Davis v. City of Blytheville

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Kenyghatta Davis brought a class action complaint against the City of Blytheville and its Water Department, arguing that the Water Department’s charging of late fees on overdue accounts was an ultra vires act because there was no statutory authority allowing the City to impose late fees and that she was entitled to a declaratory judgment finding that the charging of the late fees was usurious and an unreasonable and unconscionable penalty. The circuit court granted summary judgment to the City, concluding (1) the City had expressed, implied, and incidental authority to establish and assess fees for late payments; and (2) Davis failed to offer any legal support for the claim that allowing the Water Department to collect these charges violated the law. The Supreme Court affirmed, holding (1) the City can impose a late fee when there is a violation of the ordinance relating to the payment of a bill; and (2) these late fees are not usurious or an unreasonable or unconscionable penalty. View "Davis v. City of Blytheville" on Justia Law