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San Diego Water Rate Refund Settlement

Settlement Amount
Pro rata refund if overcharged
Claim Deadline
November 12, 2026
Total Fund
$40,000,000

Not every customer gets a refund. This settlement refunds City of San Diego single-family residential water customers who were overcharged under rate structures a court found unconstitutional, and there is no claim form and no proof to submit — but two things about it are routinely misread, and both cut against the headline. First: being in the class does not mean you get a refund. The court-authorized notice says in terms that not all customers were overcharged, and that class members who were not overcharged under the refund calculation the Court of Appeal affirmed will not receive a refund — while still being bound by the release. The class runs to roughly 436,069 people; an unpublished subset of them gets $0. Second: the $40,000,000 is the gross fund, not the payout pool. Attorneys' fees of up to $13,333,333.33, up to $500,000 in expenses, two $7,500 service awards and administration costs of up to about $199,000 all come out of that same $40 million, leaving roughly $25.95 million to divide among overcharged accounts if the Court approves every request. It is also City of San Diego water service only — Poway, Chula Vista, El Cajon, Escondido, Oceanside and the county's other water agencies are not covered, and neither are apartment, condo, commercial or irrigation accounts. For those who do qualify, there is no claim form and no claim deadline: refunds are automatic. November 12, 2026 is the deadline to opt out or object, not a deadline to claim — letting it pass costs you nothing if you want the money. The optional step worth taking is checking SDWaterSettlement.com, which the notice says will show whether you are estimated to receive a refund at all.

Do I Qualify?

You may be eligible if:

Nothing is required to be paid — there is no claim form and no proof to submit. Overcharged class members do not have to send in anything to receive a refund. The settlement runs off the City's own account records and its own expert's refund calculation, so the administrator already knows which accounts are owed money. The one place a credential comes up is optional: the Submit Payment Method page on SDWaterSettlement.com, where a class member can confirm their contact details and pick a paper check or an electronic payment. That page asks for the ID and Passcode printed on your notice — in the top-right corner of an emailed notice, or above the name and address on a postcard. Skipping it does not forfeit your refund. If you no longer have the notice, or you are not sure whether the City's records show your account as overcharged, contact the Settlement Administrator rather than guessing: CPT Group, Inc., 1-888-903-0334, SDWaterSettlement@cptgroup.com, PO Box 19504, Irvine, CA 92623. The notice also says the settlement website will show whether you are estimated to receive a refund, which is the fastest way to find out whether this settlement means anything for you at all.

What Happened?

The case is Patz v. City of San Diego, Case No. 37-2015-00023413-CU-MC-CTL, in the Superior Court of California, County of San Diego. The Class Representatives are Daniel Patz and Joan Chesner.

The lawsuit claims the City of San Diego charged unconstitutional single-family residential water rates, because those rates were not proportional to the cost of providing water service to its single-family residential customers.

The Court previously decided that the City had charged single-family residential customers under an unconstitutional water rate structure, and selected a refund methodology to determine which customers were overcharged. That methodology came from the City's own expert, Mark Hildebrand, and the Court of Appeal affirmed it.

319,485 class members received notice of class certification earlier in the case, and 1,068 individuals opted out by the May 30, 2020 deadline. Because the class runs through December 1, 2023, customers who moved into the City's service district after the original March 24, 2020 notice had not yet had a chance to exclude themselves; the City's records put the updated class at approximately 436,069.

After the Court determined the rates were unconstitutional, the City changed its single-family residential water rates. Those subsequent rates apply to all single-family residential customers, and the notice is careful to say there has been no judicial determination about whether the City's subsequent rates are constitutional.

In 2026 the parties agreed to settle. The City of San Diego denies that it has overcharged any class members or that any money is owed; the settlement is not an admission.

One question is being left open rather than answered. The notice says the Court has not yet decided how a new law, Government Code section 53758.5 (added by Senate Bill 1072), applies to the refund award. The settlement resolves the case without that being decided.

The City pays $40,000,000 into a non-reversionary common fund: $4,000,000 wired within 14 days of preliminary approval and the remaining $36,000,000 within 14 days of the Final Approval Order.

