Desert Hot Springs, CA – Mission Springs Water District is pleased to announce the Superior Court's final approval of the class action resolution.
Under the terms of the agreement and with no liability assigned, both parties agreed to a $225,000 class action amount, whereby after the cost of administration, those charged a Tier 2 rate on estimated consumption would receive a prorated credit for most of the difference between the Tier 2 and Tier 1 rate. As is customary in cases such as this, the court also approved the plaintiff's legal reimbursement of $100,000.
"To be clear, MSWD agreed to this because it is in the best interest of our ratepayers—we did not lose, nor did the plaintiffs win. Instead, both parties entered into the agreement to avoid years of costly and unnecessary litigation. Because of other related successful legal actions, this will not be funded by rates," said General Manager Arden Wallum.
Throughout the proceedings, MSWD was prepared to move forward with the lawsuit and was confident that the outcome would have been in its favor. "However, no one wins in cases like this. Left unchecked, this case would have cost our community substantial legal fees. This is the best option for all parties involved," added Wallum.
A court-appointed third-party administrator is overseeing the credit process, and customers due a credit will receive them on an upcoming MSWD statement. Those that receive a credit but have since moved out of the service area will have a check mailed to the address they provided at the time of the account closure.
For specific credit information, customers can contact Simpluris, the third-party fund administrator, at (866) 603-4665 or by email at info [at] MSWDClassActionSettlement.com
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