San Diego $40 Million Water Settlement, Who Gets Refunds, How Much and When

San Diego has agreed to pay $40 million to settle a class action over the water rates it charged single-family homes between August 14, 2014, and December 1, 2023. Refunds are automatic, so there is no claim form. But not every customer in the class will get money.

The case is Patz v. City of San Diego. The courts found that the city’s tiered residential water rates were not proportional to the cost of providing service, which Proposition 218 requires. The city still denies that it overcharged anyone or that any money is owed.

The deadline to opt out or object was November 12, 2026, and it has passed. The next step is the final approval hearing on December 11, 2026, at 9 a.m. Pacific Time. No payment date has been announced.

You can see whether you are estimated to receive a refund, and pick how you want to be paid, on the official site: SDWaterSettlement.com.

San Diego Water Settlement: Quick Facts

Detail	Information
Lawsuit	Patz v. City of San Diego
Case number	37-2015-00023413-CU-MC-CTL
Court	San Diego County Superior Court
Defendant	City of San Diego
Settlement amount	$40,000,000
Class period	August 14, 2014 – December 1, 2023
Who is in the class	Single-family residential water customers of the City of San Diego
Who gets paid	Class members who were overcharged under the court-approved calculation
Claim form	Not required
Opt-out and objection deadline	November 12, 2026 (passed)
Final approval hearing	December 11, 2026, 9 a.m. PT, Department C-67
Payment date	Not announced
Administrator	CPT Group, Inc.
Phone and email	1-888-903-0334, [email protected]

Why Did San Diego Face a Water Rate Lawsuit?

San Diego charged single-family customers on a tiered system: a lower price for the first units of water and higher prices as use went up. Tiers are not automatically illegal in California. But Article XIII D, Section 6 of the state constitution, added by Proposition 218, says a property-related charge cannot exceed the proportional cost of serving the property, and in a legal challenge the agency has the burden of showing it complied.

The plaintiffs argued the city’s tiers were not tied to its real costs. After a trial, the court agreed. The settlement notice says the court decided the city had charged single-family customers under an unconstitutional rate structure, and that the Court of Appeal affirmed the refund calculation. The Court of Appeal’s opinion, Patz v. City of San Diego, 113 Cal. App. 5th 225 (2025), came from a divided panel.

The ruling does not say that charging more for heavy water use is always unconstitutional. It says San Diego did not justify these rates.

Who Qualifies for the San Diego Water Settlement?

You are in the class if you were a single-family residential customer of the City of San Diego at any point between August 14, 2014, and December 1, 2023. The notice says no response is needed to be part of the settlement.

Being in the class and getting paid are two different things. The notice says only customers who were overcharged under the court-approved calculation receive a refund.

Can renters get a San Diego water settlement refund?

Eligibility follows the customer relationship with the city, not just who owns the house. A renter who held the city water account may be included, and the notice’s objection instructions even ask non-owners to name the property owner. A tenant whose landlord held the account should not assume rent payments alone qualify. Ask CPT Group to check who the account holder of record was.

What if you sold your home or moved away?

You do not need to own the house or live in San Diego now. What matters is that you were a qualifying customer during the class period and were overcharged under the calculation. Contact the administrator with your old service address if you did not get a notice.

Who is not covered?

Customers of other water districts are not part of this class just because they live in San Diego County. Apartment tenants on a master-metered account are not automatically individual single-family customers. Service that began after December 1, 2023, is outside the class period.

How Much Will San Diego Water Customers Receive?

There is no flat amount. The $40 million is a common fund. Court-approved fees and costs come out first, and the rest is divided among customers who were overcharged, based on each customer’s share of the net fund.

The settlement notice lists these requests, all subject to court approval:

Item	Amount
Attorneys’ fees	Up to $13,333,333.33
Litigation expenses	Up to $500,000
Settlement administration	Expected to be no more than $199,000
Class representative awards	$7,500 for each of the two representatives

If every one of those were approved at the maximum, about $25.95 million would be left for customers. That is simple arithmetic, not an approved distribution figure.

How is each customer’s refund figured?

The notice says the court used a refund method from the city’s own expert, which the Court of Appeal affirmed. It compares what each customer actually paid with what that customer would have paid if the city had not charged unlawful rates. A customer who paid more than that comparison was overcharged. A customer who did not gets nothing under the settlement.

The notice does not say which customers are most likely to come out with no overcharge. Light water users, who paid the lowest tier prices, may be the likeliest, but check your own estimate rather than assuming. Everyone in the class, whether paid or not, also benefited from the city changing its rates after the ruling.

How to Check Your San Diego Water Refund Without Filing a Claim

1. Go to SDWaterSettlement.com.
2. Find the CPT ID and Passcode on the notice you received.
3. Log in to see whether you are estimated to receive a refund.
4. Confirm your contact information and pick a payment method, such as a paper check or an electronic option.

If you lost your notice or never got one, email [email protected] or call 1-888-903-0334. Enter personal details only on the official site. Automatic payment programs like this one run differently from claim-form settlements, as in the Midland Credit Management Debt Collection Class Action Lawsuit Settlement, Payments & Deadlines, which also used CPT Group.

When Will San Diego Water Settlement Payments Be Sent?

No date has been announced. The court must first decide on final approval at the December 11 hearing. The notice says payments will only be made if the court approves, and that the hearing date can change, so check the official site before relying on it. Payments also usually wait until a settlement becomes final, including any appeal period.

