Articles Posted in Utilities Law

by
Coppage Construction Company, Inc. filed a third-party complaint raising a number of contract, tort, and statutory claims against Sanitation District No. 1 (SD1), a public sewer utility serving three Northern Kentucky counties. SD1 moved to dismiss the third-party complaint on the grounds that it was entitled to sovereign immunity. The circuit court converted the motion to dismiss into a motion for summary judgment and granted the motion, concluding that SD1 was entitled to sovereign immunity because SD1’s “parent” entities - the three counties - were immune entities, and SD1 performed a function integral to state government. The Court of Appeals affirmed, describing SD1 as an “arm” of the three counties. The Supreme Court reversed the Court of Appeals and vacated the summary judgment order of the circuit court, holding that SD1 was not entitled to sovereign immunity because it was not created by the state or a county and does not carry out a function integral to state government. View "Coppage Constr. Co., Inc. v. Sanitation Dist. No. 1" on Justia Law