Class Counsel are Andre M. Mura, Steven M. Tindall and Ezekiel S. Wald of Gibbs Mura LLP, and Daniel L. Rottinghaus, Howard J. Silldorf, Anne L. Rauch and Theresa M. Filicia of Berding & Weil, LLP. Their fees, up to $13,333,333.33 plus up to $500,000 in expenses, are paid from the Settlement Fund — meaning out of the same $40 million that pays class members.

Class members who do nothing are still bound by the release and cannot start, continue or be part of any other lawsuit against the City of San Diego about the issues in this case.

The Final Fairness and Approval Hearing is set for December 11, 2026 at 9:00 a.m. PT in Department C-67, San Diego Superior Court, Hall of Justice, Fourth Floor, 330 W Broadway, San Diego, CA 92101. Attendance is optional. The notice warns the hearing date may change without further notice and tells class members to check the settlement website. If the Court does not approve the settlement, it is void and the lawsuit continues.

How to File Your Claim

  1. THERE IS NO CLAIM FORM AND NO CLAIM DEADLINE. Do not go looking for one — the official site has no claim page. If your account was overcharged under the court-approved calculation and you do not opt out, you are paid automatically
  2. WHAT NOVEMBER 12, 2026 ACTUALLY CONTROLS. It is the deadline to OPT OUT or OBJECT — it is not a claim deadline. Letting it pass costs you nothing if you want the money
  3. it is the date you lose the right to leave the settlement or challenge it. This is the reverse of most settlements, where missing the date means getting nothing
  4. FIRST, CHECK WHETHER YOU ARE EVEN DUE A REFUND. The notice says class members can visit www.SDWaterSettlement.com to see whether they are estimated to receive a refund under the settlement. Not all class members were overcharged, so this is the single most useful thing to do
  5. OPTIONAL: CONFIRM CONTACT DETAILS AND PICK HOW YOU ARE PAID. The Submit Payment Method page on www.SDWaterSettlement.com lets class members validate their contact information and pick a paper check or an electronic payment. This step is optional and does not affect whether you are paid
  6. THAT OPTIONAL STEP IS CREDENTIAL-GATED. The Submit Payment Method page asks for the ID and Passcode printed on your notice — top-right corner on an emailed notice, above the name and address on a postcard. If you no longer have the notice, contact the Settlement Administrator rather than assuming you are out
  7. TO OPT OUT BY NOVEMBER 12, 2026: complete the Opt Out Form from www.SDWaterSettlement.com and send it to CPT Group, Inc., PO Box 19504, Irvine, CA 92623, including your name, address, telephone number and signature. Opting out means no payment, but it preserves your right to bring your own lawsuit against the City over the same issues
  8. TO OBJECT BY NOVEMBER 12, 2026: send a letter that is RECEIVED by the court (or file it on the docket) by that date at San Diego Superior Court, Hall of Justice, Fourth Floor, 330 W Broadway, San Diego, CA 92101. It must include the case name and number (Patz v. City of San Diego, No. 37-2015-00023413)
  9. your full name, the address where you receive or received City water service, the property owner's name if that is not you, your phone number and email
  10. your reasons
  11. any attorney's contact information plus a list of objections that attorney has filed to other class action settlements in the last five years
  12. whether you or your lawyer intend to appear at the hearing
  13. and your signature
  14. YOU CANNOT DO BOTH. The agreement says a class member who attempts both to object and to exclude themselves is deemed to have excluded themselves and forfeits the right to object. Objecting alone, though, does not cost you your refund — the notice is explicit that you can object and remain a class member who receives payment
  15. Questions go to CPT Group, Inc. at 1-888-903-0334 or SDWaterSettlement@cptgroup.com
  16. Visit the official claim form: https://www.sdwatersettlement.com/

How Much Will I Actually Get?

