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SUPREME COURT CASE Highlights

Monday, February 26, 2007


Youngstown Mayor Jay Williams has referred to a state Supreme Court decision from March 2006 that allows Perrysburg in northwestern Ohio to force annexation by shutting off water to customers in a subdivision contiguous to its boundaries. Here are highlights from that case:
The question for the court: May a city that agreed to provide water and sewer services to a subdivision outside city limits later require homeowners to apply for annexation or lose their services?
Background: Perrysburg extended water and sewer lines in 1975 to an area outside the city, later known as the Willowbend subdivision, with no condition of annexation.
In 1983, Perrysburg passed an ordinance that it would not extend services to any new customers outside the city unless they applied first for annexation.
In 1991, it adopted an ordinance stating that when a home outside the city that receives services is sold, the new owner has to annex or lose the services.
In 1998, a third ordinance required everyone outside the city limits with services to file for annexation within 60 days of receiving notice or lose their services. In 2002, property owners in and around Willowbend got notices.
Who filed suit: Willowbend residents Gregory and Karen Bakies and Richard Smith along with a group of nearby commercial property owners called the GEM plaintiffs filed suit in Wood County Common Pleas Court. GEM applied for city service extensions after 1983. The Bakies, who had bought their home from a previous owner in 1998, had signed an agreement to seek annexation. Smith was an original homeowner whose services dated back to 1978, before the city's first ordinance linking water service to annexation.
Lower courts' actions: The trial court granted judgment in favor of the city. The 6th District Court of Appeals ruled that the Bakies had signed a binding agreement; that the city had written agreements with the GEM plaintiffs to abide by changes in the city's water service rules; and that Smith was not guaranteed services without any change in terms or conditions.
Supreme Court appeal: Plaintiffs argued the city originally agreed to provide services with no condition of annexation, and the later requirement violated the state constitution's ban on retroactive laws.
Perrysburg's response: The city had no written contract with the developer or original property owners in Willowbend to provide services and was free to walk away from the oral agreement with enough notice to property owners.
Decision: The court ruled unanimously in favor of Perrysburg on March 29.