California Appellate Tracker

Pure Water, Inc. v. City of Prescott

January 29, 2017

Plaintiff company and defendant city entered into an agreement that plaintiff’s effluent would meet certain fluoride concentration levels; subsequently, when the city passed stricter environmental regulations in order to comply with new state laws, the company’s remedy was a breach of contract lawsuit, not a claim under the US Constitution’s contracts clause.

Prescott entered into an agreement with Pure Water to entice it to locate in Prescott. Under the agreement, Prescott agreed to accept Pure Water’s effluent at specified sewage rates if the effluent met certain fluoride concentration levels. After the state passed stricter water contamination laws, Prescott passed an ordinance requiring lower fluoride concentrations in Pure Water’s effluent. Held, since Pure Water retained an adequate remedy in a suit for damages for breach of contract, it could not state a claim against Prescott under the US Constitution’s contracts clause.

Ninth Circuit Court of Appeals (O’Scannlain, J.); January 10, 2017; 2017 WL 83474

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Pure Water, Inc. v. City of Prescott

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