California water-rights firms claim state denied due process in Ninth Circuit case

In Reno, three California water-right holders challenged the State Water Resources Control Board before a three-judge Ninth Circuit panel, asserting that the agency’s curtailment orders were legislative actions that denied them a due-process hearing and compensation. The companies—Los Molinos Mutual Water Company, Stanford Vina Ranch Irrigation Company and Peyton Pacific Properties—manage diversions on Mill and Deer creeks that serve about 11,000 acres of agricultural land.

Their counsel, Jackson Minasian, noted that the state has halted the diversions four times since a 2021 drought emergency declared by Governor Gavin Newsom and warned that similar orders will recur. Judges Danielle Forrest, Lawrence VanDyke and John Owens listened to the arguments but did not issue a decision. Deputy Attorney General Margaret Tides maintained that curtailments are legislative and therefore do not require a hearing, though the companies may still seek compensation in state court.