City of Detroit $4.45M Water Rate Class Action Settlement

City of Detroit $4.45M Water Rate Class Action Settlement

By the Class Action Buddy Editorial Team · Last reviewed August 21, 2026 · ✓ verified against https://www.detroitwatersettlement.com/

Varies (pro-rata)
Max Payout
Aug 26, 2026
Filing Deadline
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If you racked up serious water usage in Detroit — a business, an apartment building, the household that never turns off the sprinklers — the city has agreed to a $4.45 million settlement that might put money back in your pocket. Whether the check finds you or you have to chase it comes down to one question. Current customer, or former one? The lawsuit is Ajax Metal Processing, Inc. v. City of Detroit (Case No. 23-015314-CB, Wayne County Circuit Court). It challenges how Detroit structures its tiered water rates. The city charges a lower Tier 1 rate for the first 0.6 MCF (thousand cubic feet) of monthly use, then a higher Tier 2 rate above that line. Plaintiff argued that the Tier 2 rate is an "inclining block" rate — one that bills heavy users more than it costs the city to serve them. Detroit denies wrongdoing. It settled anyway. Here's the split that matters. If you were still a Detroit water customer as of August 26, 2026, do nothing: the city applies a credit to your account over roughly six months. Former customer as of that date? The money comes as a cash refund — but only if you file a claim by August 26, 2026. Miss the deadline as a former customer and you get nothing. To qualify, city records have to show you paid Detroit water charges between August 1, 2022 and May 31, 2026, averaging at least 1.0 MCF per month across that window. Payments run pro-rata. Your share tracks how much you paid relative to everyone else in the class, so there's no flat "maximum" to point at. The settlement also temporarily cuts the Tier 2 rate for the first half of 2027, a reduction it pegs at about $39 million through mid-2030.
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Who Is Eligible?

You may be eligible to file a claim if you:

  • You are a person or entity that received water service from the City of Detroit between August 1, 2022 and May 31, 2026.
  • You used an average of at least 1.0 MCF (thousand cubic feet) of water per month during that period.
  • You paid or incurred the City's water charges during that time.
  • Whether you receive a credit or a cash refund depends on your status as of August 26, 2026: current Detroit water customers get a credit; former customers get a cash refund if they file a claim.
  • The court certified the class in September 2025. If the city's records show you qualify, you were mailed a settlement notice containing a login ID and PIN.

How Much Can You Get?

The $4.45 million fund is split pro-rata: your share is based on how much you paid in Detroit water charges during the class period compared with everyone else in the class. After deductions — attorneys' fees of up to $1,780,000, a service award of up to $20,000 for the class representative, plus administration costs — the remainder is divided among class members. There is no fixed maximum; it depends on your usage and the size of the class. How you receive the money depends on your customer status as of August 26, 2026. Current customers whose outstanding balance is at least as large as their share get a credit against that balance. Current customers with no balance, or a smaller one, get a credit applied to future water bills over roughly six months. Former customers get a pro-rata cash refund by check. On top of the cash, the settlement temporarily lowers Detroit's Tier 2 water rate by $6.22 per MCF — to $44.99 per MCF — from January 1 through June 30, 2027.

How to File Your Claim

File with the administrator:

  • If you were still a City of Detroit water customer on August 26, 2026, you do not need to do anything — the city automatically applies your credit over roughly six months.
  • If you were a former customer on that date, you must file a claim by August 26, 2026 to receive a cash refund. File online at the official settlement website, detroitwatersettlement.com, or download, complete, and mail the PDF claim form.
  • Submit a separate claim form for each water account or service address you are claiming.
  • Former customers should provide their name and contact information, the water/sewer service address, the period they paid charges, their account number (if known), and the login ID and PIN from their settlement notice.
  • Mail paper claims to the City of Detroit Water Settlement Administrator, 1650 Arch St., Suite 2210, Philadelphia, PA 19103, or contact the administrator at 844-443-0641 or info@DetroitWaterSettlement.com with questions.

File this one with the administrator

Class Action Buddy does not file this settlement for you — use the official claim process above. What the app does do is watch the open settlements list and tell you when a new one matches your profile.

Frequently Asked Questions

What is the deadline to file a claim for the City of Detroit $4.45M Water Rate Class Action Settlement?

The current deadline to file a claim is Aug 26, 2026. Claims sent by mail must be postmarked by this date, so allow about a week for delivery if you are not filing online.

How do I file a claim for the City of Detroit $4.45M Water Rate Class Action Settlement?

File directly with the settlement administrator, using the official claim form linked on this page. Class Action Buddy does not support this settlement in the app, so the administrator’s own claim process is the route. Check whether the form asks for an ID or PIN from the notice you were sent before you start.

Who qualifies for the City of Detroit water settlement?

Any person or business that paid City of Detroit water charges between August 1, 2022 and May 31, 2026 and averaged at least 1.0 MCF (thousand cubic feet) of water use per month during that period. Because 1.0 MCF is a high monthly volume, the class skews toward heavy users such as businesses and larger properties.

Do I need to file a claim for the Detroit water settlement?

It depends on your status as of August 26, 2026. If you were still a City of Detroit water customer, you do nothing and the city applies a credit to your account automatically. If you were a former customer, you must file a claim by August 26, 2026 to receive a cash refund.

How much will I get from the Detroit water settlement?

Payments are pro-rata, based on your share of the total water charges paid by the class, so there is no fixed maximum. The $4.45 million fund is divided among class members after attorneys' fees (up to $1.78 million), a service award (up to $20,000), and administration costs.

What is the Detroit water settlement claim deadline?

Former customers must file a claim by August 26, 2026. The deadline to opt out or object was August 21, 2026, and the fairness hearing is scheduled for September 25, 2026 before Judge Annette J. Berry in Wayne County Circuit Court.

Will I get cash or an account credit?

Current Detroit water customers (as of August 26, 2026) receive a credit — either against an outstanding balance or against future water bills over about six months. Former customers receive a pro-rata cash refund by check.

What was the Detroit water lawsuit about?

Ajax Metal Processing, Inc. v. City of Detroit (Case No. 23-015314-CB, Wayne County Circuit Court) alleged the city's Tier 2 water rate is an inclining block rate that charged high-volume users more than the cost of serving them. Detroit denies wrongdoing and settled to avoid further litigation.

Primary source: official settlement administrator — detroitwatersettlement.com. The settlement details on this page were checked against the administrator’s official website.

Class Action Buddy is an independent directory and is not affiliated with, endorsed by, or sponsored by the settlement administrator or the court. This page is general information, not legal advice. See how we verify settlements.

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