APPLE VALLEY, Calif. – August 24, 2026 – The California Supreme Court today issued its opinion in the Town of Apple Valley’s water acquisition case, resolving a statewide legal question concerning the standard courts must apply when a public entity seeks to acquire a privately owned utility through eminent domain.

The Supreme Court held that a trial court must exercise its independent judgment and determine whether the utility has proven, by a preponderance of the evidence, that the statutory requirements for the acquisition have not been met. The Court rejected the more deferential standard previously adopted by the Court of Appeal.

The Supreme Court did not, however, finally resolve the Town’s appeal or determine whether the trial court’s judgment should ultimately stand. Instead, it returned the case to the Court of Appeal to reconsider the remaining issues raised by the Town.

The Court of Appeal must now decide whether the other issues it previously identified with the trial court’s ruling, including the trial court’s reliance on events that occurred after the Town adopted its Resolutions of Necessity, are serious enough to overturn the ruling despite the Supreme Court’s decision on the legal standard.

“We are disappointed that the Supreme Court rejected the legal standard adopted by the Court of Appeal,” said Mayor Scott Nassif. “But today’s opinion does not end the case. The Court of Appeal must still consider the remaining errors identified in the trial court proceedings, and the Town will continue to protect the interests of Apple Valley residents throughout that process.”

The Supreme Court’s opinion also does not authorize or prohibit the Town’s proposed acquisition of the water system. Further proceedings before the Court of Appeal will determine the next stage of the case.

The Town and its legal team are reviewing the opinion and will evaluate the appropriate next steps.

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