Solid Equities, Inc. v. City of Atlanta
308 Ga. App. 895
Ga. Ct. App.2011Background
- Solid Equities, Inc. owned commercial property leased to Piedmont Restaurant Group, Inc. d/b/a City Cafe Diner.
- Piedmont abandoned the premises in September 2006, leaving a past-due water bill of $46,796.
- A new tenant later sought water service; the City refused service until the arrearage was paid or an agreement was made.
- Solid Equities paid the arrearage and then sued the City for damages related to the payment and other alleged losses.
- Solid Equities sought relief claiming the City unlawfully refused water service and that such action constituted an unconstitutional taking via inverse condemnation.
- The trial court granted summary judgment for the City and denied Solid Equities’ cross-motion.
- The Court of Appeals affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to refuse service for nonresidential property based on arrearage | Solid Equities argues the City had no lien-based restriction to withhold service from nonresidential property. | City asserts it may withhold service to nonresidential property until past due charges are paid, per statute. | Yes, the City may refuse service to nonresidential property. |
| Inverse condemnation based on ordinance noncompliance and service denial | Solid Equities claims the City’s failure to apply its ordinance and its refusal to restore service after arrearage constitutes taking. | City contends no taking occurred because it was authorized to withhold service for arrearages. | No inverse condemnation; summary judgment for City upheld. |
| Effect of OCGA 36-60-17 on lien restrictions and service denial | Statute bars liens for water charges incurred by a prior owner, but Solid Equities cannot be denied service based on arrearage. | Statute does not prohibit withholding service for arrearages on nonresidential property and does not require a lien to withhold service. | Statute bars liens but authorizes refusal to supply water service to nonresidential property for arrearages. |
Key Cases Cited
- Cowart v. Widener, 287 Ga. 622 (2010) (noting summary judgment standards and related criteria)
- Christian v. Eagles Landing Christian Academy, 303 Ga.App. 113 (2010) (summary judgment standards and appellate review)
- Palazzolo v. Rhode Island, 533 U.S. 606 (2001) (Takings Clause implications and public burdens)
- Mann v. State, 278 Ga. 442 (2004) (regulatory taking considerations regarding restrictions on use)
- Duffield v. DeKalb County, 242 Ga. 432 (1978) (inverse condemnation and nuisance-like claims)
- City of Commerce v. Duncan & Godfrey, Inc., 157 Ga.App. 337 (1981) (disclosure and billing/billing practices and damages)
- City of Douglas v. Johnson, 157 Ga.App. 618-619 (1981) (duty to disclose and perform ministerial duties in permitting/charges context)