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Law360 (August 22, 2016) A California appeals court on Thursday upheld a lower court's decision that the California American Water Co. and the Monterey County Water Resources Agency can void their deal with the Marina Coast Water District to build a $400 million desalination plant after an official of the Monterey agency was convicted of corruption. In Thursday’s ruling, a three-judge panel for California’s First Appellate District rejected Marina’s argument that any challenge to the desalination plant contract is barred by a 60-day time limit to bring a challenge under the state’s validation statutes, which set forth a procedure for determining the validity of agency actions. California American Water and the Monterey County agency argued that the contract was void under Gov. Code section 1090, a separate law dealing with conflict-of-interest issues with a longer, four-year statute of limitations. California American Water is represented by Robert R. Moore of Allen Matkins Leck Gamble Mallory & Natsis LLP.
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