Woodruff & Smart attorneys Bradley R. Hogin and Ricia R. Hager successfully defended Inland Empire Utilities Agency (IEUA) in a lawsuit brought by the Cities of Ontario, Chino, and Montclair over recycled water rights under an expired regional sewage service contract.
The cities argued that their contractual right of first purchase of recycled water survived the contract’s expiration in January 2023. They sought to prevent IEUA from enforcing ordinances that replaced the contract, contending that those ordinances unlawfully impaired their contractual rights.
Los Angeles County Superior Court Judge Curtis A. Kin denied the cities’ petition for writ of mandate, holding that the contract’s continued-service provision did not preserve their right of first purchase after expiration. The court therefore rejected the claim that IEUA’s ordinances violated the constitutional prohibition against impairment of contracts. Judgment was entered in IEUA’s favor on all causes of action.