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Water litigation
Water Litigation with Fairfax Water
Panel Refuses City Petition for Appeal
A three-judge panel of the Supreme Court of Virginia has refused (Sept. 1, 2010) the City of Falls Church's Petition for Appeal of a ruling by Fairfax County Circuit Court Judge R. Terrence Ney regarding Count V of a Fairfax Water lawsuit against the City of Falls Church. "The City is disappointed with this decision and will be filing a Petition for Rehearing for consideration by all members of the Supreme Court," said Wyatt Shields, City Manager. While the City's Petition for a Rehearing is pending, the stay of Circuit Court Judge Ney's ruling against the City will remain in effect until a final order is entered by the Supreme Court.
Settlement Reached in January 2010
In January 2010, the City of Falls Church and Fairfax Water successfully resolved the matters pending in Fairfax County Circuit Court (except Count V, see above). The consent decree (see below) is beneficial for all residents and businesses in the City of Falls Church and Fairfax County. In the decree, neither party admits liability and both Fairfax Water and the City of Falls Church will have the opportunity to provide water service in the portions of Fairfax County currently served by the City. In addition, the City has agreed to pay Fairfax Water $750,000 to settle claims, fees and damages, which the City reports will be covered by the City's liability insurance. Both entities welcome the conclusion of this case so that they can resume focus on the business of best serving the public.The City continued its appeal of Count V, the Fairfax County Circuit Court's Final Decree of Jan. 6, 2010, which prohibited the City from transferring water fund surpluses to the City's general fund. Background
On December 8, 2008, Fairfax Water brought litigation against the City of Falls Church, alleging interference with its attempt to selectively provide water service for customers in the City's traditional service area. Fairfax Water subsequently amended its suit to add a count on the constitutionality of the City's return on investment from the water fund. The trial regarding Fairfax Water's complaint against of the City of Falls Church on the constitutionality of the City's water service charges and water fund transfer ended on Sept. 23, 2009. Additional counts regarding antitrust claims in the Fairfax lawsuit against Falls Church Water is scheduled to be heard in Fairfax Circuit Court beginning Feb. 1. For further background on the history of the City of Falls Church water system and the City's perspective on this dispute, read City Manager Wyatt Shields' letter to customers:  Open Letter to Customers All filings, briefs, and rulings associated with the litigation are listed below in chronological order, with the most recent at the top of the list. Order Denying City's Petition: Sept 1, 2010 Brief in Opposition to the Petition for Appeal: April 26, 2010 Petition to Appeal VA Supreme Court: April 6, 2010 Consent Decree: Feb. 25, 2010 Order Continuing Trial to March 1: Feb. 4, 2010 City's Bench Brief on Counts I, II and IV, Feb. 1, 2010 Fairfax Water's Pre-Trial Brief on Liability Phase, Counts I, II and IV, Feb. 1, 2010 Falls Church Obtains Agreed Stay of Judge's Ruling, Jan. 28, 2010 Consent Order Suspending Final Decree Pending Appeal, Jan. 27, 2010 City's Objections to Final Decree on Count V - Jan. 22, 2010 FCWA's Motion to Dismiss the City of Falls Church's Petition for Review for Lack of Jurisdiction, Jan. 22, 2010 City's Petition for Expedited Review Jan. 21, 2010 Falls Church Memo in Support of Motion to Clarify Jan. 11, 2010 Falls Church Motion for Reconsideration Jan. 11, 2010 Final Decree on Count Concerning City's Water Rates and Water Fund Transfers, Jan. 6, 2010 City of Falls Church's Brief in Opposition to Fairfax Water's Request for Judgment on Count V, Oct. 21, 2009 Fairfax County Water Authority's Post-Trial Brief in Support of Judgment on Count V, Oct. 9, 2009 Trial Summary Count V Sept. 23, 2009 City of Falls Church's Bench Brief Regarding Certain Legal Issues Relevant to Count V, Sept. 10, 2009 FCWA's Brief in Opposition to City's Motion to Exclude Evidence of Past Rates Sept. 3, 2009 Order Staying Counts I, II and IV until February 2010, Aug. 27, 2009 Fairfax County Water's Letter to Judge Ney Waiving Jury Trial Aug. 25, 2009 City's Motion to Exclude Evidence of Past Rates and Charges Aug. 21, 2009
Order Dismissing Falls Church's Countersuit Against Fairfax Water and Fairfax County Aug. 14, 2009 Bench Ruling Dismissing City's Countersuit Aug. 14, 2009 City of Falls Church Memo in Support of its Plea in Bar and Motion to Dismiss the Damages Claim of Counts I, II and IV Aug. 7, 2009 Order Appointing Three Judge Court and Order Denying Motion to Dismiss, July 13, 2009 Order Granting Falls Church's Motion to Add Fairfax County as a Third Party in Lawsuit Against City May 22, 2009 Falls Church Counterclaim to Fairfax Water's Amended Complaint (no date) Brief in Opposition to Falls Church Motion May 15, 2009 Falls Church Petition for Convening Special Court May 6, 2009 Falls Church Answer to Fairfax Water's Amended Complaint April 17, 2009 Circuit Court Ruling Regarding Fairfax Water Complaint March 13, 2009 Fairfax Water Opposition to City's Demurrer Feb. 24, 2009 Open Letter to Falls Church Water Customers Feb. 19, 2009 Falls Church Demurrer to Amended Fairfax Water Complaint Feb. 13, 2009 Fairfax Water Files Complaint Against Falls Church Jan. 9, 2009
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