FOLLOW US

America June 23, 2025 3 mins read

East Lansing to Pay $7.8M in Energy Fee Lawsuit Over Unconstitutional Hidden Tax

America ı By Rihem Akkouche

0 Comments

East Lansing $7.8M Energy Fee

In a landmark development echoing through municipal corridors and utility billing departments alike, the city of East Lansing has agreed to pay $7.8 million to settle a lawsuit accusing it of illegally imposing a hidden tax on electric bills. The decision comes months after the Michigan Supreme Court determined the so-called "energy franchise fee" was unconstitutional.

The proposed settlement—filed in Ingham County Circuit Court—would establish a reimbursement fund for local electricity customers, pending judicial approval. The move is a direct response to a 4-1 ruling from the state’s highest court, which found the city violated the Michigan Constitution by failing to secure voter approval before implementing what it disguised as a utility fee.

The Hidden Charge That Sparked a Legal Storm

At the heart of the legal battle was a 5% franchise fee added to East Lansing residents’ electric bills. Collected by the Lansing Board of Water and Light (BWL) and remitted to the city, the fee was long considered by officials as a standard cost of doing business—until attorney and city resident James Heos challenged it in 2020.

Heos alleged the fee functioned as an unlawful general revenue generator, not tied to the actual provision of electric services. The Supreme Court agreed, writing that the pass-through nature of the fee did not shield it from constitutional scrutiny.

“Even if routed through another party, the fee still operated as a tax,” the court stated, calling it a “disguised levy” that sidestepped democratic oversight.

Who Gets Paid and When

According to the settlement agreement, the class includes all East Lansing residents who were charged the franchise fee between April 2, 2019, and April 30, 2025. The reimbursement fund—minus attorney fees and costs—will be distributed among these ratepayers.

Law firms Kickham Hanley PLLC and Abood Law Firm, representing the plaintiffs, agreed not to seek legal fees exceeding one-third of the settlement total.

City Concedes But Looks Ahead

East Lansing officials expressed disappointment with the court's conclusion but said they were ready to move forward.

“While disappointed with the decision, the City Council is committed to resolving this fairly and transparently,” said City Manager Robert Belleman, framing the settlement as a step toward civic stability.

Legal Powerhouses on Both Sides

Class Counsel:

  • Gregory D. Hanley, Jamie Warrow, Edward F. Kickham Jr. (Kickham Hanley PLLC)

  • Andrew Abood (Abood Law Firm)

City Counsel:

  • Charles E. Barbieri, Michael Homier, Brandon M.H. Schumacher (Foster Swift Collins & Smith PC)

  • Anthony K. Chubb, John C. Clark (Giarmarco Mullins & Horton PC)

While counsel for the plaintiffs did not respond to requests for comment, the legal record paints a picture of a city forced to reconcile modern governance with long-standing fiscal practices.

Previous Article

Did Medvedev Really Threaten to Provide Iran with Nuclear Warheads? Trump Demands Proof as Social Media Ignites Nuclear Alarm

Read More
4594 Posts

Rihem Akkouche

Rihem Akkouche is a passionate journalist dedicated to shedding light on compelling stories, sparking conversations, and fostering a more informed world.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America September 18, 2026
Uber Ordered to Pay $40 Million…

Uber has been ordered to pay $40 million to the…

By – Jackie Allen
America September 17, 2026
DEA Investigation Into Hayden Panettiere Death…

A DEA Investigation into the death of actress Hayden Panettiere…

By – Jackie Allen
America September 17, 2026
Starbucks Settles Florida DEI Lawsuit For…

Key Takeaways Starbucks has settled Florida’s lawsuit challenging the company’s…

By – Samuel Lopez
America September 17, 2026
Tyler Perry Plans Puerto Rico Move…

Key Takeaways Tyler Perry says he plans to move to…

By – Samuel Lopez
America September 17, 2026
New Balance Sues Decathlon Over Kiprun…

Key Takeaways New Balance claims Decathlon’s mirrored Kiprun “K” logo…

By – Samuel Lopez
America September 17, 2026
TV Azteca Files Chapter 15 in…

When a company’s debts stretch across borders, sometimes the restructuring…

By – Rachel Moore
America September 17, 2026
TV Azteca Files Chapter 15 in…

When a company’s debts stretch across borders, sometimes the restructuring…

By – Rachel Moore
America September 17, 2026
DNO to Acquire Capricorn in $400M…

Corporate takeover battles can play out like a chess match…

By – Rachel Moore
America September 17, 2026
Blueface Livestream Drama Raises Family Court…

