City of Detroit Sues Highland Park for Unpaid Water and Sewer Bills, Seeks Treble (3X) Damages

On Friday, November 22, 2013, the Detroit Water and Sewerage Department filed suit against the City of Highland Park over unpaid water and sewer bills totaling $17.7 million.  Highland Park's annual general fund budget is about $12 million per year. The Detroit News first reported this story here, and here. 

The lawsuit, filed in U.S. District Court, alleges that DWSD was forced by the State of Michigan to begin furnishing wholesale water services in 2012, and water treatment services in January, 2013 as Highland Park's long-running financial crisis  deepened and it was unable to maintain its water system in compliance with MDEQ standards.  

In addition to seeking payment under breach of contract and breach of implied contract theories, DWSD is alleging conversion and seeking treble damages under MCL 600.2919(a).  Under this statute,  

(1) A person damaged as a result of either or both of the following may recover 3 times the amount of actual damages sustained, plus costs and reasonable attorney fees:

(a) Another person's stealing or embezzling property or converting property to the other person's own use.

(b) Another person's buying, receiving, possessing, concealing, or aiding in the concealment of stolen, embezzled, or converted property when the person buying, receiving, possessing, concealing, or aiding in the concealment of stolen, embezzled, or converted property knew that the property was stolen, embezzled, or converted. 

Note: If you write me (here), I would be glad to e-mail you a copy of DWSD's lawsuit against the City of Highland Park, Case No. 2:13-cv-14827.  Just put "Highland Park" in the subject field. I'll try to get it posted next week.
 
For more about DWSD Update, click here.