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Supreme Court splits on Barrett Law sewer payment case

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A divided Indiana Supreme Court has ruled that the City of Indianapolis didn’t violate the constitution by refusing to grant some homeowners’ refund requests for sewer project assessments they’d paid in full when other homeowners who’d made partial installment payments had the remaining balance of assessments owed discharged.

The 3-2 ruling came today in the case of City of Indianapolis, et al. v. Christine Armour, et al., No. 49A02-0901-CV-84, in which 45 homeowners in an Indianapolis subdivision sued the city for not receiving refunds of sewer assessments they’d paid. The assessments were part of a sanitary sewer project funded under the Barrett Law, Indiana Code Chapter 36-9-39, and the homeowners were able to either pay the full amount or make partial payments each month. But when the city switched to funding these projects under the Septic Tank Elimination Program, those who’d been paying monthly installments were no longer responsible for anything that had been unpaid. Homeowners who’d paid the nearly $10,000 assessments in one lump sum prior to Nov. 1, 2005, were denied any refund on any portion, equivalent to what the other neighbors had discharged by the city.

Those homeowners sued for refunds, declaratory relief, or a writ of mandamus, alleging the city's decision to not refund the money violated the Equal Protection Clause. The trial court agreed and entered judgment against Indianapolis for $380,914. The Indiana Court of Appeals in 2009 affirmed that judgment and found the city didn’t have a rational basis for granting relief to those who’d been paying gradually but not for those who had paid in full up front. The only way to resolve the constitutional Equal Protection Clause violation, according to the intermediate appellate court, was to issue refunds to the plaintiffs.

But the state Supreme Court disagreed, with a three-justice majority reversing the trial court decision and finding no constitutional violation had occurred. Justice Frank Sullivan wrote the majority opinion and was joined by Chief Justice Randall T. Shepard and Justice Steven David, while Justices Robert Rucker and Brent Dickson dissented.

“We hold that Resolution 101 does not violate the Equal Protection Clause of the Fourteenth Amendment because it rationally related to legitimate government interests,” Justice Sullivan wrote.

The majority found that the city’s rationale was that low- and middle-class families were more likely to have been paying gradually and those who paid in full up front were likely higher income, meaning it was reasonable that it would coincide with the government’s interest in moving away from the Barrett Law system because of the financial burdens it created. But overall, the majority cited a U.S. Supreme Court case from 1981 in determining that it doesn’t matter under the rational basis review what the actual facts might show about that financial hardship if the issue might be debatable before the governmental decision-maker. That is why the Court of Appeals erred in requiring actual proof of the financial hardship statuses of those who had their assessments discharged, the majority wrote.

The majority justices also pointed out that the decision to not refund money to those who’d paid in full was another legitimate government interest – preservation of limited resources in not emptying its coffers.

“It is true that those whose assessments were discharged also received a sewer and did so at a lower price,” Justice Sullivan wrote. “But the Equal Protection Clause does not require substantive equality among taxpayers if there is a rational basis for differing treatment, and the Court of Appeals erred in concluding otherwise.”

But Justices Rucker and Dickson disagreed, finding the city’s “rational basis” wasn’t sufficient and was used as more a blanket reason without any practical justification of it actually doing what it claimed to do.

“However, merely declaring that Barrett Law funding ‘imposed financial hardships on middle- and low-income property owners who were often most in need of sanitary sewers due to failing septic systems,’ does nothing to explain why the City treated differently residents who elected to pay their assessments in a lump sum versus those who elected to pay in installments,” Justice Rucker wrote. “Here, there is no indication that the Board even believed the classification would further its stated objective. In my view, the disconnect demonstrates that the classification fails to have ‘a fair and substantial relation’ to the statutory objective.”

The U.S. Supreme Court hasn't specifically addressed whether a municipality contravenes the Equal Protection Clause when it forgives an outstanding assessment owed by some property owners while, at the same time, it refuses to refund an equivalent amount to similarly situated property owners who have already paid the same assessment in full.
 

