SOUTHWICK — The limited liability company that owns and operates Southwick Village filed a civil lawsuit against the town seeking to be reimbursed $333,393, alleging it was overbilled by 40 million gallons of water at its assisted living facility.
“For a period of almost five years the town, which operates and oversees the distribution of public water supply in its municipality, overcharged Southwick Care LLC for the provision of water to its properties,” according to the lawsuit that was filed in Hampden Superior Court by Lauren F. Olanoff of the Boston law firm Egan, Flanagan & Cohen on behalf of Southwick Care on Nov. 17.
According to the complaint, the town overcharged Southwick Care by adding a “0” to the end of the actual water meter readings, causing it to be charged for an extra 10 million gallons per bill, totaling 40 million gallons.
Southwick Care also alleges the town improperly charged one of its properties’ water usage at a higher “tier 3” rate despite a policy the town’s Water Commission adopted in November 2023, capping rates at the lower “tier 2 rate” for multiple residential rental units.
According to the DPW’s Water Division policy adopted in November 2023, “For multiple unit residential rental properties of 10 units or more, the rate shall be capped at the tier 2 rate per 1,000 gallons, regardless of the actual usage in excess of 30,000 gallons.
“For multiple-unit residential rental properties specifically designed as elderly complexes of 10 units or more, the elderly rate shall be applied and shall not be subject to a minimum charge. This policy would not apply to locations which have unaddressed leaks.”
During a Water Commission meeting held on Jan. 18, 2024, water usage at Southwick Village was discussed by the commissioners to determine if it would qualify for the tier 1 rate.
According to the meeting’s minutes, the commissioners acknowledged buildings with more than 10 units would be capped at the tier 2 rate and elderly complexes at tier 1.
At that meeting, former DPW Director Randy Brown said that some of the units at Southwick Village used water for irrigation.
“It was agreed upon that only the residential units would be eligible for the lower rate. Any unit that has a mixed use or is used for irrigation would not. Before Southwick Village is eligible, all leaks at the property need to be addressed,” which Brown addressed, adding it was the town’s largest water user.
He said at that January 2024 meeting that he had been in contact with Southwick Village representatives, and they “are now being more proactive about the leak notifications that in the past have gone unaddressed.”
Prior to last February, water rates hadn’t increased in several years.
Before then, for customers using up to 15,000 gallons during six months, the tier 1 rate was $7.50 per 1,000 gallons; for customers using between 10,000 and 30,000 in six months, the tier 2 rate was $8.10 per 1,000 gallons, and for those using over 30,000 gallons in six months, the tier 3 rate was $8.75 per 1,000 gallons.
In the lawsuit, Southwick Care said it was overcharged by $333,393, which it paid, and its demands for reimbursement by the town “had gone unanswered.”
The facts presented in the lawsuit by Southwick Care indicated that between November 2020 and April 2025, it used 5.1 million gallons of water for its 58 residential rental units.
It alleges it should have been charged $40,798 between those dates.
However, between April 2021 and April 2025, the town charged Southwick Care $374,191, “which corresponds to 46.1 million gallons at the tier 3 rate,” which was $8.75 per 1,000 gallons for most of that time.
The $333,393 represents the difference between the $374,191 and the $40,798 it believes should have been charged.
“As a direct and proximate result of [the town’s] breach, Southwick Care suffered significant damages,” and it “demands” a jury trial on all issues so triable, according to the lawsuit.
It is seeking damages, including interest and other relief, legal and equitable.
When the town’s Assistant Chief Administrative Officer Nadine Cignoni was contacted for a comment, she said the town couldn’t comment because of the pending litigation and that it has yet to formally answer the complaint.
According to court records, Southwick has until March 17 to answer the complaint.
