COLDWATER, MI (WTVB) – A Branch County Probate Judge, sitting as a circuit judge, has temporarily halted a class action lawsuit challenging the Coldwater Board of Public Utilities (CBPU) payment-in-lieu-of-taxes (PILOT) fee.
Judge Kirk Kasian issued the stay, pausing the discovery process while the court considers the City of Coldwater’s request to dismiss the case entirely.
The lawsuit, filed on behalf of nearly 7,000 customers, alleges that the city has been overcharging residents by roughly $3 million annually by miscalculating a 6.5% fee based on gross revenue rather than gross income.
The case is currently scheduled for a motion-to-dismiss hearing on June 11, 2026. This delay comes amid further procedural shifts, as newly appointed Circuit Judge Zach Stempien announced plans to recuse himself due to potential conflicts of interest with city officials.
City attorney Amanda O’Boyle has defended the current collection practices as legally required by a 1960 voter-approved charter and argued that proceeding with extensive document discovery at this stage would place an “undue burden” on limited city staff.
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