NORFOLK, Va., Sept. 18, 2000 (Bell&Howell Information and Learning Co.) -- A judge extended a temporary restraining order Friday that will keep water flowing for about 22 Manteo residential and commercial customers who have sued the town in a dispute over $125,000 in water and sewer connection fees.
Superior Court Judge William C. Griffin of Williamston granted Chapel Hill attorney Michael Brough's request to extend the temporary order until Sept. 25, to allow arguments on his motion for a preliminary injunction.
A hearing will be held in Gates County, where Griffin will be holding court for the week.
The order prohibits the town from cutting off water or sewer service to the customers involved in the suit.
Griffin met via conference call with attorneys for both sides for less than an hour Friday afternoon before granting the extension.
Town attorneys argued that Griffin's initial order was invalid because it was done without both parties present.
Brough argued in court papers that if the town were allowed to disconnect service, his clients and their tenants would lose business.
Under the law, temporary restraining orders remain in effect for 10 days. A preliminary injunction will keep the judge's order in effect until the case is heard.
The temporary order expired at 12:46 p.m. Some business owners feared the town would cut off water and sewer service as soon as the deadline passed. It didn't.
Earlier this month, the town had disconnected service to two businesses because they failed to pay the disputed fees. But after Griffin issued his initial order, service was restored within hours.
Under language in temporary occupancy permits issued by the town, businesses had 90 days to pay water and sewer impact fees, or service would be interrupted.
Reached by phone Friday afternoon, Brough said the two parties may be close to an agreement on the water fees. But the bulk of the dispute is about sewer fees. The water dispute affects building owners at Centennial Court.
Town Manager Kermit Skinner said that before the lawsuit was filed, the town offered a remedy to the water dispute.
Brough called the dispute between the two sides "troubling" because tenants renting commercial space have had to live with the threat of having water and sewer service disconnected.
Asked if there was a chance for an out-of-court settlement, Skinner said, "I'm not a lawyer. But it would seem to me that to reach a settlement, the town would have to set a rate for the people involved that's different from everybody else in town. I don't think we can do that."
The dispute arose after town officials first charged the plaintiffs water and sewer fees based on past use of the property. Several months later, however, the town said officials made a mistake and that the fees should be based on present use. As a result, the town maintains, the property owners owe the difference.
The property owners say they relied on the town's original figures when they obtained financing and got building permits.
For some of the plaintiffs, it's a matter of a few thousand dollars. But one business, a laundry on U.S. 64, was told it owes $46,000.
"If we're wrong, we'll pay the fees," Brough said. "If the town's wrong, we'll expect some refunds."
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