California Supreme Court halts SoCal town’s water utility takeover

The California Supreme Court ruled unanimously that courts, not just the government entities seeking to seize property, get the final word on whether an eminent domain taking is truly necessary. The decision sends Apple Valley's decade-long attempt to take over the privately owned Apple Valley Ranchos Water Company back to a state appeals court for another look.

The dispute dates to 2010, when investment firm Carlyle Infrastructure Partners bought the utility and raised rates, prompting the town to pursue a takeover. A trial court initially sided with the utility, awarding it $13.2 million in fees, before an appeals court reversed; the Supreme Court has now undone that reversal, ruling that trial courts must independently weigh the evidence rather than defer to a town's own resolution.

The utility, now owned by Liberty Utilities, serves about 65,000 people. Similar eminent domain fights are unfolding elsewhere in the state, including San Francisco's push to take over part of the PG&E grid.

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