Higher Rates for Apartment Approved

Abstract

Thomas J. Flatley owned an apartment complex in Malden, Massachusetts. In all, the complex had 13 buildings containing 919 apartment units. The city has a three‐tiered water rate system that includes, in addition to a flat rate for up to 1,000 cu ft (28 m3) of water, three incrementally higher rates per 100 cu ft (2.8 m3) as usage increases. Each building has a single water meter, meaning that Flatley pays much of the water bill at the high‐usage rates. The court assumed these higher charges were ultimately paid by the residents of the complex. Flatley challenged the rate system as creating an impermissible discrimination between consumers who receive the same service under similar conditions, i.e, between apartment dwellers and residents of single family homes. The trial court ruled against Flatley. The decision was upheld by an appellate court.