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CONFIDENTIAL

May 27, 2000

Real Property
Inverse Condemnation
Negligence

Confidential

Settlement –  $3,050,000

Judge

Charles D. Field

Court

Riverside Superior


Attorneys

Plaintiff

Hans Van Ligten

Layne H. Melzer


Defendant

Robert J. Gokoo
(Law Offices of Robert J. Gokoo)


Experts

Plaintiff

Mike Miller
(technical)

Naresh J. Kar
(technical)

Anthony Perrone
(technical)

David Hargis
(medical)

Gary Stoney
(technical)

Rodney L. DuBois
(technical)

Facts

Plaintiffs operated an open pit silica sand mine. In 1996, a 100-year-old waterline ruptured, which
caused water to run into the mining pit. The defendant shut off the water and the flow slowed almost
immediately. Months later, after further mining, cracks began to appear in a wall in the pit adjacent to the
waterline rupture.
The plaintiffs requested permission from the defendant to make repairs to the area and remove the broken
pipeline. The defendant refused and threatened litigation. The condition of the wall worsened and had to be
abandoned until the pipeline was removed.
By the time the defendant water district gave permission to remove the broken pipeline, a financial impact on
plaintiffsÆ business was brought about by additional costs and abandonment of several deposits. Due to the
economic hardship, in February 1997, plaintiffs filed for bankruptcy. The bankruptcy court made a decision to
close the mine.

Damages

Loss of business and the operation of the mine with an estimated loss between $7 million and $12,000.


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