Central Weld alleges Firestone lacks standing to file water-rate lawsuit

FIRESTONE — The Central Weld County Water District has filed a motion in Weld County District Court seeking dismissal of charges raised against it by the town of Firestone over alleged overbilling for water services over multiple years.

Firestone filed suit Aug. 2 against the water district. Its claims centered on multiple agreements and addendums to agreements that the town and the water district signed that required the district to provide water to the growing town at designated rates and surcharges.

The town alleged that those surcharge schedules sunset after several years but that the district continued to collect the higher rates even after those contractual end dates. The town sought the return of $8.6 million.

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The water district filed its response Aug. 26. While agreeing on most of the facts, the district argued that Firestone lacked standing to pursue the case, because water customers paid the fees and Firestone merely served to pass through the payments to the district. 

“Plaintiff has not suffered an injury-in-fact and, therefore, lacks standing to pursue its claims,” the district’s attorneys, Sean Lane and Alex Pass, with the Lane Law Firm PC wrote in the motion to dismiss.

The district also alleges that the claims are limited by the statute of limitations, because the rate schedules would have ended in 2006 and 2011. Actions taken under the Uniform Commercial Code require filing within three years, meaning that “the town is precluded from pursuing any claims that accrued prior to Aug. 2, 2018.”

The motion to dismiss also said that no breach of contract occurred, because the town continued to pay surcharges even though not required and the district continued to provide water. 

Finally, the district alleges that the Colorado Governmental Immunity Act applies to the situation.

A court date to hear arguments has not been set.

The case is Town of Firestone v. Central Weld County Water District, 2021cv30465, filed in Weld County District Court.