HOLLIS v. CITY OF LAGRANGE, S24A0963

Plaintiffs (Lonnie Hollis and Mason’s World Bar & Grill, LLC) filed a putative class action against the City of LaGrange, Georgia, in 2023.
Plaintiffs alleged that the City charged excessive, mandatory utility rates (electrical, gas, water, and sewer) to generate profits beyond the actual cost, effectively imposing unauthorized taxes.
Plaintiffs claimed these excessive charges were illegal taxes not authorized by the Georgia Constitution or law and sought a refund, declaratory judgment, and injunction.
The City moved for judgment on the pleadings, arguing courts cannot review or regulate municipal utility rates per the Georgia Constitution.
The trial court agreed with the City, concluding constitutional prohibitions barred judicial review of the claims, and granted the motion, dismissing the case.
Plaintiffs appealed, challenging the trial court's interpretation of the constitutional limitation on the judiciary.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Judicial authority to review utility rate claims	The court can review whether mandatory charges constitute illegal taxes; Paragraph V(d) only binds the legislature	Courts have no authority to review or regulate utility rates because Paragraph V(d) bars such action	The court holds Paragraph V(d) restricts only the General Assembly, not the judiciary, so courts can review such claims

Bellsouth Telecommunications, LLC v. Cobb County, 305 Ga. 144 (2019) (sets forth criteria for determining whether a government charge is a tax)
Polo Golf & Country Club Homeowners Assn., Inc. v. Cunard, 306 Ga. 788 (2019) (standard for judgment on the pleadings)
Lathrop v. Deal, 301 Ga. 408 (2017) (discusses the judiciary's power of judicial review)
Ga. Motor Trucking Assn. v. Ga. Dept. of Revenue, 301 Ga. 354 (2017) (plain meaning rule for constitutional interpretation)
Sons of Confederate Veterans v. Henry Cnty. Bd. of Commissioners, 315 Ga. 39 (2022) (scope of judicial power comes from the Constitution, not from legislative grant)