About 436,069 San Diego single-family water customers are in the City’s $40 million water rate settlement, but only those whose accounts were overcharged under a court-approved formula will get a refund — and some class members will get nothing. No claim form is needed. Refunds go out automatically to overcharged accounts if the court approves the deal after a December 11, 2026 hearing.
Status: Pending final approval | No claim form — refunds are automatic | Opt out or object by November 12, 2026 | Final approval hearing December 11, 2026
Who Is in the Class
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. Customers who moved into the City’s service area after the original class notice went out in March 2020 are included.
The class follows the water account, not ownership of the home. Former customers are included if they were customers during the period, and refunds are calculated per account identifier, so payment tracks the account holder of record.
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 after the class was certified, by the May 30, 2020 deadline.
Why Some Customers Get Nothing
Being in the class does not guarantee a payment. At trial, the court adopted a refund calculation prepared by the City’s own expert. It 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. The plaintiffs had it updated, using the same method, through December 1, 2023, when the City put new single-family residential rates in place. Accounts that come out overcharged under that calculation receive a refund. The notice says some customers were not overcharged under it, and they will not be paid — though they are still bound by the settlement unless they opt out.
The notice says the settlement website shows whether a class member is estimated to receive a refund.
How Big the Refunds Are
No per-customer amount has been published. Each overcharged account receives its calculated refund, reduced proportionally to fit the money in the net settlement fund. That fund is the $40 million minus court-approved costs, which can include:
| Attorneys’ fees | Up to one-third of the fund ($13,333,333.33) |
| Litigation expenses | Up to $500,000 |
| Service awards | Up to $7,500 each for the two class representatives |
| Settlement administration | Expected to be no more than $199,000 |
The agreement lets the plaintiffs propose a minimum payment amount, because very small refunds may not be practical to send. The fund is non-reversionary: none of it returns to the City. Money left after distribution goes to the court-approved recipient, the Sierra Club California Water Committee, including its San Diego chapter.
An Optional Step: Choosing How to Be Paid
Overcharged class members do not have to do anything to be refunded. The notice says class members may be asked to confirm contact details and pick a payment method, and the official San Diego water settlement website offers that through its Submit Payment Method page.
That page asks for the ID and Passcode printed on the notice. On email notices they appear in the top-right corner; on postcards, above the name and address. Use it to choose between a paper check and an electronic payment or to update your contact information. The opt-out form and the long-form notice, which explains how to object, are on the same site.
The Opt-Out and Objection Deadline
| November 12, 2026 — opt out | The opt-out form must be sent to the settlement administrator, CPT Group, Inc., with the class member’s name, contact details and signature. |
| November 12, 2026 — object | A written objection must be received by the court or filed on the case docket, with the case name and number, the service address, the reasons for objecting and the objector’s signature. |
| December 11, 2026, 9:00 a.m. PT | Final fairness hearing, Department C-67, San Diego Superior Court. The date can change without further notice. Class members do not have to attend. |
A class member cannot do both. Anyone who tries to opt out and object 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.
Eleven Years of Litigation
The case is Patz v. City of San Diego, No. 37-2015-00023413-CU-MC-CTL, in the Superior Court of California, County of San Diego. It 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 serving 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. 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 parties then accepted a mediator’s proposal from a retired San Diego Superior Court judge and signed the settlement agreement in July 2026.
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 deciding that question. No court has ruled on whether the City’s current water rates are constitutional.
When Refunds Would Be Paid
Refunds are paid only if the court grants final approval. Under the agreement, the administrator begins distributing payments within 30 days after the settlement becomes final — 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 goes on. No final approval order or payment date had been announced as of October 2, 2026. The San Diego water rates settlement page on OpenClassActions.com tracks the hearing.
Frequently Asked Questions
Do I need to file a claim for the San Diego water rate settlement?
No. There is no claim form. Single-family residential accounts that were overcharged under the court-approved refund calculation will be paid automatically if the settlement receives final approval.
Will every single-family customer get a refund?
No. Only accounts overcharged under the calculation the trial court adopted and the Court of Appeal affirmed receive money. Some class members were not overcharged under that calculation and will get no refund.
How can I see whether I am expected to get money?
The notice says the settlement website shows whether a class member is estimated to receive a refund. Its Submit Payment Method page uses the ID and Passcode printed on your emailed notice or postcard.
I moved out of San Diego. Am I still included?
Yes, if you were a single-family residential water customer of the City at any time between August 14, 2014 and December 1, 2023. Refunds are calculated per account and follow the account holder of record.
What is the deadline to opt out or object?
November 12, 2026. You cannot do both; anyone who tries is treated as having opted out. Opting out means no refund.
When will refunds be paid?
Within 30 days after the settlement becomes final, which can happen only after the December 11, 2026 hearing and the end of any appeals. No payment date had been announced as of October 2, 2026.
Sources
- Official settlement website, important dates and payment method page — SD Water Settlement, administered by CPT Group, Inc.
- Class Action Settlement Agreement and court-authorized notice, Patz v. City of San Diego, No. 37-2015-00023413-CU-MC-CTL, Superior Court of California, County of San Diego.
- OpenClassActions.com — San Diego Water Rates Class Action Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: San Diego Water Rates Class Action Settlement — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.