Originally published in the 10/26/18 print edition of the Yellowstone County News.
BILLINGS — A lawsuit filed against the City of Billings by six residents who say utility franchise fees are illegal may be resolved through mediation or negotiation.
But first, city officials and the plaintiffs have to reach a “good faith” agreement from which to reach a settlement, an attorney for the defendants said in a letter to the city.
At issue is whether franchisee fees charged on bills for city services including water, sewer and trash collection were actually illegal sales taxes. A group of six plaintiffs filed a civil suit against the city in May seeking an end to the fee collection and refunds for city residents who had paid them. The plaintiffs seek “class action” status for the lawsuit, which is being heard by a Great Falls judge after all Yellowstone County District judges either recused themselves or were removed by request of parties to the lawsuit.
In a letter send this week to the city, plaintiff’s attorney Matthew Monforton said the city’s actions have hindered any settlement of the suit to this point.
“We agree with you that this case can and should be resolved, via mediation or direct
negotiations, sooner rather than later,” he wrote. “To be clear, that this matter has not yet settled is due entirely to the city’s bad faith litigation tactics — tactics that mirror the bad faith representations it has made for decades to its ratepayers. From 1992 until the filing of our clients’ lawsuit earlier this year, the city imposed illegal, regressive sales taxes on basic necessities — water, wastewater services, and garbage collection — and told its ratepayers that these illegal taxes were ‘franchise fees.’”
The plaintiffs believe, Monforton wrote, that the fees were actually sales taxes.
“It was only when our clients …. read full article by subscribing here or read the actual newspaper.
