Lawsuit For Mountain Water Co. Could Cost City $800K - ABC FOX MONTANA NEWS, WEATHER, SPORTS - KTMF/KWYB

Lawsuit For Mountain Water Co. Could Cost City $800K

Posted: Updated:
MISSOULA -

The City of Missoula's lawsuit to buy Mountain Water Company from its current owner could cost more than $800,000. Now, Mountain Water Company's owner, the Carlyle Group, is speaking out, saying an expensive lawsuit is unnecessary.

In a statement, Carlyle spokesman, Christopher Ullman, said, "We are disappointed the city has chosen this unnecessary, unjustified and expensive route."

The lawsuit could cost the city more than $800,000 per year, but Mayor John Engen says the price will be worth it in the long run.

"Right now it's run by investors who have no interest in if the water's clean and how the company is maintained. What they're interested in is making money," Engen said.

In the city's complaint, it argues water customers are currently paying global investors with no interest in Missoula and its water. In 2011, the Carlyle Group acquired Mountain Water's parent company, Park Water Company and all of its assets. The complaint shows in the 2013 fiscal year, the Carlyle Group's three founders earned $750 million, that's more than about $133,000 each per hour, a portion of that coming from Mountain Water Company.

"We don't need to make money at the city of Missoula we need to prepay our costs and invest in the system and that's what we intend to do," Engen said.

For now, the firm said it plans to keep it's ownership of Mountain Water. In the statement, Ullman said, "however long this process takes, Mountain Water will continue to provide the people of Missoula with the best quality water and service possible. We will vigorously defend our property rights against an unnecessary taking."

The case now goes to a judge. If a judge approves the city's request, a value will be set for the city to pay the Carlyle Group. Right now, the $800,000 is just an estimate. The city is still unsure how much the entire legal process will take.

 

 

  • NationalMore>>

  • Military: Pilot was killed in Virginia F-15 crash

    Military: Pilot was killed in Virginia F-15 crash

    Friday, August 29 2014 5:39 AM EDT2014-08-29 09:39:35 GMT
    The pilot of an F-15 jet that crashed earlier this week in remote Virginia mountains was killed, military officials now say, bringing a sad end to an exhaustive two-day search involving more than 100 local, state...
    The pilot of an F-15 jet that crashed earlier this week in remote Virginia mountains was killed, military officials now say, bringing a sad end to an exhaustive two-day search involving more than 100 local, state and...
  • Shelly Sterling talks about husband, Clippers sale

    Shelly Sterling talks about husband, Clippers sale

    Friday, August 29 2014 5:33 AM EDT2014-08-29 09:33:01 GMT
    When Shelly Sterling was approached by former Microsoft CEO Steve Ballmer about buying the Los Angeles Clippers, the wife of disgraced NBA team owner Donald Sterling did not know who he was. But in before long she...
    When Shelly Sterling was approached by former Microsoft CEO Steve Ballmer about buying the Los Angeles Clippers, the wife of disgraced NBA team owner Donald Sterling did not know who he was. But in before long she wound up...
  • Manatees may soon lose endangered species status

    Manatees may soon lose endangered species status

    Friday, August 29 2014 5:20 AM EDT2014-08-29 09:20:26 GMT
    As they do whenever they visit Florida, Greg Groff and his young daughter stopped by the manatee pool at Miami Seaquarium, where the speed bump-shaped marine mammals placidly swim in circles.
    As they do whenever they visit Florida, Greg Groff and his young daughter stopped by the manatee pool at Miami Seaquarium, where the speed bump-shaped marine mammals placidly swim in circles.
  • Most Popular

  • Most Popular StoriesMost Popular StoriesMore>>

  • Priest Lake Auction: Saying goodbye to home

    Priest Lake Auction: Saying goodbye to home

    Wednesday, August 27 2014 10:50 PM EDT2014-08-28 02:50:23 GMT
    PRIEST LAKE, Idaho - After years of obstacles for 61 Priest Lake lot lessees, the end comes on Thursday, August 28th. 
    PRIEST LAKE, Idaho - After years of obstacles for 61 Priest Lake lot lessees, the end comes on Thursday, August 28th. People who have been leasing land from the state, some more than 40 years, will find out if they get to keep their property in an auction.Back in 2010, the State of Idaho decided to divest more than 300 lake lots on Priest Lake.
  • Idaho Authorities Locate Missing UM Student

