Top Class Actions  |  June 30, 2020

Category: Closed Class Actions

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This settlement is closed!

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A St. Clair Shores stormwater class action settlement has been reached.

The city of St. Clair Shores has agreed to pay a settlement of nearly $3.5 million to some of its property owners. This settlement was reached to end claims that the Michigan city wrongly charged property owners for stormwater services.

Class Members include all those people or entities who paid or were charged the stormwater charges between Aug. 15, 2011 and Feb. 29, 2020.

The property owners filed their claims against the city in 2017, saying that the city’s choice to charge for stormwater services was really a way of evading constitutional limitations on tax hikes. They admonished the city for using “creative yet impermissible” financing of stormwater management to pass off the cost of stormwater management onto citizens. Allegedly, the city charged a total of around $1 million in stormwater charges per year. 

Effectively, the city charges property owners far more than the proportional cost it would take to provide property owners with this service, and makes property owners shoulder the cost for the entire city’s stormwater management, says the city water management class action lawsuit.

However, the property owners say that the city should not have charged this at all, and instead, should have covered it through the city’s own budget. The property owners say that because the stormwater management system benefits the public but does not provide “individualized, measurable benefit” to property owners, it should not be covered by a fee. To make this point, the property owners point to a previous court decision to that effect.

Specifically, the St. Clair Shores water management class action lawsuit states that this charge violates the Michigan Constitution and the Prohibited Taxes by Cities and Villages Act. The property owners also claim that the charge violates “common law ratemaking principles” because the the revenue gained by the city from charging the fee far exceed the cost of providing the service.

The city of St. Clair Shores denies all wrongdoing in this instance, but has agreed to settle these claims in the interest of avoiding the continued costs and risks of litigation.

Around 33 percent of the settlement fund will go to covering attorneys’ fees, and the rest of the settlement fund will be divided amongst Class Members. The settlement website does not provide a specific value for compensation from the fund, but does note that the benefits will be distributed in the form of a credit against future water/sewer charges or refund check.

Class Members who have since moved out of St. Clair Shores are still eligible for benefits, and can call the settlement administrator to provide their information.

The deadline to file a claim for a refund check is July 27, 2020. Class Members must be able to identify their names, addresses, and times when they paid the charges to receive a refund check. 

Those Class Members who do not file a claim by July 27, 2020 will not be eligible for a refund check but will receive a credit against future water and sewer charges equal to their pro rata share of the settlement fund.

The deadline to opt out of the settlement is July 27, 2020. Class Members are invited but not required to attend a final approval hearing for the settlement on Aug. 31, 2020.

Who’s Eligible

Class Members include all those people or entities who paid or were charged the stormwater charges between Aug. 15, 2011 and Feb. 29, 2020.

Potential Award

Varies.

Around 33 percent of the settlement fund will go to covering attorneys’ fees, and the rest of the settlement fund will be divided amongst Class Members. The settlement website does not provide a specific value for compensation from the fund, but does note that the benefits will be distributed in the form of a credit against future water or sewer charges or refund check.

Proof of Purchase

Class Members must be able to identify their names, addresses, and times when they paid the charges to receive a refund check.

Claim Form

CLICK HERE TO FILE A CLAIM »

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

7/27/2020

Case Name

Brad M. Patrick v. City of St. Clair Shores, Case No. 2017-003018-CZ, in the State of Michigan, Macomb County Circuit Court

Final Hearing

8/31/2020

Claims Administrator

Patrick v. City of St. Clair Shores Settlement Administrator
c/o KCC Class Action Services LLC
P.O. Box 43434
Providence, RI 02940-3434
1-888-729-5724

Class Counsel

Gregory D. Hanley
KICKHAM HANLEY PLLC

Defense Counsel

Ronald A. King
CLARK HILL PLC

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7 thoughts onSt. Clair Shores, Mich. Stormwater Class Action Settlement

  1. Deborah says:

    I need my check reissued – was misplaced but I have found recently- what do I need to do or who and where do I need to mail the outdated check. Thank you.

  2. Diane Golembiewski says:

    My husband and I have lived here since 1972. I have water bills from 12-3-2013 to 9-15-2019 with storm water charges totaling 93.24. I received a check today for 30.61, a lot less than I was expecting. Your first letter said lawyers would get around 33%. I thought I would get around 60.00.

  3. Betty schmidt says:

    I have lived in the city 50 yrs and did not receive any paperwork for this claim. Please add my name.

  4. Felicia R Reddick says:

    add me in

  5. William Johnson says:

    Received nothing in the mail on this. Please add me.

  6. Ruth says:

    Never received anything in the mail I have lived in Saint Clair shores for over 30 years

  7. Renee Wildermuth says:

    Please add me

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.