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Contracts
Breach of Contract
Private Nuisance

Karen Micheli v. The City of Fresno, et al.

Published: Feb. 16, 2024 | Result Date: Jan. 4, 2022 | Filing Date: Mar. 8, 2021 |

Case number: 16CECG02937 Summary Judgment –  Defense

Judge

Rosemary T. McGuire

Court

Fresno County Superior Court


Attorneys

Plaintiff

Raymond P. Boucher
(Boucher LLP)

Shehnaz M. Bhujwala
(Boucher LLP)

Gregory J. Owen
(Owen, Patterson & Owen)

Stuart R. Chandler
(Stuart R. Chandler APC)

Brian S. Kabateck
(Kabateck LLP)

Michael E. Gatto
(Law Office of Michael E. Gatto PC)

Frank M. Pitre
(Cotchett, Pitre & McCarthy LLP)

Julie L. Fieber
(Cotchett, Pitre & McCarthy LLP)

Donald J. Magilligan
(Cotchett, Pitre & McCarthy LLP)


Defendant

Tina R. Griffin
(Office of the Fresno City Attorney)

Matthew D. McMillan
(Tropea McMillan LLP)

Jeffery L. Caufield
(Caufield & James LLP)


Facts

On March 8, 2021, Plaintiffs Karen Micheli, an individual and as Trustee of the Michael Micheli and Karen Micheli Trust; Michael Micheli, an individual and as Trustee of the Michael Micheli and Karen Micheli Trust; Faith Nitschke, an individual and as Trustee of the Nitschke Family Trust of 2000; David Nitschke, an individual, and as Trustee of the Nitschke Family Trust of 2000; Jeanette Grider; Jackie Flannery; Guadalupe Meza; Ronda Rafidi; Shann Hogue, formerly known as Shann Conner; Marirose Larkins; Patricia Wallace-Rixman, also known as Patty Wallace-Rixman; Harry Rixman; and Kelly

Unruh, an individual and as Trustee of the Kelly D. Unruh Living Trust filed their Consolidated Fifth Amended Class Action Complaint against the City of Fresno (City) alleging putative class claims against Defendant The City of Fresno ("City") for Negligence, Private Nuisance, Breach of Contract, Unjust Enrichment, and Breach of Implied Warranty. By orders dated July 30, 2021 and August 2, 2021, the Court granted Plaintiffs' motion for class certification and certified Plaintiffs' Negligence, Private Nuisance, Breach of Contract, and Breach of Implied Warranty claims for class action treatment. The class included all owners of residential, single-family real property located within the City's Discolored Water investigation area (from E. Copper Avenue to E. Sierra Avenue, and from State Route 41 to N. Willow Avenue) who, anytime between January 1, 2016, and August 2, 2021: had galvanized iron plumbing, received water service from the City, reported discolored, "rusty" water at that address to the City, and have not released their claims against the City. The Court also certified two subclasses. Subclass 1 included class members who obtained water quality test results from the City indicating iron at any tested fixture above 0.3 mg/L. Subclass 2 included class members who have not obtained water quality test results from the City. On October 4, 2022, the Court granted the City's motion for summary judgment.

Contentions

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged in the consolidated class actions, initiated in 2016 following a public investigation into the City's discolored, contaminated water issues, that the City was negligent, created a private nuisance, was liable for inverse condemnation, and breached its service contracts and warranties, based upon its failure to operate its water system in compliance with its water permit and laws, and its failure to stabilize water characteristics after it introduced surface water into its water supply, with the predicted result that Northeast Fresno area residents whose homes had galvanized iron pipes and received surface water and groundwater experienced corrosion which permanently damaged the pipes and released contaminants, including lead, into their drinking water. Plaintiffs alleged that the City was aware that introduction of surface water into its water system could destabilize

water chemistry and cause corrosion of residential pipes based on studies conducted before the City's Northeast Surface Water Treatment Facility came online in 2004. After the City started the facility, residents reported receipt of discolored water. Rather than address the problem, the City covered it up, failing its mandatory duties to report all discolored water reports to the State for over a decade, modifying its corrosion treatment process without approval, and failing to maintain targeted water quality characteristics, in violation of its water permit and laws. Plaintiffs argued that they suffered ongoing harm and injuries based upon these failures . Plaintiffs contended that the corrosive damage to their residential plumbing created a risk of exposure to excessive levels of lead, iron and other toxic substances from their drinking water, which could only be ameliorated through replacement of the damaged plumbing, as predicted by the City's own expert during its initial studies of the water treatment system

DEFENDANTS' CONTENTIONS: Defendants denied all contentions.

Result

The court granted defendants' motion for summary judgment.

Other Information

Consolidated with Jackie Flannery, et al. v. The City of Fresno, et al., Case Number 17CECG01724 Plaintiffs filed an appeal, the City cross-appealed, and the appeals are pending before the Fifth District Court of Appeal (F085599)


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