If the court does not approve the settlement, or the parties end it, the notice says it will be void and the lawsuit will continue.

Why Did San Diego Settle for $40 Million?

The trial court entered a judgment of about $79.5 million in March 2022, and it kept growing while the case was on appeal. In 2025 the Court of Appeal affirmed the refund award but sent the case back to the trial court to decide how a new law, Senate Bill 1072, applies to it. That law, now Government Code section 53758.5, generally requires an agency to credit amounts tied to an unlawful fee against future revenue unless a statute says refunds must be paid. The settlement notice says the trial court had not yet decided how it applies.

That open question put the cash refunds at risk. The city council voted 6–1 in closed session on April 20, 2026, to accept a mediator’s $40 million proposal, according to the city’s closed session report.

Will San Diego Water Bills Change in January 2027?

Yes, and not everyone will pay less. The city council approved a new rate structure on October 27, 2026, by a 6–2 vote, to comply with the ruling. Starting January 1, 2027, every customer class pays one price per unit instead of tiers.

Single-family usage (per bimonthly period)	Previously adopted 2027 rate per HCF	New 2027 rate per HCF
First 10 HCF	$9.75	$11.09
11–22 HCF	$10.88	$11.09
Above 22 HCF	$13.62	$11.09

One HCF is about 748 gallons. The monthly base charge for a standard residential meter moves from $40.69 to $40.97 in the city’s notice. Local reporting says the change cuts bills for apartment buildings and raises them for most single-family homes. Your own bill depends on how much water you use. Getting a settlement refund for past years does not mean future bills will be lower.

Can You Sue San Diego Again Over These Water Rates?

Not if you stayed in the settlement. The notice says that if you do nothing you are bound by the release and cannot start or join another lawsuit against the city over the issues in this case. The deadline to opt out and keep that right was November 12, 2026. The release covers the issues in this case, not every possible water-bill dispute. The full terms are on the settlement website.

What Happens at the December 11 Hearing?

The judge decides whether to give final approval, considering the fairness of the settlement and any objections. The hearing is at 9 a.m. at the San Diego Superior Court, Hall of Justice, Fourth Floor, Department C-67, 330 W Broadway, San Diego, CA 92101. You do not have to attend to stay eligible. Do not call the court with questions. Contact the administrator instead.

What Happens to Money Nobody Collects?

Leftover money after the process goes to a court-approved recipient. The notice names the Sierra Club California Water Committee, including its San Diego chapter. It does not go back to the city.

San Diego Water Settlement FAQ

Is the San Diego $40 million water settlement real?

Yes. It is a class settlement in Patz v. City of San Diego, Case No. 37-2015-00023413-CU-MC-CTL. It still needs final court approval.

Does every San Diego homeowner get a refund?

No. Only class members who were overcharged under the court-approved calculation are paid.

Do I need to file a San Diego water settlement claim?

No. You can confirm contact details and choose a payment method on the official site, but no claim form is required.

What is the San Diego water settlement claim deadline?

There is no claim deadline. November 12, 2026, was the deadline to opt out or object. Some older third-party pages show earlier September dates; the notice gives November 12.

How do I find out if I am owed a refund?

Log in at SDWaterSettlement.com with your CPT ID and Passcode, or call CPT Group at 1-888-903-0334.

When will the settlement pay out?

No date has been announced. It depends on final approval at the December 11 hearing.

What if I moved away before 2026?

You can still qualify if you were a single-family customer in the class period and were overcharged.

Why did San Diego lose the case?

The courts found the city had not shown its tiered single-family rates were proportional to the cost of service, as Proposition 218 requires.

Are San Diego’s current water rates unconstitutional?

The notice says there has been no court decision on the city’s later single-family rates. The city adopts a new unitary rate structure on January 1, 2027.

Is the refund taxable?

The notice does not give tax guidance. Ask a qualified tax professional about your situation.

Bottom Line on the San Diego Water Settlement

San Diego’s $40 million settlement could send automatic refunds to single-family customers who were overcharged during 2014–2023. There is no claim form and no claim deadline, but a refund is not guaranteed for everyone in the class. The next date to watch is the December 11, 2026 hearing. For another automatic government refund, see Cleo AI FTC Refund, $15.8 Million Going to 2,124,796 Customers – Eligibility, Payment Dates and How to Get Paid.

Official Contacts and Sources

Settlement Administrator: CPT Group, Inc., P.O. Box 19504, Irvine, CA 92623, 1-888-903-0334, [email protected]

• Official San Diego Water Settlement Website
• Court-Authorized Long Form Settlement Notice (PDF)
• Court of Appeal Opinion, Patz v. City of San Diego
• City of San Diego: Water Rate Adjustments
• City Council Closed Session Report, April 20, 2026 (PDF)

Update log

• November 13, 2026: Initial publication. Opt-out and objection deadline passed; final approval hearing December 11, 2026; no payment date announced. This page will be updated after the hearing.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the court-authorized long form settlement notice, the City of San Diego’s rate and closed session records, and the Court of Appeal opinion, as of November 13, 2026. Last Updated: November 13, 2026.

This article is for informational purposes only and does not constitute legal advice. Laws vary by state and individual circumstances differ. For advice about your specific situation, consult a qualified attorney.