Chillicothe to Appeal Federal Ruling

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Service Area(s): legal

The City of Chillicothe will appeal a federal judge's ruling against the city over water lines to the 6th Circuit Court of Appeals-- one step below the U.S. Supreme Court.

The appeal motion was filed earlier Monday by Garry Hunter, an Athens attorney hired by the city in 2008 to defend them against a lawsuit from Ross County Water Inc.

The case now will go before the 6th Circuit Court of Appeals, based in Cincinnati. The federal court hears appeals in federal cases in Kentucky, Michigan, Ohio and Tennessee.

In March, Federal Judge Michael Watson ruled in favor of Ross County Water, finding the rural water district has had water lines in place in the area since the 1970s, and that the city did not have the right to begin installing water lines in the area in 2008.

Dennis O'Toole, an attorney representing Ross County Water said he was surprised by the city's appeal, adding Watson is a highly regarded judge with a good reputation.

"The judge's decision was so well-reasoned. I'm not really sure what the area of disagreement is going to be," he said.

One of the key parts of Watson's ruling was the interpretation of a portion of a federal statute that grants rural water districts and associations who are indebted to the federal government the right to be the only seller of water in their service areas.

"The case now takes on a little bit more importance and will set precedence on how (that statute protecting rural water companies) is interpreted," O'Toole said.

Hunter, a former Athens law director was paid $39,211 in 2009 for representing the city in the case. Hunter charged $150 an hour and billed for paperwork costs, mileage and other expenses. O'Toole said an appeal would mean more taxpayer expense. After Watson's ruling on behalf of Ross County Water, O'Toole had said the utility would ask the court to direct the city to pay its expenses also.

"The cost of this litigation is expensive, and it's time consuming," O'Toole said. "We were hoping it could have ended with Judge Watson's ruling, and we could work towards a positive relationship."

Ross County Water Manager Bill Neal said he's also disappointed by the appeal.

"You hate to keep spending more and more money, but we're pretty confident Judge Watson made a good ruling," Neal said. "I know the city has every right to exhaust their legal options, but it's just a shame it's going to cost so much."

This article originally appeared in the Chillicothe Gazette, Loren Genson, on April 13, 2010.
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