RCH Wins Judgment in Case Involving Former Manager and H2O Services

Dear RCH Members,

We are writing to share an important update regarding RCH’s suit to recover damages suffered by RCH Water Supply Corporation under the management of Robin Baley and H2O Services. 

Following a trial on October 27th and 28th, 2025, in the 382nd District Court in Rockwall County, the Court ruled in favor of RCH Water Supply Corporation in the case RCH Water Supply Corporation v. Robin Baley d/b/a H2O Services, Cause No. 1-23-1750. 

The Court found that Ms. Baley owed a fiduciary duty to RCH based on her long-standing role managing day-to-day operations, attending board meetings, preparing financial information for the Board, interacting with regulators and vendors, and exercising check-signing authority on behalf of RCH. The Court further found that a “special relationship of trust and confidence” existed between RCH and Ms. Baley for nearly thirty years and that she had a duty of loyalty, fair dealing, and financial accountability to RCH.

In its findings, the Court concluded that Ms. Baley breached her fiduciary duty to RCH, focusing on disbursements to herself from RCH’s checking account totaling $808,098.77. The Court entered judgment in favor of RCH on its breach of fiduciary duty claim and awarded $808,098.77 with interest.

The Board would like to sincerely thank its members for the trust you have placed in the current Board and management to act in the best interests of RCH and its members. This outcome is an important step in holding prior management accountable and in protecting the financial health of your water supply corporation.

The Board of Directors and management remain firmly committed to strong oversight, transparency, and accountability, and to continuing our efforts to safeguard RCH’s assets on behalf of all members.

Kind regards,

David Naylor
RCH Board President