Facts

In September 2007, the Department of Fish and Wildlife applied the insecticide Rotenone to Lake Davis and its tributaries to eradicate the invasive Northern Pike from the lake. The lake is near the City of Portola. The Department was concerned that the pike were destroying the trophy trout fishery at Lake Davis and, if they escaped the lake, they could devastate fragile downstream salmon, steelhead and trout populations.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that the poisoning of the lake damaged its reputation and caused real property values to drop resulting in a loss of real estate tax revenues to the city. The city further contended that it relied upon Lake Davis as a water source and the use of Rotenone interfered with its water rights. Finally, the city claimed that following the eradication, the department negligently restocked the lake with fish infested with parasitic copepods.

DEFENDANT'S CONTENTIONS:
Defendant contended that the use of Rotenone was necessary to protect the trout in Lake Davis and downstream fisheries. The department paid the city for the construction of alternative water sources. The department further contended that the decline of property values was due to the widespread recession and not anything having to do with the eradication project.

Settlement Discussions

Plaintiff sought $82 million in damages. Prior to trial, the city made a CCP 998 demand for $39 million. Defendant made a CCP 998 offer of $100.

Result

The jury returned a defense verdict. The jury concluded that the department did not negligently over poison the lake and did not interfere with any economic relationships. The jury did find that the department negligently restocked the lake with fish infested with parasites but found that there was no harm to the city.

Other Information

FILING DATE: March 16, 2009.

Deliberation

one day

Length

11 days