Maricopa County settles old dam-break, flooding suit

Gillespie Dam
Gillespie Dam

More than a dozen landowners along the Gila River sued then-owners of the Gillespie Dam and the Maricopa County Flood Control District over flooding on their property that occurred when the dam broke in 1993.

Heavy rains caused the Gila River to overflow and breach the dam, located southwest of Phoenix, causing water and sediment to flow south onto downstream farm land..

Maricopa County now has paid out $23.7 million to settle one of the longest-running lawsuits in recent county memory.

The lawsuit filed by farmers grew into a web of legal disputes, mainly regarding who should be held responsible for indemnity paid to the landowners and how much should be paid. The case landed in the state Supreme Court after years in the Court of Appeals. The high court denied the county’s petition for review and ordered the county to pay to indemnify the farmers.

Maricopa County has spent $7.1 million on outside counsel to litigate the case.

However, there is one final component of the dispute that may cost the county more money: the interest rate.

The court judgment imposes a 10 percent interest rate, but statutory changes since then lowered the interest rate on judgments to 4.5 percent. The interest dispute likely will be heard in Maricopa County Superior Court.

Information from The Arizona Republic 

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