Flooded-out business owners say water district refuses responsibility for water main break

KSL TV

Save Story
KEY TAKEAWAYS
  • Utah businesses in Murray face damage after a water main break over Labor Day.
  • They say Jordan Valley Water initially promised help but later denied responsibility, citing state law.
  • Business owners express frustration as insurance claims are denied without finding negligence.

MURRAY — Several Utah businesses in a Murray complex are trying to get back on their feet after a water main break washed them out. But they said the owner of the pipeline has told them that it's not their problem.

The break happened over the Labor Day weekend, several blocks away. The rupture sent a torrent of water downhill, turning the complex into a lake that wound up devastating three businesses on the lower level — Serenity Haven, Steps Recovery Center and Simplicity Laser.

Repair estimates

Serenity Haven houses at-risk youth and people with disabilities. Steps Recovery Center helps people fight addictions. Simplicity Laser repairs expensive laser hair removal equipment.

Executive directors Jeremiah Davis and James Davis of Serenity Haven show KSL’s Matt Gephardt damage resulting from a water main break in Murray.
Executive directors Jeremiah Davis and James Davis of Serenity Haven show KSL’s Matt Gephardt damage resulting from a water main break in Murray. (Photo: Mark Wetzel, KSL-TV)

"We have lost tens of thousands (of dollars)," said Paul Walkenhorst, who owns Steps Recovery Center as well as the complex itself. "With the tenants, hundreds of thousands in personal property."

Glimmer of hope

When the break happened, the business owners in the complex said Jordan Valley Water Conservancy District, the owner of the ruptured water main, put them at ease.

"When I came on site, there was a representative from Jordan Valley who told me, 'Hey, don't worry. We're going to cover all this. It will all be taken care of,'" said Leeon Jeffs, vice president at Simplicity Laser.

"He said he would take care of this," said Walkenhorst of the same representative. "His company would be responsible for this."

"He said, 'Oh, we'll take care of you. This is our fault. We'll make sure that everything is right," recalled James Davis, executive director at Serenity Haven.

Indeed, the water district did come in and tore out the damage. But then fell silent, said Walkenhorst.

"And then just crickets," he said of the nearly four weeks of silence after the water main break.

Governmental immunity

But then, the three businesses all received identical letters from the Jordan Valley Water Conservancy District's insurance provider informing them that they were on their own.

"'Although we regret this incident occurred, there is no negligence found on our insured,'" read Micah Niles, general manager of Steps Recovery Center, from that letter. "'As a result, we hereby deny your claim which is our final decision.'"

Micah Niles, general manager of Steps Recovery Center, shows KSL’s Matt Gephardt a letter from the water district denying their claim after a water main break in Murray.
Micah Niles, general manager of Steps Recovery Center, shows KSL’s Matt Gephardt a letter from the water district denying their claim after a water main break in Murray. (Photo: Mark Wetzel, KSL-TV)

"How is it my fault if it's a water main six blocks east of us?" asked Walkenhorst.

"It's their pipe," said Michael LeBaron of Simplicity Laser, "so, it seems like it should be their fault."

I reached out to the Jordan Valley Water Conservancy District. It refused to answer any questions on camera. But in a statement — in not so many words — it wrote the business owners who were flooded out by the water main break told me things that are not true.

"Jordan Valley Water Conservancy District cannot get into the specifics of a claim, other than to deny the allegations and characterization you have conveyed to us in your email," a spokesperson wrote.

Well, the only thing I conveyed in that email is that the property owners said they were told their situation would be handled.

As to why the district won't handle making the flooded-out owners whole, the spokesperson wrote it is protecting "taxpayer funds."

Also, it doesn't have to!

In a statement, the Jordan Valley Water Conservancy District tells KSL that state law dictates it has no legal liability for damages from a water main break.
In a statement, the Jordan Valley Water Conservancy District tells KSL that state law dictates it has no legal liability for damages from a water main break. (Photo: Nathaniel Gillis, KSL-TV)

"State law dictates — and the courts have affirmed," it has no "legal liability," said the letter. In it, the district went onto to say that it provided, "immediate mitigation as a courtesy despite the absence of any legal liability."

"I just wish that they took responsibility," said Jeremiah Davis, executive director at Serenity Haven.

Crummy as it is for these business owners, state law is indeed on the water district's side. As I have reported before, unless you can demonstrate that a government agency was negligent in a water main break, you're usually on your own.

"There's right and wrong," said Niles. "And this feels very wrong."

Each business has its own insurance, which would likely cover a flood had the water come up through a drain. But, if a flood originates from outside the business, the resulting damage claims would likely not be covered.

The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.

Most recent Business stories

Related topics

Matt Gephardt, KSLMatt Gephardt
You might say that Matt Gephardt was born into journalism. On the day he arrived at the Indiana hospital, his father, a reporter, had to quickly rush away after the delivery in order to front a news report. Matt’s television debut came a few years later when, as a toddler, he was used by an Indianapolis reporter to demonstrate how prescription drugs can be mistaken for candy. Matt’s “professional” career in the business began when he was 17 years old, attending high school in Los Angeles, and he landed a summer-job as a teleprompter operator in the Salt Lake City market. He moved to Utah, enrolled at the University of Utah, and never looked back. In the more than 20 years since, Matt has worked virtually every newsroom job: production crew, video editing, video photography, producing, executive producing. In 2010, Matt made the jump in front of the camera as an investigative “watchdog” reporter. Matt’s reporting has not only earned him several journalism awards, it has also led to law and policy changes at local, state and federal levels. When not investigating on behalf of Utah consumers, Matt enjoys “urban hiking” with his wife and three children – setting out on foot towards Sugarhouse or Downtown hoping to run into a friendly group of people gathered at a park, a festival or a new store or restaurant to try out. Matt is absolutely thrilled to be working at KSL where the commitment to ethical journalism, fairness and community is in lockstep with his own ideals.

STAY IN THE KNOW

Get informative articles and interesting stories delivered to your inbox weekly. Subscribe to the KSL.com Trending 5.
By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Notice.
Newsletter Signup

KSL Weather Forecast

KSL Weather Forecast
Play button