Justia Utilities Law Opinion Summaries

Articles Posted in Kentucky Supreme Court

At issue was whether the former Mayor of the City of Audubon Park and individual members of the City Council were personally liable for excess sanitation funds generated by a monthly assessment for the stated purpose of paying for sanitation services that was not devoted to trash collection and recycling but had been spent for other municipal purposes. The circuit court dismissed this action, brought by a taxpayer pursuant to section 180 of the Kentucky Constitution and Ky. Rev. Stat. 92.330 and 92.340, for failure to state a cause of action due to lack of injury to the City. The court of appeals reversed, concluding that Defendants were liable for the excess sanitation funds. The Supreme Court affirmed in part, reversed in part and remanded, holding (1) the complaint stated a cause of action because the statutes prohibit the use of the sanitation tax revenue for other non-sanitation purposes; but (2) liability was not absolute if the individuals who acted on behalf of the City could establish that the tax revenue was spent for valid City obligations. View "Scalise v. Sewell-Scheuermann" on Justia Law