Conn. Metropolitan District Commission Water Surcharges Class Action Settlement

Metropolitan District Commission in Connecticut has agreed to reimburse more than $7.5 million in surcharges that were allegedly charged to water customers.

The settlement benefits Connecticut property owners who were charged a surcharge by the Metropolitan District Commission on their water bill between March 6, 2012 and Oct. 1, 2014. According to the settlement website, eligible Class Members would have received notice by email or postcard.

Plaintiffs took legal action against Metropolitan District Commission, a water and sewer service supplier, alleging that the company illegally charged surcharges to their “non-member” towns. Whereas Bloomfield, East Hartford, Hartford, Newington, Rocky Hill, West Hartford, Wethersfield and Windsor are considered to be member towns, East Granby, Farmington, Glastonbury, South Windsor are non-member towns.

As a result of this classification, non-member towns were allegedly charged an illegal surcharge for water services. According to the plaintiffs, the Metropolitan District Commission charged more than $7.5 million in non-member town surcharges between March 2012 and October 2014.

In March 2018, the Connecticut Supreme Court reportedly reaffirmed a Superior Court decision that the Metropolitan District Commission surcharge was illegal until October 2014. At this time, a state law reportedly took effect governing the surcharge.

The plaintiffs argue that the state Supreme Court’s decision supports their own arguments that the surcharges were illegal and therefore entitle consumers to monetary compensation.

“There is no question that if the surcharges are unlawful, then the plaintiff can demonstrate damages for those years the surcharges were imposed,” the Supreme Court wrote before ruling that the surcharges were illegal.

The Metropolitan District Commission has not admitted any wrongdoing. The company maintains that it did not have any implied contracts with their customers and therefore did not breach said contracts by charging a non-member town surcharge. However, the Metropolitan District Commission has agreed to resolve the claims against them in a class action settlement.

The settlement provides reimbursement for Metropolitan District Commission surcharges in the form of either account credits or monetary payments.

Current customers of Metropolitan District Commission will receive reimbursement for the surcharges in the form of account credits. The credits will reportedly equal 103% of the amount they paid in surcharges. Going forward, the credit will be applied to billing cycles until it is used up.

Former customers of Metropolitan District Commission will also receive reimbursement for any surcharges they paid. Unlike current customers, former customers will receive a check in the amount of 100% of any surcharges paid during the Class Period.

The settlement agreement notes that this deal would provide substantial benefits to consumers, making the terms “fair, reasonable, and adequate.”

“The Settlement Class Representatives and Settlement Class Counsel have concluded […] that it would be in the best interests of the Settlement Class to enter into this Agreement, which interests include the substantial value to be derived from this settlement and the interest in avoiding the uncertainties of litigation,” the Metropolitan District Commission class action settlement agreement states.

No claim form is required to benefit from the Metropolitan District Commission class action settlement. Instead, Class Members have until Aug. 19, 2020 to exclude themselves or object to the settlement. The final approval hearing for the settlement is scheduled for Sept. 3, 2020.

Who’s Eligible

Connecticut property owners who were charged a surcharge by the Metropolitan District Commission on their water bill between March 6, 2012 and Oct. 1, 2014.

Potential Award

Cash payments or account credits for surcharge reimbursements.

Current customers of Metropolitan District Commission will receive reimbursement for the surcharges in the form of account credits. The credits will reportedly equal 103% of the amount they paid in surcharges. Going forward, the credit will be applied to billing cycles until it is used up.

Former customers of Metropolitan District Commission will receive a check in the amount of 100% of any surcharges paid during the Class Period.

Proof of Purchase

N/A

Claim Form

There is no Claim Form for this settlement. Class Members with further questions can click here for more information.

Exclusion Deadline

8/19/2020

Case Name

Paetzold v. Metropolitan District Commission, Case No. X07-HHD-CV-18-6090558-S, in the State of Connecticut Superior Court

Final Hearing

9/3/2020

Settlement Website

www.PaetzoldSettlement.com

Claims Administrator

Paetzold v. MDC
c/o JND Legal Administration
PO Box 91208
Seattle, WA 98111
info@paetzoldsettlement.com
1-888-383-0310

Class Counsel

Robert A. Izard
Craig A. Raabe
IZARD KINDALL & RAABE LLP

Defense Counsel

Wystan M. Ackerman
Kevin P. Daly
ROBINSON & COLE LLP

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