Coyote Springs Investment, LLC v. State of Nevada (Regulatory Takings Trial Over Groundwater Curtailment)
Coyote Springs Investment, LLC, controlled by California's Seeno family, is trying its regulatory-takings claim against the State of Nevada in a bench trial before Judge Mark R. Denton, alleging the State Engineer's curtailment of groundwater pumping rights destroyed the value of a planned 43,000-home master community roughly 50 miles north of Las Vegas. The first, judge-only phase of the trial began July 8, 2026 and is expected to last months, with a jury to decide damages in a second phase if the developer prevails.
Why it matters
A ruling for the developer would validate takings liability for a state water regulator's ordinary curtailment authority whenever it forecloses a project's economic use, a precedent with sweeping implications for any Western jurisdiction managing over-appropriated groundwater basins amid drought and rising demand from housing and data centers alike.
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