Billings faces class action lawsuit over water billing issues and shutoffs

The City of Billings is facing a class action lawsuit after complaints and water shutoffs from customers who were allegedly charged “grossly inflated” water bills following the implementation of a new billing system in the summer of 2024. Five Billings residents filed the proposed lawsuit in Yellowstone County District Court, accusing the Public Works Department of overbilling and pursuing collections and water shutoffs despite numerous customer complaints.

City officials had explained that the higher bills were due to a software transition, shifting from 30-day to 60-day billing cycles, a rate increase prior to the system change, and increased seasonal water use during a hot summer. An independent audit commissioned by the City Council in September 2024 revealed that billing software was accurate without any major problems at the time of review, although only a small fraction of city meters were inspected.

The lawsuit claims that the audit overlooked historical discrepancies and did not inspect the homes of the plaintiffs. The residents involved in the lawsuit, represented by Western Justice Associates, are Jeremy Chapman, Kailey Ferguson, Edward Johnston, Nancy Thorson, and Gary Zaccagnini. They seek to represent a class of Yellowstone County water customers allegedly overcharged starting in 2024.

For Johnston, the lawsuit is a culmination of efforts that started last summer when he co-founded a Facebook group called Billings Water Dispute — Citizens REACT to gather billing information from more residents. He received overwhelming support and emails from frustrated residents expressing a desire to address the issue collectively. This lawsuit reflects the persistence of residents like Johnston, who became embroiled in water billing disputes for almost two years after moving out of his home in April 2024.

The lawsuit, filed by attorneys Domenic Cossi and Jory Ruggiero, aims to halt collections and shutoffs linked to disputed bills, identify affected customers, and refund money collected on unjust charges. They demand a jury trial for clarity and justice. The complaint contains legal claims like breach of contract, negligence, and requests for declaratory and injunctive relief.

The plaintiffs named in the lawsuit had vastly different billing experiences. Johnston was charged $302.38 while his vacant home demonstrated no water usage, indicating discrepancies in the system. Ferguson, who rented a home, was charged $2,510 for a 31-day period with 245 kilogallons of water, far exceeding her prior consumption levels.

Residents like Ferguson received inexplicable explanations from the city for the high bills, including leaks, malfunctioning sprinklers, or water theft, leading to financial strain, emotional distress, and relocations. The lawsuit seeks accountability and transparency, urging fairness and redress for those impacted by the flawed billing process.

The lawsuit has been filed, and the legal process awaits the next steps. The court will review the allegations, decide whether to certify the case as a class action to include other affected customers, and assess requests to suspend collections or shutoffs during the legal proceedings. Mayor Mike Nelson and City Administrator Chris Kukulski have refrained from commenting on the matter as the city prepares its response.

For residents like Johnston and Ferguson, the lawsuit signifies a quest for clarity and resolution after grappling with erroneous water bills and associated hardships.