City of Fayetteville v. Fayette County

Banke, Presiding Judge.

This is a dispute over an increase in rates for water service provided by Fayette County to the City of Fayetteville. In April of 1966, the parties entered into a written contract for a 40-year period, whereby the county agreed to provide water service to the city at a specified rate. The agreement specified that “if any disagreement shall arise with reference to the construction of this contract, or with reference to any matter connected with same, such disagreement or dispute shall be submitted immediately to and decided by arbitrators.”

The original water rate was…