(COLDWATER) - A Calhoun County judge will now oversee a class-action lawsuit against the City of Coldwater and its Board of Public Utilities, according to the Coldwater Daily Reporter.
The Michigan State Court Administrator's Office has appointed Circuit Judge John Hallacy to take over the case after Branch County Judge Zach Stempien recused himself, citing potential conflicts of interest.
The lawsuit involves about 7,000 utility customers and focuses on a 6.5% payment-in-lieu-of-taxes fee that generates roughly $3 million a year for the city's general fund.
Plaintiffs allege the city has been overcharging by calculating the fee on gross revenue instead of gross income, as outlined in a 1960 voter-approved charter. The complaint claims the city collected more than $12.9 million in excess charges between 2020 and 2024.
Judge Hallacy is scheduled to preside over a motion-to-dismiss hearing on June 11.
In the meantime, a temporary stay has been placed on discovery, and customers will continue paying the fee while the case moves forward.