Apples, Oranges, Covid-19, Corporations and Governmental Entities

The water company haters continue to confuse people in our neighborhood with the fiction that our water corporation is a governmental entity. It’s not.

On NextDoor last week they were pressuring the water company for in-person meetings. They said in-person meetings are occuring at the Lakeway City Council and Burnet Commissioners’ Court.

The City of Lakeway and Burnet County are governmental organizations which have “sovereign immunity,” which means they can’t easily be sued or held liable.

Our neighborhood non-profit water corporation is not a governmental organization and as such does not enjoy the privileges of “sovereign immunity.” The corporation can be sued (and has been by a small group of people in the neighborhood in the last few years).

Nationwide there are Covid-19 related suits of all sorts being filed against companies. Learn more here, here, here and here. Why do the water company haters want the water company to take the risk?

Liability insurance and general business insurance will not likely cover the water company in the event that someone were to get sick, become grievously harmed, and allege that the they were contaminated at a water company meeting. Even if all the Covid-19 guidelines issued by national, state and county health organizations were followed, a lawsuit could happen.

Were a lawsuit to occur the water company insurance company would not likely even cover litigation related to that suit, which means the water company — and ultimately its members — would have to pay for litigation costs — or settle. That settlement money would also come directly from water customers.

The water company’s open meetings on Zoom have been great and safe. They protect the water company from liability issues in this Covid-19 era. And they continue to be allowed by act of the Governor.

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