California Supreme Court blocks town's bid to seize private water utility in 7-0 ruling

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California's Supreme Court has unanimously ruled against a town that spent a decade attempting to seize a private water utility through eminent domain. The 7-0 decision rejected the municipality's claim, marking a significant shift in how such takeover attempts will be evaluated by courts. The justices ruled that necessity declarations must undergo thorough, independent scrutiny before any private utility can be acquired by a government body. The ruling strengthens the legal standing of private water, gas, and electricity companies when challenging municipal takeover efforts.

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