Municipal Service Overcharges
The City of Oak Park, Michigan is having to pay a sizeable settlement in the settlement of a class action alleging that the city mischarged residents for water and sewer services. The complaint alleged that two components of the city’s charges are unfair: a Kuhn Facility debt service charge and a storm water disposal charge.
The city of Detroit, Michigan has agreed to set aside nearly $30 million to settle a class action alleging that its Water and Sewerage Department imposed disproportionate drainage charges on a particular subset of the city’s property owners. The complaint in the case claimed that the charges were made to raise revenue and did not reflect the actual cost of providing drainage.