ILNews

Supreme Court splits on Barrett Law sewer payment case

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Hmmmmm ..... How does the good doctor's spells work on tyrants and unelected bureacrats with nearly unchecked power employing in closed hearings employing ad hoc procedures? Just askin'. ... Happy independence day to any and all out there who are "free" ... Unlike me.

  2. Today, I want to use this opportunity to tell everyone about Dr agbuza of agbuzaodera(at)gmail. com, on how he help me reunited with my husband after 2 months of divorce.My husband divorce me because he saw another woman in his office and he said to me that he is no longer in love with me anymore and decide to divorce me.I seek help from the Net and i saw good talk about Dr agbuza and i contact him and explain my problem to him and he cast a spell for me which i use to get my husband back within 2 days.am totally happy because there is no reparations and side-effect. If you need his help Email him at agbuzaodera(at)gmail. com

  3. The practitioners and judges who hail E-filing as the Saviour of the West need to contain their respective excitements. E-filing is federal court requires the practitioner to cram his motion practice into pigeonholes created by IT people. Compound motions or those seeking alternative relief are effectively barred, unless the practitioner wants to receive a tart note from some functionary admonishing about the "problem". E-filing is just another method by which courts and judges transfer their burden to practitioners, who are the really the only powerless components of the system. Of COURSE it is easier for the court to require all of its imput to conform to certain formats, but this imposition does NOT improve the quality of the practice of law and does NOT improve the ability of the practitioner to advocate for his client or to fashion pleadings that exactly conform to his client's best interests. And we should be very wary of the disingenuous pablum about the costs. The courts will find a way to stick it to the practitioner. Lake County is a VERY good example of this rapaciousness. Any one who does not believe this is invited to review the various special fees that system imposes upon practitioners- as practitioners- and upon each case ON TOP of the court costs normal in every case manually filed. Jurisprudence according to Aldous Huxley.

  4. Any attorneys who practice in federal court should be able to say the same as I can ... efiling is great. I have been doing it in fed court since it started way back. Pacer has its drawbacks, but the ability to hit an e-docket and pull up anything and everything onscreen is a huge plus for a litigator, eps the sole practitioner, who lacks a filing clerk and the paralegal support of large firms. Were I an Indiana attorney I would welcome this great step forward.

  5. Can we get full disclosure on lobbyist's payments to legislatures such as Mr Buck? AS long as there are idiots that are disrespectful of neighbors and intent on shooting fireworks every night, some kind of regulations are needed.

ADVERTISEMENT