The settlement, which is subject to final approval by the Wayne County Circuit Court in February 2024, ends five years of extensive litigation. Affected Class Members must file claims in order to obtain refunds of past IWC Charges.

Kickham Hanley PLLC announced today that Judge Charles Hegarty of the Wayne County Circuit Court preliminarily approved a class action settlement in General Mill Supply Co. v. Great Lakes Water Authority (“GLWA”) and the City of Detroit (the “City”), a lawsuit challenging IWC Charges imposed by GLWA and the City on certain types of non-residential sewer users throughout Metro Detroit since 2013. In the lawsuit, Plaintiff contends that: (a) the IWC Charges were unlawful taxes and (b) the IWC Charges are unlawful because they were excessive.

The principal terms of the Settlement are as follows:

1. GLWA will create a Settlement Fund (the “Settlement Fund”) in the amount of Eleven Million Five Hundred Thousand Dollars ($11,500,000.00) in order to resolve the claims of the Class. The amount of the Settlement Fund remaining after payment of attorneys’ fees and costs will be distributed to the Class pursuant to a refund process.
2. Persons and businesses (other than a small number of “Significant Industrial Users”) who paid the IWC Charges between July 18, 2013 and June 30, 2023 will be able to claim refunds based upon the amount of IWC Charges they paid during that period of time as a percentage of the total amount of IWC Charges paid during that time by all Class Members who submit valid claims.
3. If the Court finally approves the Settlement, GLWA and the City will be released from any claims arising out of the IWC Charges through the date of final approval.

Greg Hanley, lead counsel for the Class, stated that: “we believe that this settlement, reached after 5 years of litigation and 8 mediation sessions with a very experienced mediator, is fair and reasonable for all involved. The settlement provides cold hard cash to persons and businesses who paid the IWC Charges over the last ten years and who submit valid claims.”

Hanley added, “now that the Court has preliminarily approved the settlement, we will be sending notices out to Class Members informing them of the terms of the settlement and instructing them how to submit claims. It is very important that the Class Members submit those claims by January 24, 2024. Otherwise, they will not be able to get a refund.”

The Court will hold a Zoom hearing on February 23, 2024 at 2 p.m. to determine whether the settlement should be finally approved. Class members seeking additional information (including claim forms) should go to www.iwcsettlement.com or www.kickhamhanley.com.

About Kickham Hanley: Kickham Hanley is a “boutique” law firm based in Royal Oak, Michigan specializing in commercial litigation, business and real estate transactions, and real estate tax appeals. The Firm also specializes in complex class actions challenging various governmental fees and charges. Through successful litigation, since 2012, the Firm has returned over $100 million in refunds and benefits to over 160,000 citizens who have been overcharged by their local governments.

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