San Juan Capistrano Resident Files Multimillion-Dollar Claim Against City

A San Juan Capistrano resident is taking the first steps toward what could become a class-action lawsuit by filing a multimillion-dollar claim with the city that he and other local landowners have been over-charged for water.

Resident John D. Jenkins filed a claim with the city Friday asking for between $20-$30 million on behalf of all who have received water bills since Feb. 2, 2010.

“The city’s water rate structure is invalid and unconstitutional because fees are imposed on each parcel of property that exceeded the proportional cost of services attributed to each parcel,” Jenkins’s attorney wrote in paperwork turned in at City Hall.

Jenkins also complains that the city has been collecting a fee for recycled water “even though very few ratepayers have access to or are able to use recycled water.”

His comments echo the findings of an Orange County Superior Court judge who ruled in August that the city’s rate structure violates the state’s Constitution.

Indeed, Jenkins’s attorney, Dean Zipser of Keller Rackauckas Umberg Ziper of Irvine and another firm, Klein & Wilson of Newport Beach, have joined the lawsuit brought by the Capistrano Taxpayers Association. Although the group prevailed in court, the City Council has since decided to appeal the decision.

Benjamin Benumof, the primary attorney on the case, confirmed the two firms have joined him for the appeal.

“The city must file its opening appellate brief by Dec. 24,” he said, giving an update on the case.

Meanwhile, Keller Rackauckas and Klein & Wilson are firms known for representing plaintiffs in civil lawsuits, including class actions – when a group of plaintiffs comes together for one case.

“No case has been filed yet,” said attorney Gerald Klein. “We are going through the mandatory claim process which will take time to play out.”

The City Council must first act on claims, which are typically for one-time events which cause damage or injury, such as this one where a city employee allegedly spooked a horse. The council routinely rejects the claims.

Jim Reardon, a CTA board member, said Jenkins is not a member of his group.

“I’m pleased that he has stepped forward to represent water customers in San Juan Capistrano who have been too long abused under our city’s extraordinary water rates,” Reardon said.