Since it's hard to tell if the neighbor is overwatering (we don't know, but they may have a very large lot) Although 27K gallons seems quite excessive.
Or if the irrigation system has a leak
Or if the drainage swales are insufficient to remove the excess from your lot.
Or what the neighbor says about all this. What did the neighbor say?
The fact remains that water from their property is causing root rot and killing your lawn and now it needs to be replaced. And the neighbor is unresponsive.
A previous poster mentioned something like, until it hits the neighbor in the pocketbook, nothing will happen.
I agree.
If it were me, I think that at this point, before any lawsuit, I would next hire an attorney to write a well-worded letter explaining the property damage being caused and that it's only getting worse (and more expensive) including a near future lawsuit and a deadline for them to at least respond.
Good luck
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