There is one benefit and one route to it: an automatic pro rata refund paid to overcharged accounts. There is no second benefit to weigh it against, no separate tier for proven losses and no claim form — the only election on offer is cosmetic, a paper check versus an electronic payment. NO PER-CUSTOMER AMOUNT HAS BEEN PUBLISHED, and nobody can tell you yours in advance. READ THE $40 MILLION CAREFULLY, BECAUSE IT IS NOT WHAT GETS DISTRIBUTED. The City agreed to pay $40,000,000 into a non-reversionary common fund, and the agreement states that every payment contemplated by the settlement comes out of that fund. Class Counsel will ask the Court to approve up to $13,333,333.33 in attorneys' fees, up to $500,000 in litigation expenses, $7,500 service awards to each of the two Class Representatives, and settlement administration costs expected not to exceed $199,000. If the Court approves all of it, roughly $25.95 million is left as the Net Settlement Fund for class members — about 65 cents of every headline dollar. This is the ordinary arrangement, not the reverse one: fees here reduce what class members receive. HOW A REFUND IS SIZED. The trial court adopted a refund methodology from the City's own expert, Mark Hildebrand, and the Court of Appeal affirmed it. It compares what each unique account identifier actually paid against what that account would have paid absent the unlawful rates. The original calculation ran through September 2021; Plaintiffs retained the same expert to update it, using the same methodology, through the close of the class period. Each participating class member then receives the refund calculated for their account, proportionally reduced to fit the Net Settlement Fund available. The agreement also lets Plaintiffs propose a “floor” refund amount, because some very small recoveries are not administratively feasible to distribute. WHO GETS ZERO. Class members whose accounts were not overcharged under that calculation receive no refund at all. They remain bound by the release. The notice offers them a different consolation: all class members received the benefit of the City changing the water rates that were in effect during the period. WHEN. Payments happen only if the Court grants final approval at the December 11, 2026 hearing. The agreement has the Settlement Administrator begin distributing payments within 30 days of the Date of Finality — after the time to appeal has run or any appeal is resolved — so money is unlikely to move quickly. The fund is non-reversionary: nothing goes back to the City, and anything left after distribution goes to a court-approved cy pres recipient, proposed as the Sierra Club, California Water Committee, including its San Diego chapter.

Last reviewed: October 2, 2026 | Information verified from court records and official settlement documents.

