ELR Citation: ELR 20388
No(s). 81-74116 (E.D. Mich. Sep 28, 1984)

The court holds that a county road commission need not pay sewer user fees for treatment of stormwater runoff from its roads. Pursuant to a settlement of a Federal Water Pollution Control Act (FWPCA) suit with the Environmental Protection Agency, plaintiff instituted a user fee system to finance sewage treatment, and billed the road commission for treatment of runoff. The court had previously ruled, 13 ELR 20691, that the FWPCA does not create a private right-of-action to collectsuch charges. The court now holds that the commission does not owe fees under a quasi-contract theory. Surface runoff cannot be ascribed to individual landowners. Thus, the commission cannot be said to receive a benefit from plaintiff's service. And, on balance, equity does not require that plaintiff be compensated. Similarly, the Michigan Revenue Bond Act, which requires compensation for services rendered to public agencies, does not support a demand for fees. Finally, the court rules that the commission is not bound to pay by the settlement agreement. Since the commission is not a "user," "customer," or "rate payer" of the system, it is not party to the settlement. In fact, by expressly preserving a pending challenge for fees against the commission, the settlement implicitly excluded the commission from the class of users.

Counsel for Plaintiffs
Lynn Ferris
Asst. Corp. Counsel, City of Detroit
2 Woodward Ave., Detroit MI 48226
(313) 224-4550

Counsel for Defendants
James A. Hourihan, John R. Gerstein, John S. Stanton
Hogan & Hartson
815 Connecticut Ave. NW, Washington DC 20006
(202) 331-4500