Class Action Lawsuit Tests Constitutional Limits of Tiered Rates and Penalties Imposed for Excessive Water Use

January 24, 2017

In the January edition of Argent Communications’ California Water Law & Policy Reporter, Gresham|Savage attorneys Derek Hoffman and Michael Duane Davis report on the implications of recent litigation regarding the ever-controversial issue of establishing water rates and penalties.  The class action lawsuit, filed by a handful of prominent property owners, alleges that the Town of Hillsborough illegally established and imposed a tiered water rate structure and conservation penalties totaling hundreds of thousands of dollars in violation of the California Constitution.  The litigation has statewide implications as California water law and policy continue to change dramatically in response to historic drought conditions.