Justia Utilities Law Opinion Summaries

In this class action, the Supreme Court reversed the circuit court's judgment that certain sanitation fees constituted an illegal exaction and that the City of Fort Smith was unjustly enriched because the class paid money expecting to receive recycling services, holding that the circuit court clearly erred.Plaintiff, on behalf of the citizens and taxpayers of Fort Smith (class), brought this action against the City after discovering that Fort Smith was dumping almost all of its recyclables in a landfill, claiming that Fort Smith's collection of monthly sanitation charges, including recycling fees, was an illegal exaction and that the City had been unjustly enriched. The Supreme Court reversed and dismissed the action, holding (1) because Fort Smith used the sanitation fee to collect and dispose of sanitation, the circuit court's finding that the fee was an illegal exaction was clearly erroneous; and (2) the damages evidence Plaintiff presented was not a valid measure of restitution. View "City of Fort Smith v. Merriott" on Justia Law

The Supreme Court affirmed in part and dismissed in part the order of the circuit court certifying the City of Gurdon's class-action lawsuit alleging that Suddenlink Communications unlawfully charged Gurdon and other cities in the state three fees for the cities' use of Suddenlink's services, holding that there was no error.Suddenlink, which provided telephone, internet, and cable services to Gurdon, assessed a 911 fee, an Arkansas High-Cost Fund Fee, and a franchise fee. Gurdon brought this action alleging that the imposition of the fees against the City was unlawful. Gurdon then filed a motion for class certification. The circuit court granted the motion. Suddenlink appealed the certification as well as the circuit court's refusal to first address Suddenlink's pending motion to compel arbitration before certifying the class. The Supreme Court dismissed in part and affirmed in part, holding (1) the arbitration issue was not appealable on an interlocutory basis; and (2) the circuit court did not abuse its discretion by certifying the class. View "Altic USA, Inc. v. City of Gurdon ex rel. Honorable Kelley" on Justia Law

The Supreme Court dismissed this appeal stemming from an illegal-exaction case challenging whether a court-ordered annual service fee charged to customers by Ozark Mountain Solid Waste District to repay Ozark Mountain's creditors is statutorily or constitutionally permitted, holding that the order was not a final order.Specifically, the Supreme Court held that the order in this illegal exaction case was not a final, appealable order because it contemplated further action by the parties and the circuit court. Further, the record demonstrated that the Attorney General did not seek a Rule 54 certificate to certify the issues presented for appeal. Because the order was not a final order, the Supreme Court dismissed the appeal. View "Ozark Mountain Solid Waste District v. JMS Enterprises, Inc." on Justia Law

In 2013, the Kanis and Denny Roads Suburban Water Improvement District No. 349 of Pulaski County (the District) reassessed Southwest Power Pool, Inc.’s (SPP) commercial facility, an improvement on its property that is connected to the City of Little Rock’s waterworks system, which resulted in an annual levy of $60,653. The District’s board of equalization confirmed the reassessment. SPP then filed a complaint in circuit court, arguing that the reassessment was wrong as a matter of law and of fact. The circuit court largely granted the District’s motion for summary judgment, and, following a bench trial on the issue of the sufficiency of the 2013 notice of reassessment, the circuit court granted final judgment in favor of the District. The Supreme Court reversed, holding that SPP’s facility cannot be assessed, and accordingly, the 2013 reassessment, and the subsequent reassessments, are invalid. View "Sw. Power Pool Inc. v. Kanis & Denny Roads Suburban Water Improvement Dist. No. 34" on Justia Law

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