Meyers Nave Secures Appellate Victory for City of San Diego in Utility Relocation Dispute

We are pleased to share a significant appellate victory achieved in partnership with our client, the City of San Diego. The Court of Appeal reversed the lower court in full, granting summary judgment in favor of the City in the dispute with San Diego Gas & Electric Company (SDG&E) over utility relocation costs related to the City’s ambitious Pure Water Project.

Background of the Dispute

The case centered on the costs associated with relocating SDG&E’s gas pipelines and other utility infrastructure to facilitate the City’s ambitious Pure Water Project. This project is the largest and most costly infrastructure initiative ever undertaken by San Diego, with a total estimated cost of over $3 billion. Its goal is to convert sewage into potable water through advanced purification processes, aiming to significantly enhance the city’s water supply and sustainability.

In 2018, the City Council authorized an initial expenditure of $35 million to begin the relocation process, with the expectation that these costs would be covered by SDG&E under the terms of their franchise agreement. However, SDG&E contested this responsibility, leading to a legal dispute. The City argued that state law and the franchise agreement required SDG&E to bear the costs of relocating its infrastructure for public projects like Pure Water.

The lower court initially ruled against the City, placing the financial burden of relocation costs on San Diego taxpayers.

Appellate Court Decision

The appellate court’s decision marks a pivotal victory for the City. The court thoroughly reviewed the franchise agreements and determined that SDG&E is indeed responsible for covering the relocation costs. This ruling reverses the previous judgment and directs the superior court to enter summary judgment in favor of the City. Additionally, the court denied SDG&E’s petition for a rehearing.

This decision not only relieves the City of a significant financial burden but also supports the continued progress of the Pure Water Project without additional taxpayer expense.

Acknowledgments

This outcome highlights the successful collaboration between Meyers Nave and the City of San Diego. Our team, led by David Skinner with the invaluable support of Nicole Ries Fox and Kristof Szoke, is proud to have played a role in securing this favorable result.

We are dedicated to providing exceptional legal representation and are honored to have supported the City in this important matter. The ruling ensures that resources can be allocated more effectively toward vital public infrastructure and sustainability initiatives.