DULUTH — The state’s highest court will hear a legal dispute over how the city imposes utility fees for stormwater runoff.

The Minnesota Supreme Court last week granted requests to review the class-action lawsuit that was initiated in September 2021 by Moline Machinery LLC and Glass Merchant Inc., which does business as Walsh Windows.

The businesses claim that the city overcharges and uses an inequitable system to collect the fees. They are seeking refunds for up to 1,500 businesses dating back to 2015 — damages that would potentially cost the city millions of dollars.

Judge Eric Hylden granted summary judgment to the city in November 2024, finding that the utility provider had not engaged in “unjust enrichment” because the rates are designed simply to “break even,” not turn a profi

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