Central Basin MWD Wins Lawsuit Against West Basin MWDCourt orders west basin to pay their lawful portion of employee retirement benefits.
The West Basin Municipal Water District lost a lawsuit filed by the Central Basin Municipal Water District for a breach in settlement when West Basin MWD refused to pay their share in unfunded liability expenses for joint employees after the two districts' partnership was dissolved in 2006. The ruling came Oct. 23, after the lawsuit was filed nine months ago.
The settlement had been negotiated as a result of another lawsuit that West Basic MWD filed against Central Basic MWD in 2006. It accorded that each district would pay the California Public Employees Retirement System (CalPERS) their share of unfunded liability, which was issued out on Nov. 30, 2007.
CalPERS issued its report based on actuarial assessments relating to active employees working for each district right after the partnership of both West and Central Basin MWDs ended.
West Basin MWD had 30 days to pay its share of 72.33 percent of all active employees, which amounted to $1,096,997 in accrued liabilities. To date, West Basin MWD owes $354,139, plus interest and litigation fees for the trial. Central Basin MWD is seeking attorney's fees and related costs. The court will decide how much West Basic MWD owes.
"This should have never gone to court. Unfortunately, sometimes that's what it takes before the right thing is done," said Art Aguilar, General Manager for Central Basic MWD. "Paying for more than our share in CalPERS expenses at a cost to our ratepayers was just not fair. We're glad to see justice prevail this week."
In 1990, the West and Central Basin MWDs began operating together. They dissolved their partnership in June 2006. |