By By Suzanne Monk / managing editor
April 30, 2003
A Lauderdale County chancery judge has ruled than Meridian officials are not entitled to more than $380,000 they claim is owed by Marion in fees for unpaid sewage treatment.
The decision comes after a lawsuit between the city and the town earlier this year.
Marion officials filed the complaint in February 2001 after Meridian raised the smaller town's sewage treatment rates from 67.7 cents per thousand gallons to $2.43 cents per thousand gallons.
Marion appealed to Chancellor Jerry Mason to stop Meridian from charging the higher rate citing a 1986 agreement between the Marion Board of Aldermen and the Meridian City Council. For its part, Meridian claimed that one city council cannot make binding agreements for future city councils.
The case went to trial in January. Mason ruled in favor of Meridian, and the $2.43 rate went into effect.
After the judge's decision, however, both sides claimed victory in the matter of retroactive damages.
Meridian began billing Marion at the $2.43 rate in February 2001, but Marion continued paying at the old rate of 67 cents per thousand gallons. The difference in payments between February 2001 and November 2002 was more than $380,000 and Meridian wanted the money.
In a decision issued Tuesday, the judge said they can't have it for the simple reason that they didn't ask for it. It was not, Mason said, an issue before him and Meridian did not ask for what it viewed as delinquent payments until after the trial was over.
Despite their failure to put the question before the judge at trial, Meridian attorneys had asked Mason to alter his order and award retroactive damages to prevent "manifest injustice."
Marion Mayor Malcolm Threatt said today he was relieved by the ruling.
Meanwhile, since January's ruling allowing Meridian to charge $2.43 per thousand gallons for sewage treatment, Marion has raised the rate it charges its residential customers from $3 per thousand gallons to $6.10 per thousand gallons.