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  1. Call it unauthorized law if you must, a regulatory wrong, but it was fraud and theft well beyond that, a seeming crime! "In three specific cases, the hearing officer found that Westerfield did little to no work for her clients but only issued a partial refund or no refund at all." That is theft by deception, folks. "In its decision to suspend Westerfield, the Supreme Court noted that she already had a long disciplinary history dating back to 1996 and had previously been suspended in 2004 and indefinitely suspended in 2005. She was reinstated in 2009 after finally giving the commission a response to the grievance for which she was suspended in 2004." WOW -- was the Indiana Supreme Court complicit in her fraud? Talk about being on notice of a real bad actor .... "Further, the justices noted that during her testimony, Westerfield was “disingenuous and evasive” about her relationship with Tope and attempted to distance herself from him. They also wrote that other aggravating factors existed in Westerfield’s case, such as her lack of remorse." WOW, and yet she only got 18 months on the bench, and if she shows up and cries for them in a year and a half, and pays money to JLAP for group therapy ... back in to ride roughshod over hapless clients (or are they "marks") once again! Aint Hoosier lawyering a great money making adventure!!! Just live for the bucks, even if filthy lucre, and come out a-ok. ME on the other hand??? Lifetime banishment for blowing the whistle on unconstitutional governance. Yes, had I ripped off clients or had ANY disciplinary history for doing that I would have fared better, most likely, as that it would have revealed me motivated by Mammon and not Faith. Check it out if you doubt my reading of this, compare and contrast the above 18 months with my lifetime banishment from court, see appendix for Bar Examiners report which the ISC adopted without substantive review: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

  2. Wow, over a quarter million dollars? That is a a lot of commissary money! Over what time frame? Years I would guess. Anyone ever try to blow the whistle? Probably not, since most Hoosiers who take notice of such things realize that Hoosier whistleblowers are almost always pilloried. If someone did blow the whistle, they were likely fired. The persecution of whistleblowers is a sure sign of far too much government corruption. Details of my own personal experience at the top of Hoosier governance available upon request ... maybe a "fake news" media outlet will have the courage to tell the stories of Hoosier whistleblowers that the "real" Hoosier media (cough) will not deign to touch. (They are part of the problem.)

  3. So if I am reading it right, only if and when African American college students agree to receive checks labeling them as "Negroes" do they receive aid from the UNCF or the Quaker's Educational Fund? In other words, to borrow from the Indiana Appellate Court, "the [nonprofit] supposed to be [their] advocate, refers to [students] in a racially offensive manner. While there is no evidence that [the nonprofits] intended harm to [African American students], the harm was nonetheless inflicted. [Black students are] presented to [academia and future employers] in a racially offensive manner. For these reasons, [such] performance [is] deficient and also prejudice[ial]." Maybe even DEPLORABLE???

  4. I'm the poor soul who spent over 10 years in prison with many many other prisoners trying to kill me for being charged with a sex offense THAT I DID NOT COMMIT i was in jail for a battery charge for helping a friend leave a boyfriend who beat her I've been saying for over 28 years that i did not and would never hurt a child like that mine or anybody's child but NOBODY wants to believe that i might not be guilty of this horrible crime or think that when i say that ALL the paperwork concerning my conviction has strangely DISAPPEARED or even when the long beach judge re-sentenced me over 14 months on a already filed plea bargain out of another districts court then had it filed under a fake name so i could not find while trying to fight my conviction on appeal in a nut shell people are ALWAYS quick to believe the worst about some one well I DID NOT HURT ANY CHILD EVER IN MY LIFE AND HAVE SAID THIS FOR ALMOST 30 YEARS please if anybody can me get some kind of justice it would be greatly appreciated respectfully written wrongly accused Brian Valenti

  5. A high ranking Indiana supreme Court operative caught red handed leading a group using the uber offensive N word! She must denounce or be denounced! (Or not since she is an insider ... rules do not apply to them). Evidence here: http://m.indianacompanies.us/friends-educational-fund-for-negroes.364110.company.v2#top_info

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