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Developments in ongoing CCN Decertification Litigation

Posted By Trent Hightower, Thursday, December 20, 2018

TRWA members Crystal Clear SUD and Green Valley SUD each received positive rulings from Federal courts in their ongoing CCN decertification cases based on their federal debt under 7 U.S. Code Sec. 1926(b).

In Crystal Clear's case against the Public Utility Commission (PUC), United States Magistrate Judge Andrew Austin recommended that the PUC's final order granting decertification be declared void, and that Texas statutes directing state courts to ignore federal debt in decertification cases be declared void and pre-empted by federal law. We must now wait for U.S. District Judge Lee Yeakel's ruling to see whether he adopts the magistrate judge's recommendations.

Meanwhile, Green Valley SUD prevailed in a ruling by U.S. District Judge Sam Sparks. However, Judge Sparks did not declare the same provisions of state law to be pre-empted by federal law as TRWA members would have hoped. Instead, the judge found that the PUC had interfered with GVSUD's exclusive right to serve without considering the issue of the utility's federal indebtedness.


Read more about each of these cases by viewing the documents attached below. 

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