CITY OF BLUE ISLAND SUED FOR ILLEGAL DELINQUENT WATER PENALTY SCHEME

Blue Island Charging Penalties Under New Mayor

CHICAGO, Oct. 1, 2024 /PRNewswire/ — How does an $884 water bill turn into a $142,000 water lien in less than three years? According to two complaints filed a few weeks ago (Buchanan v. City of Blue Island 224 CH 07942; Schoppen ex rel. Nassau Terrace Condominium, Inc. v. City of Blue Island 224 CH 08048), the City of Blue Island has since 2021 adopted an illegal ten percent monthly compounding interest scheme with regard to delinquent water bills. Both complaints have been filed in the Chancery Division of the Circuit Court of Cook County against the City of Blue Island by top Chicago lawyer, Shorge Sato.

Blue Island is a suburban community south of Chicago with approximately 21,000 residents. As a non-rule-home municipality, Blue Island’s powers are limited to those specifically provided for by law, according to the plaintiffs. While Illinois law allows for cities to charge residents for the use and benefit of water services, the plaintiffs allege that nothing in Illinois law allows cities such as Blue Island to impose exponential penalties in the form of monthly compounding interest upon delinquent water users.

In the case of plaintiff Michael Buchanan, what began as a delinquent water bill for $884 as of January 1, 2020, ballooned into an over $142,000 water lien against his property as of December 2023, with 93.6% of that arrearage consisting of water penalties. Similarly, in the case of Nassau Terrace Condominium, what began as a $42,000 water bill as of 2021 transformed into a $1.848 million water lien as of February 2024.

“What we are seeing in these two cases is just the tip of the iceberg. Since the election of Mayor Fred Bilotto in 2021, the City of Blue Island has changed its interpretation of the law to grant itself the power to impose ruinous exponential water penalties on delinquent water bills, without interrupting water service, or notifying the property owners,” says attorney Sato. “Under the guise of mercy, the city has turned the spigot all the way on when it comes to lining its own pockets.” Prior to filing these two lawsuits, attorney Sato sent Mayor Bilotto and his staff a detailed letter on August 8, 2024, informing them of their erroneous interpretation of the law and insisting on reform. Mr. Sato did not receive any response.

SOURCE Engaged Counsel

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