Frequently Asked Questions: January 2026 Lawsuit Involving Fair Oaks Water District
February 24, 2026
What is this lawsuit about?
A lawsuit has been filed challenging the Fair Oaks Water District’s continued operation at its long-standing property in the Fair Oaks Village. The lawsuit seeks to challenge Sacramento County’s 2022 approval of plans that allow FOWD to upgrade and modernize its existing facilities. The window to challenge the County’s approval closed nearly four years ago.
Who filed the lawsuit?
The lawsuit was filed on January 27, 2026 by Leon Corcos. Mr. Corcos is joined by Keith Walters of the Venture Capital Development Group, acting on behalf of the Fair Oaks Village Enhancement Corporation. Keith Walters is the president, and Leon Corcos is the vice president of the Fair Oaks Village Enhancement Corporation.
Has a similar lawsuit been filed before?
Yes. In 2025, Leon Corcos filed a lawsuit seeking to force FOWD from the same property. Mr. Corcos dismissed that lawsuit voluntarily in the face of FOWD’s then-pending motion to dismiss.
What are the plaintiffs’ allegations?
The plaintiffs allege FOWD’s approved facility upgrades would result in:
- Industrial visual impacts
- Increased truck traffic on village streets
- Increased pedestrian safety risks
- Negative environmental impacts
However, the Sacramento County Planning Commission found there will be no significant environmental impacts from the facility upgrades and determined the project to be exempt from environmental review. Mr. Corcos never challenged this determination, which was made in 2022. Because they want to stop the project from proceeding, the plaintiffs want the court to intervene in what they call “wasteful spending,” a frivolous allegation that is not supported by the law – or by the facts. The plaintiffs also state FOWD’s Board of Directors has violated the Brown Act but fail to allege an actual violation of law. FOWD’s Board has not violated the Brown Act, and the plaintiffs fail to allege a single fact to support and validate this baseless statement, subjecting their lawsuit to dismissal as a matter of law.
Will FOWD’s operations change if the upgrades move forward?
No. The approved upgrades will not change existing operations, which have remained substantially the same for nearly 50 years at the current site and for more than 100 years in the Fair Oaks Village. The upgrades are limited to infrastructure improvements intended to improve efficiency and reliability. Leon Corcos’s and Keith Walters’s desired outcome would result in FOWD operating out of Rancho Cordova, leading to slower responses and increased costs to ratepayers - and, under California law, the existing corporation yard would likely become a low-income, multifamily housing project in the heart of the Fair Oaks Village.
Will the upgrades increase traffic or parking problems in the Village?
No. All current and planned facilities include sufficient on-site parking for employees and customers. FOWD employees and customers do not and will not contribute to the existing parking shortage in the Fair Oaks Village. Again, the County Planning Commission determined the project will have no significant environmental impacts. Further, FOWD allows the public to park in its existing headquarters parking lot in the evenings and on the weekends.
Who represents FOWD in this lawsuit?
FOWD is represented by Ted Wolter, a partner with the law firm Klinedinst PC, a Fair Oaks resident, and Chairman of the Sacramento County Fair Oaks Community Planning Advisory Committee.
What is the status of the case?
FOWD has accepted service of Leon Corcos’s and Keith Walters’s complaint, has served written discovery, and has set dates to depose Leon Corcos and Keith Walters. FOWD also plans to file a motion to dismiss the lawsuit. While the lawsuit purports to raise two causes of action against FOWD, in substance it does not allege a valid claim as a matter of law.
What is the case number?
The lawsuit is identified as Sacramento Superior Court Case Number 26VVM000022.
Will this lawsuit affect my water service?
No. Water service to our valued customers will not be affected by this lawsuit. The District will continue to serve our cusomers without interruption while the matter proceeds through the legal process.
How does this lawsuit impact ratepayers?
The FOWD has used a significant amount of ratepayer money defending the FOWD from meritless lawsuits and other regulatory filings by Mr. Leon Corcos and his surrogates – including this latest filing. Not only does this cost the ratepayers money, but it also disrupts the normal operations of your water agency and its ability to focus on serving you a reliable and quality water supply.
What is FOWD’s position on the lawsuit?
FOWD believes this second lawsuit has no legal merit and anticipates it will be dismissed, similar to the prior lawsuit filed in 2025. The District remains committed to acting in the best interests of its ratepayers while treating all parties with grace and respect.