Mistaken Meter Reads Lead To $800,000 Lawsuit

Water consumption is at the center of a giant lawsuit in California.

The city of Poway, in San Diego County, “has sued Palomar Health for up to $800,000 the healthcare district was mistakenly undercharged for city water used by Pomerado Hospital between 2008 and 2015,” The San Diego Union-Tribune reported.

As a result of meter-reading mistakes, the city undercharged for water use over that period, billing for just 10 percent of water use, the report said. The parties initially tried to negotiate a settlement, the newspaper previously reported, but never reached a deal.

How did the mistake occur?

“The error began when a new consolidated meter was installed at the hospital in 2008 and wasn’t discovered until the summer of 2015, then City Manager Dan Singer said. The face of the new meter has six digits,” the Union-Tribune reported.

“Before the new meter was installed, Pomerado Hospital’s water bills averaged $150,000 to $200,000. That dropped to $15,000 to $20,000 with the new five-digit meter,” the report continued.

Becker’s Hospital Review summarized the details of the lawsuit:

The breach of contract lawsuit filed in San Diego Superior Court Dec. 27 says once the error was discovered, the city of Poway requested the payment from Palomar Health. But the lawsuit states, "Defendants refused, and continue to refuse, to make any payment for the water the city actually delivered to Pomerado Hospital," according to the report.

A Palomar Health spokesperson told the Union-Tribune that it does not comment on pending litigation.

Poway Mayor Steve Vaus told the Union-Tribune: “The city made a mistake in reading the meter. However, that doesn’t change the fact that they used the water and they need to pay for the water.”

To read more about metering visit Water Online’s AMR, AMI And Metering Solutions Center.