Key Takeaways Repeated livestreams involving Blueface and Nevaeh Akira have…

By – Samuel Lopez
America September 17, 2026
F-16 Crash in Michigan Triggers Evacuation,…

Training exercises are meant to end quietly, with pilots landing…

By – Rachel Moore
America September 17, 2026
Infineon $1.1B Memory Unit Sale Hands…

Sometimes growing stronger means letting go of something valuable —…

By – Rachel Moore
America September 17, 2026
Rick Case 401(k) Settlement Ends Fight…

Retirement savings are supposed to grow slowly and predictably, like…

By – Tyler Brooks
America September 16, 2026
Pentagon Admits Space Weapons Are Already…

Key Takeaways The U.S. has confirmed for the first time…

By – Samuel Lopez
And More September 14, 2026
Sydney Sweeney and Scooter Braun Celebrate…

Sydney Sweeney celebrated her 29th birthday with a public declaration…

By – Jackie Allen
America September 13, 2026
AI Whistleblowers:  Warnings  Coming From Inside…

AI Whistleblowers are increasingly sounding the alarm about the speed…

By – Jackie Allen
America September 13, 2026
Serena Williams’ Daughters Make History as…

Serena Williams has built one of the most decorated careers…

By – Jackie Allen
America September 13, 2026
KJ Biermann Faces Seven Felony Charges…

KJ Biermann, the 15-year-old son of “Real Housewives of Atlanta”…

By – Jackie Allen
America September 13, 2026
Team USA Reaches Women’s Basketball World…

BERLIN — Team USA advanced to the FIBA Women’s Basketball…

By – Jackie Allen
Breaking News September 17, 2026
Fed Rate Hike Adds to Americans’…

WASHINGTON — A Fed rate hike is adding to Americans’…

By – Michallie Harrison
America September 16, 2026
Ed Sheeran Macklemore Fallout Sparks Mass…

A concert tour is supposed to build momentum night after…

By – Tyler Brooks
America September 16, 2026
CLARITY Act Stalls In Senate As…

Key Takeaways Senate Democrats opposed advancing the CLARITY Act after…

By – Samuel Lopez
America September 15, 2026
Oracle 6 AM Layoff Email Blindsides…

Most people wake up to alarms, coffee, maybe a weather…

By – Rihem Akkouche
America September 15, 2026
Grab Holdings to Buy 60% of…

Building a financial services empire from scratch can feel like…

By – Rihem Akkouche
America September 15, 2026
Electra Therapeutics’ $325M IPO Bets Big…

Traditional treatments for immune diseases often work like a wide-net…

By – Rihem Akkouche
America September 15, 2026
Massachusetts AG Joins 21-State Coalition Suing…

Key Takeaways Massachusetts Attorney General Andrea Campbell has joined attorneys…

By – Samuel Lopez
America September 14, 2026
TMZ Ties Itself to the Hayden…

Key Takeaways TMZ is reporting that law enforcement sources believe…

By – Samuel Lopez
America September 13, 2026
Bayer’s $7.25 Billion Roundup Settlement Faces…

Key Takeaways Bayer’s Monsanto unit will ask a Missouri judge…

By – Samuel Lopez
America September 13, 2026
Tylenol Maker and Pharmacy Chains Ask…

By Samuel López | USA Herald Tylenol maker Kenvue and…

By – Samuel Lopez
America September 13, 2026
Lawyers Are Getting Burned by AI…

Key Takeaways Courts across the country have been sanctioning lawyers…

By – Samuel Lopez
America September 10, 2026
41% of Lawyers Say Legal Careers…

Key Takeaways More than 41% of surveyed lawyers say the…

By – Samuel Lopez
America September 13, 2026
Team USA Reaches Women’s Basketball World…

BERLIN — Team USA advanced to the FIBA Women’s Basketball…

By – Jackie Allen
America September 11, 2026
Bears and RB Swift $33.75M Extension…

Sometimes the best deals get done before the clock even…

By – Tyler Brooks
America September 11, 2026
Skywatchers: Moonshadow Creates Dramatic Blood Moon…

A Moonshadow transformed the night sky Aug. 27 as the…

By – Jackie Allen
America September 6, 2026
Travis Kelce-Backed Club Car Wash Faces…

By Samuel López | USA Herald A fast-growing car wash…

By – Samuel Lopez
America September 6, 2026
‘DWTS’ Gleb Savchenko Lists $1.4 Million…

By Samuel López | USA Herald Factual Background Gleb Savchenko…

By – Samuel Lopez
America September 4, 2026
Trump Calls Tiger Woods DUI Plea…

In This Report Tiger Woods accepted reduced charges and surrendered…

By – Samuel Lopez

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter