The City of East Liverpool v. Buckeye Water District

2010 WL 2676900 (2010)

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The City of East Liverpool v. Buckeye Water District

Ohio Court of Appeals
2010 WL 2676900 (2010)

  • Written by Rose VanHofwegen, JD

Facts

In 1995, Columbiana County (codefendant) entered a 30-year contract to purchase water from the City of East Liverpool (plaintiff). The county later assigned the agreement to Buckeye Water District (BWD) (codefendant). East Liverpool sued for breach after the county and BWD stopped paying and repudiated the contract. In 2007, the trial court ruled in East Liverpool’s favor on all issues and awarded it damages of $9.7 million, with $8.2 million representing future damages for the 18 years remaining on the contract. East Liverpool suggested using the 5.08 percent return rate for 10-year treasury notes to discount those future damages, but the judge made no discount calculation. Because the city had raised rates in the past and retained the right to do so, the judge reasoned it would have hiked rates enough to effectively offset any present-value discount. The county and BWD appealed.

Rule of Law

Issue

Holding and Reasoning (Waite, J.)

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