$4.45M Detroit water rates class action settlement

The City of Detroit has agreed to a $4.45 million class action settlement to resolve claims it charged unfair water rates.

The City of Detroit settlement benefits anyone who used an average of at least 1.0 MCF of water per month and paid or incurred charges for water service between Aug. 1, 2022, and May 31, 2026.

The class action lawsuit resolved by this settlement claimed Detroit charged unfair water rates that violated Michigan law. The plaintiff in the case said the city charged “inclining block” rates that resulted in higher charges for higher-volume users. These rates allegedly resulted in charges that exceeded the city’s cost of servicing these users.

The City of Detroit has not admitted any wrongdoing but agreed to pay $4.45 million to end the water rates class action lawsuit.

Under the terms of the City of Detroit settlement, class members can receive a pro rata share of the net settlement fund based on the amount they paid in volumetric water charges during the class period. Class members who paid the most in water charges will receive a larger share of the settlement fund.

Class members as of May 31, 2026, who remain current water and/or sewer customers of the city as of Aug. 26, 2026, will receive their share of the settlement as a credit against their water account. These credits will be applied over a six-month period.

Class members who are no longer water and/or sewer customers of the city as of Aug. 26, 2026, will receive their share of the settlement as a cash refund.

In addition to the settlement fund, the city has agreed to reduce its tier 2 volume rate by $6.22 per MCF from Jan. 1, 2027, through June 30, 2027. This reduction is valued at $39 million.

The deadline for exclusion and objection is Aug. 21, 2026.

The final approval hearing for the City of Detroit settlement is scheduled for Sept. 25, 2026.

To receive settlement benefits, class members must submit a valid claim form by Aug. 26, 2026.

Who’s Eligible

The class action settlement benefits consumers and entities who received water services from the City of Detroit between Aug. 1, 2022, and May 31, 2026, and who used an average of at least 1.0 MCF of water per month during that time period.

Potential Award

Varies

Proof of Purchase

Consumers who are no longer water customers of the City of Detroit must submit a sworn claim identifying their names, addresses and the periods of time in which they incurred or paid the charges.

Claim Form

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

08/26/2026

Case Name

Ajax Metal Processing Inc. v. City of Detroit, Case No. 23-015314-CB, in the Circuit Court for the County of Wayne, Michigan

Final Hearing

09/25/2026

Settlement Website

DetroitWaterSettlement.com

Claims Administrator

City of Detroit Water Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
[email protected]
844-443-0641

Class Counsel

Gregory D. Hanley
Edward F. Kickham
KICKHAM HANLEY PLLC

Defense Counsel

Sonal Hope Mithani
Kimberly L. Scott
MILLER, CANFIELD, PADDOCK AND STONE PLC