Atascadero could pay homeowner up to $450,000 for 2023 winter storm damage
A jury found the city of Atascadero to be partly liable for the damage caused to a local family’s property during the 2023 winter storms that forced them to permanently leave their home — but the blame was also split with the homeowner himself.
The city could now pay up to $450,000 to the homeowner — half of what he sued for — due to the jury’s finding that liability was shared.
In March 2023, Aaron Spiller’s home at 1210 San Ramon Road was red-tagged and deemed unsafe to occupy after heavy rainfall flooded Graves Creek, which bordered the property, eroding the creek bank so much so that it threatened the foundation of his house.
In September of the same year, Spiller filed a lawsuit alleging the city was responsible for the property damage because it failed to properly maintain the creek during the particularly heavy rain season.
Spiller and his family have not been able to return to the home since and foreclosed on the property this fall.
“While the city is disappointed that the jury found the city partly liable for damage to the Spiller property precipitated by a once-in-a-generation weather event over which the city had no control, the city is pleased that the jury also concluded that the Spillers were equally responsible for the damages by failing to take action to timely report the matter to the city,” Dave Fleishman, Atascadero’s attorney, told The Tribune over email.
Michael Haupt, Spiller’s attorney, disagreed with the jury’s assignment of any responsibility to the homeowner.
“Mr. Spiller did not know that the city owned this portion of Graves Creek until after the damage occurred,” Haupt told The Tribune over email. “Nevertheless, we are pleased with the outcome and are looking forward to the city finally compensating Mr. Spiller and his family for the harm it has caused.”
Why did an Atascadero homeowner sue the city?
The root of the Spillers’ problems can be traced to a downed oak tree that fell into Graves Creek in January 2023. Though aware of the tree, neither Spiller nor his neighbors notified the city of its existence at the time.
By March, the swollen creek had pushed the tree downstream, and it lodged in the embankment adjacent to the Spillers’ property.
Storm debris trapped by the tree then created a dam that diverted the flow of the river directly toward the Spillers’ property, causing the water to eat away significantly at his backyard.
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On March 10, 2023, Spiller immediately emailed the city asking for help, but the city did not act to remove the tree until over a week later, after a series of back-and-forth communications over how to deal with the situation and who bore responsibility.
By then, a “catastrophic degree of damage had already occurred and there was no saving the Spiller property,” court documents said. The home was red-tagged, forcing the Spiller family to evacuate.
He sued the city in September 2023, and the two-week trial began on Dec. 3 at the Paso Robles branch of San Luis Obispo Superior Court.
The jury reached a verdict last Wednesday, finding that the city was liable for creating a nuisance and a dangerous condition on the property, Haupt said.
But the jury also found Spiller partly liable for not notifying the city of the downed tree in January when he first learned of it.
“The city continues to believe that this case is one that could have been reasonably settled prior to trial, and the jury’s conclusion that both the city and the Spillers are equally liable reinforces that belief,” Fleishman said.
How much must Atascadero pay homeowner?
The trial was bifurcated, meaning the jury was not asked to award damages. Damages will be decided in the next phase of trial by another jury or by Judge Michael Kelley.
Spiller had bought the home in 2010 for $390,000, and refinanced it in 2020 with a $416,000 mortgage. Originally, the lawsuit sought $900,000 for the cost to repair the property, but since Spiller no longer owns the home, he instead sued for the same amount for the cost and emotional distress of losing the property.
Any determination of damages will be cut in half by the jury’s finding of split responsibility, Haupt said, meaning the most Spiller may receive is $450,000
The next court date is Jan. 23, where the avenue for awarding damages will be discussed.
“The city will continue to work to minimize the impact to the taxpayers from this litigation as it proceeds to the next phase of determining the extent of the damages recoverable,” Fleishman said.
Spiller did not respond directly to The Tribune’s request for comment.
This story was originally published December 24, 2025 at 12:04 PM.
