Facts

In 2005, Seymour Lewis Development Ltd. developed an industrial plaza Fenton Business Center in San Diego. In 2007, tenants of the plaza began to criticize the quality of water there, and called Otay Water District, which had agreed to take responsibility for the water system. Otay Water declined to take action. Instead, Seymour Lewis paid for water testing, which showed that the water had toxins and bacteria due to the fact that it was reclaimed sewer water. Seymour Lewis also discovered that the pipes leading to the Otay Water reclaimed water system had been mistakenly labeled as potable water. Seymour Lewis then sued Otay Water and several of the contractors.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that defendant failed to provide potable water to the center, causing plaintiff to lose tenants and rent due to plaintiff.

DEFENDANT'S CONTENTIONS:
Defendant claimed that it was not responsible for problems with the water system.

Damages

Plaintiff claimed between $3,302,920 and $3,390,790 in damages.

Result

The parties settled the matter for $2 million.