A heavyweight insurer is asking a federal court to let it off the hook for covering Spokane in two headline-grabbing lawsuits over city water surcharges.
On Aug. 28, the Insurance Company of the State of Pennsylvania (ICSOP) filed a complaint in the US District Court for the Eastern District of Washington, seeking a clear ruling that it doesn’t have to defend or pay out for the City of Spokane in two ongoing legal battles. At the heart of the dispute are claims that the city imposed unlawful and excessive water surcharges on customers located outside its limits – sometimes up to 100 percent more than what in-city users paid.
One of the lawsuits, brought by West Terrace Golf, LLC, centers on allegations that the city imposed a water services surcharge requiring businesses and residents outside city limits to pay significantly higher rates. According to the complaint, after years of surcharges and unsuccessful attempts to resolve the issue, the city disconnected water service to the golf course on May 30, 2017. West Terrace claims this move led to property damage and lost revenue, and it is seeking declaratory judgment, injunctive relief, restitution, damages, interest, attorney fees, and costs…