Cities are increasingly attempting to take over operating utility systems through the exercise of the power of eminent domain. Austin partner Christopher M. Clough briefed and argued Cause No. 02-13-00343-CV, City of Blue Mound v. Southwest Water Company, et al., to the Second Court of Appeals in Fort Worth, which involved such as taking. The 348th District Court dismissed the case, finding that the City could not use the Texas condemnation statutes to condemn an operating utility system as a going concern. The Second Court of Appeals, in a decisive opinion, affirmed the holding of the underlying Court, and protected Southwest Water’s private water system from being taken.
A copy of the Second Court of Appels’ opinion can be found here.