Justia Class Action Opinion Summaries

Articles Posted in Utilities Law
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Sanitary and Improvement District No. 1, Butler County, Nebraska (SID #1) filed two class action lawsuits in Cass County, Nebraska, alleging that various county treasurers unlawfully deducted an incorrect percentage of assessments of municipal improvements collected on behalf of SID #1 and other sanitary and improvement districts. The county treasurers filed motions to dismiss for failure to state a claim. The district court granted those motions, concluding that the sanitary and improvement districts are not municipal corporations and therefore do not create municipal improvements. SID #1 appealed. The Supreme Court consolidated the appeals and reversed, holding that SID #1 stated a cause of action because a sanitary and improvement district can levy municipal taxes and make municipal improvements. Remanded. View "Sanitary & Improvement Dist. No. 1 v. Adamy" on Justia Law

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In 2005, a limited liability company and its owners (plaintiffs), on behalf of other similarly situated telephone customers, filed a complaint seeking to certify a class action lawsuit against United Telephone Company of Ohio (UTO), which provided Plaintiffs with telephone service. Plaintiffs claimed that their phone bills from UTO contained unauthorized charges from third parties. The trial court ultimately denied Plaintiffs' amended motion for class certification. The court of appeals reversed. The Supreme Court reversed and reinstated the order of the trial court, holding (1) a trial court must conduct a rigorous analysis to ensure the prerequisites of Ohio R. Civ. P. 23, under which plaintiffs must establish seven prerequisites in order to certify a class action, are satisfied; and (2) even though the trial court's consideration of the merits in this case was improper, its order denying certification of the class was correct because Plaintiffs' proposed amended class did not satisfy the prerequisites of Rule 23.View "Stammco, LLC v. United Tel. Co. of Ohio" on Justia Law

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This case was remanded to the district court for determination of whether a class should be certified and for determination of what, if any, part of the City's franchise fees for gas and electricity services are related to its administrative expenses in exercising its police power. The district court certified a class, found the franchise fees cannot exceed $1,575,194 per year for the electric utility and $1,574,046 for the gas utility, entered judgment in favor of the certified class against the City in the amount by which such fees exceeded that amount for an approximately ten-year period, and retained jurisdiction to determine the amount of money to be refunded to members of the class. The Supreme Court affirmed the judgment as modified, concluding that certain amounts allocated or not allocated by the district court as proper components of the franchise fees should be modified. Remanded. View "Kragnes v. City of Des Moines" on Justia Law