    Idaho Authorities Locate Missing UM Student

    Friday, August 29 2014 12:39 AM EDT2014-08-29 04:39:55 GMT
    The Boise County Sheriff's Department confirmed on Thursday evening that officials in Idaho located Lucius Robbi and his vehicle.

    The Boise County Sheriff's Department confirmed on Thursday evening that officials in Idaho located Lucius Robbi and his vehicle.


  • Seven Arrested in Kalispell Sex Sting

    Seven Arrested in Kalispell Sex Sting

    Friday, August 22 2014 3:10 PM EDT2014-08-22 19:10:39 GMT
    A four-day online sex sting ends with the arrest of seven Flathead men for sexual abuse of children, and more arrests are pending.
    A four-day online sex sting ends with the arrest of seven Flathead men for sexual abuse of children, and more arrests are pending.
  • Police, Father Search for Missing Missoula Man

    Police, Father Search for Missing Missoula Man

    Tuesday, August 19 2014 2:03 PM EDT2014-08-19 18:03:46 GMT
    Missoula police help family members search for Monte Swanson, 24, a missing Missoula man who is known to hang out at transient camps.
    Missoula police help family members search for Monte Swanson, 24, a missing Missoula man who is known to hang out at transient camps.
  • Want a skateboard signed by Pearl Jam while they were in Spokane? CHECK THIS OUT!

    Want a skateboard signed by Pearl Jam while they were in Spokane? CHECK THIS OUT!

    Wednesday, August 27 2014 5:03 PM EDT2014-08-27 21:03:16 GMT
    SPOKANE, Wash. - If you love skateboarding and Pearl Jam, then you're going to love this.Up for auction on eBay right now is a skateboard signed by Pearl Jam while they were in Spokane for their November 30th, 2013 concert during the Lightning Bolt tour. 
    SPOKANE, Wash. - If you love skateboarding and Pearl Jam, then you're going to love this.Up for auction on eBay right now is a skateboard signed by Pearl Jam while they were in Spokane for their November 30th, 2013 concert during the Lightning Bolt tour. The best part is, the money raised from the auction will go to the Ferry County Rail Trail Partners, a non-profit group that is developing a 25 mile long trail in Ferry County.
  • Cobell Settlement Checks Could Be Mailed By Fall 2014

    Cobell Settlement Checks Could Be Mailed By Fall 2014

    Friday, August 15 2014 9:03 PM EDT2014-08-16 01:03:47 GMT
    The people in charge of doling out money in the Cobell settlement want to put checks in the mail by this fall.
    The people in charge of doling out money in the Cobell settlement want to put checks in the mail by this fall.
  • UM Grads Invention Breaks Kickstarter Record

    UM Grads Invention Breaks Kickstarter Record

    Wednesday, August 27 2014 8:10 PM EDT2014-08-28 00:10:54 GMT
    A University of Montana graduate gets national attention, after his invention breaks a record on Kickstarter.com, a popular platform used to fund creative projects.
    A University of Montana graduate gets national attention, after his invention breaks a record on Kickstarter.com, a popular platform used to fund creative projects.
  • More Details On The Sex Sting Seven

    More Details On The Sex Sting Seven

    Saturday, August 23 2014 12:07 AM EDT2014-08-23 04:07:34 GMT
    Seven men sit behind bars and more could be headed that way after a four-day investigation headed by the Internet Crimes Against Children (ICAC) Task Force.
    Seven men sit behind bars and more could be headed that way after a four-day investigation headed by the Internet Crimes Against Children (ICAC) Task Force.
Powered by WorldNow

Features

  • More Features
  • Powered by WorldNow
    All content © Copyright 2000 - 2014 WorldNow and Cowles Montana Media. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.