Town of Apple Valley v. Apple Valley Ranchose Water

I.

INTRODUCTION

The Town of Apple Valley (TAV) sought to condemn via eminent domain a

private water utility system. In November 2015, TAV passed two resolutions of

necessity (RON) to acquire the water system, which was then owned by Carlyle

Infrastructures Partners and operated by Apple Valley Ranchos Water (AVR). In January

2016, TAV filed this eminent domain action to acquire the water system. A day later,

Carlyle’s sale of the water system to respondent Liberty Utilities closed.

After extensive proceedings, including a 67-day bench trial held between late 2019

and early 2021, the trial court issued a Statement of Decision (SOD) finding that TAV

did not have the right to acquire the water system. The court thus entered judgment and

an award of attorney’s fees for Liberty. TAV timely appealed.

We reverse for two main reasons: (1) the trial court applied the wrong standard of

proof and, in turn, failed to give the appropriate deference to TAV’s decision and

underlying findings, and (2) the trial court improperly based its decision entirely on post-

RON facts and events, namely, Liberty’s conduct after TAV adopted the RONs. The

matter is remanded for further…