City of Novi v. City of Detroit

This appeal as of right concerns the validity of the water rates charged to plaintiff as a customer of defendant’s water and sewerage department. At the bench trial on the matter, the trial court entered a judgment of no cause of action, finding that plaintiff had not adequately shown that the water rates charged by defendant were unreasonable or contrary to the actual costs incurred. We reverse.

Plaintiff is one of approximately one hundred communities which purchase water from defendant. The parties entered into a contract in 1964 for the sale and delivery of water. By its terms, the…