Local water district settles class action lawsuit
The Coachella Valley Water District recently settled a $2 million lawsuit, which means some customers could be seeing a refund in the form of a credit.
“I’m all on the class action suit. Now, I don’t usually get involved in this type of thing but I have to tell you, it’s just not fair,” Palm Desert resident Christina De Musee told KESQ News Channel 3’s and CBS Local 2’s Katie Widner.
This week, CVWD customers will be receiving a legal notice in the mail notifying them that a settlement has been reached in a lawsuit that challenged the district’s former rates.
“Clearly, we’re thrilled. I mean, when your bill goes up 200 percent and then you hear that the basis for which those were raised was perhaps faulty, we’re happy to put some money back in our pockets to spend on other things I suppose,” said Steven Hecht, who has been a customer for at least eight years.
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Back in 2009, CVWD was one of the first agencies that adopted a budget based tiered-rate system, essentially giving every customer an individual water budget based on how many people are in the home, how hot it is and how large their landscaping is.
A representative for the district said that it had been a public and transparent process, and that the district followed legal advice at the time.
“Over the years, as more agencies have adopted tiered rates, there have been other legal challenges and through them, the courts have narrowed and defined what are legal tiered rates,” said Heather Engel, the director of communication and conservation.
Last year, the district adopted a new system, which it says is fully compliant with the law. However, it settled the suit to avoid costly legal fees. Those who may benefit from it- were customers who paid for water in tiers three, four or five during the nine-month period of Oct. 1, 2015, through June 30, 2016.
“The refund will be distributed by way of refund on a CVWD customer’s bill,” Engel added.
Need water utility information? Check out CVWD online.
Eligible recipients can expect to see these credits sometime in the fall. The exact amount of what they will get is not yet known as it will be divvied up among all parties after legal expenses are paid. The district said drought penalties are not included in the refund.
Eligible recipients who are no longer customers of CVWD will need to file a claim. Legal representative of the plaintiff who brought the suit said anybody with any questions about how they may be affected, or what they may be entitled to, should visit cvwdsettlement.com.
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