Howard Jarvis Taxpayers Assn. v. Powell CA4/2

CourtCalifornia Court of Appeal
DecidedOctober 11, 2024
DocketE079078
StatusPublished

This text of Howard Jarvis Taxpayers Assn. v. Powell CA4/2 (Howard Jarvis Taxpayers Assn. v. Powell CA4/2) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard Jarvis Taxpayers Assn. v. Powell CA4/2, (Cal. Ct. App. 2024).

Opinion

Filed 10/11/24 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION TWO

HOWARD JARVIS TAXPAYERS ASSOCIATION, E079078 Plaintiff and Respondent, (Super.Ct.No. RIC1905897) v.

JOHN POWELL, JR., et al.,

Defendants and Appellants.

HOWARD JARVIS TAXPAYERS ASSOCIATION, E079712 Plaintiff, Respondent and Cross- appellant, (Super.Ct.No. RIC1905897)

v. OPINION

Defendants, Appellants and Cross- respondents.

APPEAL and CROSS-APPEAL from the Superior Court of Riverside County.

Sunshine S. Sykes and Craig G. Riemer, Judges. Reversed; cross-appeal affirmed.

Greines, Martin, Stein & Richland, Robin Meadow, Rachel A. Beyda; Colantuono,

Highsmith & Whatley, Michael G. Colantuono, Pamela K. Graham and Liliane M.

1 Wyckoff for Defendants and Appellants and for Defendants, Appellants and Cross-

respondents.

Costell & Adelson Law Corporation, Jeffrey Lee Costell, John M. Haytol; Frost,

Joshua S. Stambaugh and Sara McDuffie for Plaintiff and Respondent and for Plaintiff,

Respondent and Cross-appellant.

This appeal is from one of several cases between Howard Jarvis Taxpayers

Association (Howard Jarvis) and the Coachella Valley Water District (Water District).

Here, we consider whether the public interest exemption to the anti-SLAPP statute

applied, as the trial court found. We hold that the exemption did not apply, as there was

no justifiable reason for Howard Jarvis to sue the Water District’s board members or

general manager individually for remedies only the Water District can provide. We also

hold that the anti-SLAPP motion should have been granted, except as to one cause of

action.

Our holding on the anti-SLAPP motion determines one of the two other issues

before us. Following the denial of the anti-SLAPP motion, the plaintiff moved for fees

on the ground that the anti-SLAPP motion was frivolous or solely intended to cause

delay. The trial court agreed and awarded over $180,000 against the anti-SLAPP

defendants and their counsel. Our reversal on the anti-SLAPP motion means the fee

award must be reversed. As to a cross-appeal on a later order sustaining a general

demurrer, our reversal on the anti-SLAPP motion means that almost all the cross-appeal

2 is moot. We hold that the demurrer was properly sustained on the lone cause of action

not mooted by the anti-SLAPP.

I. BACKGROUND

Howard Jarvis and the Water District have litigated repeatedly. Some of the cases

originated as lawsuits filed by Randall Roberts where Howard Jarvis later substituted in

as the plaintiff. Howard Jarvis initiated others. We recently decided two appeals

between these parties. In one, we held that the validation statutes (Code Civ. Proc.,

§§ 860-870) applied to the Water District’s ad valorem property tax. (Coachella Valley

Water District v. Superior Court of Riverside County (2021) 61 Cal.App.5th 755

(Coachella I).) In the other, we held that the Water District’s interfund loan did not

violate Propositions 26 and 218. (Howard Jarvis Taxpayers Association v. Coachella

Valley Water District (Feb. 10, 2023, E078411) [nonpub. opn.] (Coachella II).) In other

active appeals before us, we will consider whether the Water District’s canal rates and 1 groundwater assessment charge violate Propositions 26 and 218. But this appeal

involves pretrial orders in the groundwater assessment charge case against the Water

District, and although the several other defendants in the case are parties to this appeal,

the Water District is not.

The Water District is a public agency responsible for supplying water to the

Coachella Valley. Its main source of potable water is the groundwater in the Coachella

1 On our own motion, we take judicial notice of the appellate record in Coachella I, Coachella II, and the active appeals between the parties before us. (Evid. Code, §§ 452, subd. (d), 459.)

3 Valley aquifer. For decades, the aquifer’s groundwater levels declined from overdraft, so

the Water District now manages the aquifer by spreading or injecting water from other

sources into the aquifer. This process is partially funded by replenishment assessment

charges (replenishment charges), which Water Code section 31630 gives the Water

District the authority to impose. (See also Wat. Code, § 31630.5, subd. (g)

[“Replenishment” also includes “incentive programs encouraging producers to use

reclaimed water . . . instead of groundwater”].) The Water District divides its service

area into three areas of benefit: the East Whitewater River Subbasin area, the West

Whitewater River Subbasin area, and the Mission Creek Subbasin area. Each area is

subject to its own replenishment charge. (Wat. Code, § 31633; see also Coachella II,

supra, E078411 [describing Water District’s groundwater management].)

In November 2019, Roberts filed a combined petition and putative class action

complaint against the Water District; three of its five board members (John Powell Jr.,

Peter Nelson, and Anthony Bianco); its general manager (James Barrett); and three

consulting firms (MWH Global Inc., Hawksley Consulting, Inc., and Stantec Consulting,

Inc.). It alleged that the replenishment charges unconstitutionally violate Propositions 26

and 218, and that the defendants have “perpetually forc[ed] property taxpayers, domestic

ratepayers, and those paying [replenishment charges] in the West to subsidize the

interests of large agricultural property owners in the East Coachella Valley, including

Board members Powell, Nelson and Bianco.” According to the pleading, in 2017, the

replenishment charge for the East Whitewater River Basin area was $66 per acre-foot,

4 whereas the replenishment charges for the West Whitewater River Subbasin area and

Mission Creek Subbasin area were $143.80 per acre-foot and $135.53 per acre-foot,

respectively. The pleading alleges that, as a result of the low replenishment charge for

the East Whitewater River Basin area, “Big Ag businesses in the East (including those

owned by . . . Powell, Nelson and Bianco) enjoy artificially ‘cheap’ groundwater and, in

turn, reap incredible profits.” The low replenishment charge for that area was justified by

the consultants’ cost-of-service study, “which deliberately fabricated a fictional basis for

the discriminatory” rates.

The petition and complaint alleged nine causes of action: (1) writ of mandate

(against the Water District, the three board members, and the general manager);

(2) violation of the California Constitution (against the Water District); (3) violation of

the United States Constitution (against the Water District); (4) violation of the Water

Code (against the Water District); (5) conversion (against the Water District, the three

board members, and the general manager); (6) aiding and abetting tortious conduct and

statutory violations (against the consultants); (7) civil conspiracy to commit tortious

conduct and statutory violations (against all defendants); (8) violation of the Unfair

Competition Law (UCL, Bus. & Prof. Code, § 17200 et seq.) (against the consultants);

and (9) declaratory relief (against all defendants).

All the defendants demurred on all causes of action, and all defendants except the

Water District filed an anti-SLAPP motion under Code of Civil Procedure section 425.16

5 2 (section 425.16).

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