Legal Trend: City to Use Eminent Domain to Acquire Private Water Company

Ojai California is using eminent domain to condemn the water utility that serves its community. Fed up by high water rates, the city opted for eminent domain.

Eminent Domain and the judicial system go hand in hand. The private company that operates the private water utility in Ojai, sued. The Second Court of Appeals sided with Ojai that eminent domain allows the taking of the utility so that the the utility can be operated by the local government. 

The Court went so far as to state: ” The Act facilitates the purchase of property regardless of whether the seller consents to the sale or is compelled under force of law. Moreover, financing the acquisition of intangible property incidental to the real or tangible property being purchased is consistent with the Act’s text and purpose.”

Central Valley Business Times  California Special Districts Association