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Hookup fee figured improperly
The Borough of Mendham had its own water supply system. In 1984, it planned $750,000 worth of improvements. In 1986, several residential developers who had previously been denied connection agreed to contribute toward the upgrade. Mendham set a connection fee of $3,000‐‐less than what developers would have spent on individual wells or an alternative supply. After review by accountants, Mendham reduced the connection fee for residents to $700. The developers sued to seek reimbursement of $213,000 in alleged excessive fees. The trial court ruled for the developers. An appellate court decided the method used to calculate the connection fee was inappropriate and returned the case to the trial court to determine whether the fee was voluntarily agreed upon after negotiations.
Hookup fee figured improperly
The Borough of Mendham had its own water supply system. In 1984, it planned $750,000 worth of improvements. In 1986, several residential developers who had previously been denied connection agreed to contribute toward the upgrade. Mendham set a connection fee of $3,000‐‐less than what developers would have spent on individual wells or an alternative supply. After review by accountants, Mendham reduced the connection fee for residents to $700. The developers sued to seek reimbursement of $213,000 in alleged excessive fees. The trial court ruled for the developers. An appellate court decided the method used to calculate the connection fee was inappropriate and returned the case to the trial court to determine whether the fee was voluntarily agreed upon after negotiations.
Hookup fee figured improperly
1993-09-01
1 pages
Article (Journal)
Electronic Resource
English
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