A federal judge Wednesday rebuffed a bid by the family trust that owns Johnson Utilities to block state utility regulators from taking control of the water and sewage company.
The judge said it would be one thing if the Arizona Corporation Commission were taking ownership of the company from the George H. Johnson Revocable Trust. Rather, the judge said the commission would give control of the operations to another entity — and it’s only temporary.
The judge did say she would give Johnson’s attorney a chance to prove that court intervention is necessary. But absent new evidence, she would dismiss the case.
There are also lawsuits filed both by the commission and Johnson’s children. The outcome of those suits could determine whether the commission has the legal right to replace the management of any utility company based on allegations the public is not being served.
