Under terms of the settlement, the 145-acre golf course is guaranteed an adequate supply of water from the basin beneath the course while the city of San Juan Capistrano, Calif., may continue to operate a groundwater recovery plant without risks of litigation. The club sued the city in 2014, saying its ability to operate was being jeopardized by the city’s extraction of water as a source of drinking water.
San Juan Hills Golf Club and the City of San Juan Capistrano, Calif., have agreed to settle a lawsuit over groundwater rights, the Santa Ana, Calif., Orange County Register reported.
Under terms of the settlement, the 145-acre golf course is guaranteed an adequate supply of water from the basin beneath the course while the city may continue to operate a groundwater recovery plant without risks of litigation, the Register reported.
The golf club sued in 2014, saying its ability to keep its fairways green and operate was being jeopardized by the city’s extraction of water as a local source of drinking water. The suit said the city was depleting the basin in violation of a state law that gives the golf club legal rights to the water beneath its property, the Register reported.
“This was a lawsuit the golf club did not want to bring and sought to avoid,” General Manager Mike Abee said in a statement. “However, faced with the prospect of being forced out of business we had no choice. The problem seemed to be an unintended yet business-killing consequence of the groundwater recovery plant.”
The club’s announcement praised Mayor Pam Patterson for leadership in settling a dispute both sides figured could cost millions of dollars if it went to trial in 2017, the Register reported.
“Litigation matters not only distract the city from addressing other vital city business, the legal costs and future legal costs are a serious budgetary strain,” Patterson said in a statement. “To the extent we could end this litigation on reasonable terms, it was in the city’s best interest to do so sooner rather than later.”
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