City of San Diego single-family residential water customers from August 14, 2014 to December 1, 2023 who were overcharged under the court-approved refund calculation will be paid automatically from the City of San Diego’s $40 million water rate class action settlement; there is no claim form to file. The deadline to opt out or object is November 12, 2026, and the final approval hearing is set for December 11, 2026.
Current Status
There is no claim form. Single-family residential customers who were overcharged under the court-approved refund calculation will be paid automatically if the settlement is approved. The deadline to opt out or object is November 12, 2026. The final approval hearing is scheduled for December 11, 2026 at 9:00 a.m. PT; no final approval order or payment date had been announced as of October 2, 2026. Class members can optionally confirm their contact details and choose how they want to be paid on the settlement website.Free settlement alerts
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What Changed Recently?
The City of San Diego agreed to pay $40 million to settle Patz v. City of San Diego, a class action over the water rates the City charged single-family residential customers. The settlement agreement was signed in July 2026, after the parties accepted a mediator’s proposal from a retired San Diego Superior Court judge, and notice is now going out to class members.The case was filed in July 2015. The plaintiffs claim the City’s single-family residential water rates were unconstitutional because they were not proportional to the cost of providing water service to those customers. The court certified the class in August 2019 and, after a bifurcated trial, entered judgment for the class on March 30, 2022. The City appealed, and the plaintiffs cross-appealed over the size of the refund. The City put new single-family residential water rates in place on December 1, 2023. On July 30, 2025, the Court of Appeal affirmed the judgment in a published opinion, with directions, and sent the case back to the trial court.
The City denies that it overcharged any class member or that any refund is owed, and the settlement is not an admission that it owes money. According to the notice, the court had not yet decided how a newer state law, Government Code section 53758.5 (added by Senate Bill 1072), applies to the refund award. The settlement resolves the case without that question being decided. No court has ruled on whether the City’s current water rates are constitutional.
Who Qualifies?
The settlement class is every single-family residential customer of the City of San Diego who received water service at any time between August 14, 2014 and December 1, 2023. The settlement agreement estimates the class at about 436,069 people. That includes customers who moved into the City’s service area after the original class notice went out in March 2020.Excluded are City of San Diego officers and directors, class counsel, the assigned judge and that judge’s immediate family and judicial staff, and the 1,068 people who opted out of the class after it was certified, by the May 30, 2020 deadline.
Being in the class does not guarantee a payment. Only class members who were overcharged under the court-approved refund calculation receive money. The notice says some customers were not overcharged under that calculation, and they will not receive a refund.
How Much Can You Get?
No per-customer amount has been published. Each refund is a share of the net settlement fund, which is the $40 million minus court-approved costs. Those costs can include:- Attorneys’ fees of up to one-third of the fund ($13,333,333.33)
- Litigation expenses of up to $500,000
- Service awards of up to $7,500 each for the two class representatives
- Settlement administration costs, expected to be no more than $199,000
The refund is sized per water account. At trial, the court adopted a calculation prepared by the City’s own expert, which compares what each account actually paid with what it would have paid without the challenged rates. The Court of Appeal affirmed that method. The calculation originally ran through September 2021, and the plaintiffs had it updated, using the same method, through December 1, 2023. Each overcharged account then receives its calculated refund reduced proportionally to fit the money available in the net fund. The agreement also allows the plaintiffs to propose a minimum payment amount, because very small refunds may not be practical to distribute.
The fund is non-reversionary, so none of it goes back to the City. Money left over after distribution goes to a court-approved recipient, the Sierra Club California Water Committee, including its San Diego chapter.
What Proof or Notice ID Is Required?
None to be paid. There is no claim form, and overcharged class members do not need to submit anything to receive a refund. The notice says class members may be asked to confirm their contact information and pick a payment method, and the settlement website offers that as an optional step.That optional step does require a credential: the Submit Payment Method page asks for the ID and Passcode printed on the notice. Email notices show them in the top-right corner, and postcard notices show them above the name and address. The notice says the website also shows whether a class member is estimated to receive a refund.
What Is the Deadline?
There is no claim deadline. The two deadlines are for class members who want out of the settlement or want to challenge it:- Opt out: the opt-out form must be sent to the settlement administrator by November 12, 2026. It must include the class member’s name, contact details and signature.
- Object: a written objection must be received by the court, or filed on the case docket, by November 12, 2026. It must include the case name and number, the service address, the reasons for the objection and the objector’s signature.
A class member cannot both opt out and object. Anyone who tries to do both is treated as having opted out. Opting out means no refund, but it keeps the right to bring a separate case against the City over the same issues.
How Do You Take Action?
Overcharged class members who want a refund do not need to do anything. To confirm contact details or choose between a paper check and an electronic payment, use the Submit Payment Method page on the official San Diego water settlement website with the ID and Passcode from the notice. The opt-out form and the long-form notice, which explains how to object, are on the same site.What Happens Next?
The court will hold the final fairness hearing on December 11, 2026 at 9:00 a.m. PT in Department C-67 of San Diego Superior Court. The hearing date can change without further notice, so check the settlement website before attending. Class members do not have to attend.Refunds are paid only if the court grants final approval. Under the agreement, the administrator starts distributing payments within 30 days after the settlement becomes final, meaning after the time for appeals runs out or any appeal is resolved. If the court does not approve the settlement, it is void and the case continues.
Sources and Verification
- Official settlement website (SD Water Settlement): home page, Important Dates and Court Documents pages
- Class Action Settlement Agreement and court-authorized notice, Patz v. City of San Diego, No. 37-2015-00023413-CU-MC-CTL
- San Diego Superior Court eCourt public portal, case 37-2015-00023413
This page is informational and is not legal advice.
Questions
Will every San Diego single-family water customer get a refund?
No. Every single-family residential customer from August 14, 2014 to December 1, 2023 is in the class, but only accounts that were overcharged under the refund calculation the trial court adopted and the Court of Appeal affirmed receive money. Class members who were not overcharged under that calculation get no refund, though they are still bound by the settlement unless they opt out.
How can a class member find out whether they are expected to receive a refund?
The notice says class members can visit SDWaterSettlement.com to see whether they are estimated to receive a refund. The site’s Submit Payment Method page uses the ID and Passcode printed on the emailed notice or postcard.
Does a renter or someone who moved out of San Diego qualify?
The class is defined by the water account, not by property ownership: it covers single-family residential customers of the City of San Diego who received water service at any time between August 14, 2014 and December 1, 2023. Former customers are included if they were customers during that period. Refunds are calculated per account identifier, so payments track the account holder of record.
Who was excluded from the San Diego water settlement class?
City of San Diego officers and directors, class counsel, the assigned judge and that judge’s immediate family and staff are excluded. So are the 1,068 people who opted out after the class was first certified, by the May 30, 2020 deadline. Those people were not affected by the settlement and do not receive refunds from it.
What happens to money that is not paid out?
The fund is non-reversionary, so none of it returns to the City. Money left after distribution goes to a court-approved cy pres recipient. The notice names the Sierra Club California Water Committee, including its San Diego chapter.
