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Cadiz Files Claim Against MWD

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Cadiz Inc. filed an administrative claim accusing the Metropolitan Water District of Southern California of violating terms of their joint venture last fall when it refused to proceed with a water storage project on Cadiz property.

That project would have brought Cadiz as much as $1 billion in revenue. In its claim filed Monday, Cadiz said MWD’s refusal to complete an environmental impact report limited its ability to revive the project with an alternative partner, and now owes the Santa Monica company $1.75 million in damages “as well as millions in other costs ... and the value of the joint venture itself.” MWD spokesman Adan Ortega said the agency’s actions were proper. Cadiz declined to comment.

After MWD voted down the water project Oct. 8, Cadiz had six months to file a claim for damages. Because MWD is a public agency, such a claim must first be rejected before Cadiz can file suit in court.

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