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Frequently Asked Questions

I was a San Diego water customer during those years. Am I definitely getting a refund?
No, and this is the most important thing on this page. Every single-family residential customer of the City of San Diego between August 14, 2014 and December 1, 2023 is a class member — about 436,069 people — but class membership and payment are two different things. The court-authorized notice says it twice and without hedging: “Not all customers were overcharged. You will only receive a refund if you were overcharged based on the refund calculation accepted by the Court of Appeal,” and “those class members who were not overcharged according to this calculation will not receive a refund under the settlement.” Class members who get nothing are still bound by the release and still give up the right to sue the City over these rates. The notice says you can visit SDWaterSettlement.com to see whether you are estimated to receive a refund, and that is worth doing before you count on any money.
Does this cover my water bill if I'm in Chula Vista, Poway, El Cajon or anywhere else in San Diego County?
No. The class is limited to customers of the City of San Diego's own water service. San Diego County is served by many separate water agencies and districts — Poway, Chula Vista, El Cajon, Escondido, Oceanside, Helix Water District, Otay Water District, Padre Dam, Sweetwater Authority and others — and none of them is a defendant here. A rate complaint against any of those providers is outside this settlement entirely, however similar it looks. The account type matters too: the class is single-family residential, so apartment, condominium, multi-family, commercial, industrial and irrigation accounts with the City are not in it either.
Is the $40 million what gets split among customers?
No. The $40,000,000 is the gross fund, and the settlement agreement says every payment the settlement contemplates comes out of it — class member refunds, attorneys' fees, litigation costs, service awards and administration expenses alike. Class Counsel will ask the Court to approve up to $13,333,333.33 in fees, up to $500,000 in expenses, $7,500 for each of the two Class Representatives, and administration costs expected not to exceed $199,000. If every request is granted, the Net Settlement Fund actually distributed to class members is roughly $25.95 million — about 65 cents of each headline dollar. That is the normal arrangement in a common fund case, but it is worth knowing, because some settlements pay fees separately on top and this one does not. You have the right to object to the fee request even if you think the rest of the settlement is fair.
What is the November 12, 2026 deadline for, if there's no claim to file?
It is the deadline to opt out or to object — not a claim deadline. This settlement inverts the usual pattern. In most class actions, missing the date means getting nothing; here, doing nothing is how you get paid, and November 12 is the last date to leave the settlement or challenge it. If you want your refund, you can let the date pass without lifting a finger. If you want to preserve the right to sue the City of San Diego yourself over these water rates, November 12 is the date that matters, because after it the release binds you whether you were refunded anything or not. There is no claim form anywhere in this settlement.
How is my refund amount calculated, and can anyone tell me what I'll get?
Nobody has published a per-customer figure, and the final number is not knowable yet. The method is specific, though. The trial court adopted a refund calculation prepared by the City's own expert, Mark Hildebrand, which compares what each unique water account actually paid against what that account would have paid if the City had not charged the unlawful rates; the Court of Appeal affirmed that method. It originally ran through September 2021, and Plaintiffs retained the same expert to update it through December 1, 2023 using the same methodology. Each overcharged account then gets its calculated refund, proportionally reduced so the total fits the Net Settlement Fund. The agreement also allows Plaintiffs to propose a “floor” refund amount, since very small recoveries may not be administratively feasible to pay out at all.
I rented, or I've moved out of San Diego. Do I still qualify?
Probably yes, if the City water account was in your name during the class period. The class is defined by having been a single-family residential customer of the City of San Diego between August 14, 2014 and December 1, 2023 — it says nothing about owning the property and nothing about where you live now. Refunds are calculated per unique account identifier, so the money follows the account holder of record rather than the current occupant or the landlord. Someone who has since moved to another city or another state is still a class member. People who moved into the City's service area after the original March 2020 class notice went out are included as well; the agreement notes they are the reason the class grew from 319,485 to about 436,069.
Do I need the ID and Passcode from my notice?
Only for the optional step. Getting paid requires nothing from you. But if you want to confirm your contact information or pick a paper check or an electronic payment, the Submit Payment Method page on SDWaterSettlement.com asks for the ID and Passcode printed on your notice — the top-right corner of an emailed notice, or above the name and address on a postcard. If you have lost the notice or never received one and think you should have, call CPT Group at 1-888-903-0334 or email SDWaterSettlement@cptgroup.com rather than assuming you are not in the class.
Can I object and still get my refund?
Yes. The notice is explicit: you can object to the settlement and remain a class member who receives payment. Opting out is the choice that costs you the money. What you cannot do is both — the settlement agreement says any class member who attempts both to object to and to exclude themselves from the class is deemed to have excluded themselves and forfeits the right to object. An objection has to be received by the court, or filed on the docket, by November 12, 2026, and it has to carry a specific set of details: the case name and number, your name and the service address, the property owner's name if that is not you, your contact information, your reasons, any attorney's details plus that attorney's objections to other class settlements in the last five years, whether you intend to appear, and your signature.
When would payments actually arrive?
Not soon, and only if the settlement is approved. The Final Fairness and Approval Hearing is set for December 11, 2026 at 9:00 a.m. PT in Department C-67 of San Diego Superior Court, and the notice warns that date can change without further notice. If the Court approves, the agreement has the Settlement Administrator begin distributing payments within 30 days of the Date of Finality — which arrives only after the window to appeal has closed or any appeal has been resolved. No payment date has been announced. If the Court does not approve the settlement, it is void and the lawsuit continues.
What happens to money nobody collects?
None of it returns to the City. The agreement makes the $40,000,000 a non-reversionary common fund, and says the City is not entitled to retain any part of it that is not paid out, except if the settlement fails outright. Whatever is left when administration is complete goes to a court-approved cy pres recipient instead; the parties proposed, and the Court has approved, the Sierra Club, California Water Committee, including its San Diego chapter.

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