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Company sues Johnson Utilities over failed land deal

Posted by   /  November 26, 2018  /  No Comments

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By Kevin Reagan | San Tan Valley Sentinel

A company is faulting Johnson Utilities’ poor water service as the cause for its inability to sell property to homebuilders in Pinal County, according to a civil complaint filed in court last week.

CMG 900, a company based in Delaware, is seeking up to $21 million in damages from the embattled utility company after another company pulled out of a land-buy deal earlier this year.

According to the lawsuit filed Friday, Starlight Homes agreed to buy some residential lots in Pinal County owned by CMG for $19 million. But after the homebuilders found out about Johnson’s water and wastewater problems in the area, the plaintiff claims the deal was withdrawn.


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