Water District Shorted by Federal Government May Recover Expectancy Damages

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A federal appellate court may have made it possible for water purveyors to collect additional damages from the U.S. Bureau of Reclamation when water deliveries are shortened due to an inexcusable breach of contract. The decision, handed down Aug. 1, is a big win for the small Central San Joaquin Water Conservation District.

The amount of damages to be paid is yet to be determined; however, the Sacramento Bee reported that it could be millions more than the trial court’s initial damages award.

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