Clay Chastain v. Bedford Regional Water Authority

CourtCourt of Appeals of Virginia
DecidedDecember 6, 2022
Docket0233223
StatusUnpublished

This text of Clay Chastain v. Bedford Regional Water Authority (Clay Chastain v. Bedford Regional Water Authority) is published on Counsel Stack Legal Research, covering Court of Appeals of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Clay Chastain v. Bedford Regional Water Authority, (Va. Ct. App. 2022).

Opinion

COURT OF APPEALS OF VIRGINIA UNPUBLISHED

Present: Judges Beales, Malveaux and Causey Argued at Salem, Virginia

CLAY CHASTAIN MEMORANDUM OPINION* BY v. Record No. 0233-22-3 JUDGE MARY BENNETT MALVEAUX DECEMBER 6, 2022 BEDFORD REGIONAL WATER AUTHORITY

FROM THE CIRCUIT COURT OF BEDFORD COUNTY James W. Updike, Jr., Judge

Clay Chastain, pro se.

W. Watts Burks, IV (Glenn Feldmann Darby & Goodlatte, on brief), for appellee.

Clay Chastain (“Chastain”) appeals from an order of the circuit court dismissing his petition

challenging the water and sewer connection fees required by the Bedford Regional Water Authority

(“BRWA”). For the following reasons, we affirm the judgment of the circuit court.

I. BACKGROUND

Chastain built a house in Bedford County on a lot which lacked water and sewer service.

He intended to connect the house to water and sewer lines owned by BRWA. BRWA did not need

to install additional lines to facilitate Chastain’s requested connections. Instead, provided he paid

certain fees required by BRWA, Chastain would be responsible for making the physical connections

to the water and sewer systems while BRWA would add a meter box and related items.

BRWA charged a $5,000 capital recovery fee to connect Chastain’s house to its water

system, a $5,900 capital recovery fee to connect his house to its sewer system, and a $1,500 tap fee

* Pursuant to Code § 17.1-413, this opinion is not designated for publication. to add the meter box and related items. BRWA also charged Chastain application and deposit fees

and a water meter fee. Chastain declined to pay these fees and attempted to make the connections

anyway. As a result, BRWA charged him an additional $1,000 tampering fee. In total, BRWA

required that Chastain pay $13,950 before it would permit him to connect to its systems.

On September 30, 2021, Chastain, pro se, filed a petition in the circuit court seeking an

order that would require BRWA to “charge [him] a reasonable and just Capital Recovery fee” and

“permanently change its Capital Recovery fee policy.”1 BRWA filed a demurrer on the basis that

Chastain’s allegations were “not factual statements,” but rather him “complaining that the

connection fees . . . are not ‘fair and reasonable’ nor . . . ‘just and equitable.’” The circuit court

sustained BRWA’s demurrer and dismissed Chastain’s petition with leave to amend.

Chastain filed an amended petition on December 10, 2021, alleging that BRWA’s water

and sewer connection fees were unreasonable on their face and when compared to neighboring

jurisdictions. He further alleged that the fees were unequally applied because they were imposed

only upon customers building or buying new homes and not those buying existing homes.

Unlike his initial petition, Chastain’s amended petition did not request that the circuit court

determine how much he should be charged or order BRWA to change its fee policy. BRWA

filed another demurrer, which the circuit court overruled.

During a bench trial, Chastain testified that the nearby towns of Rocky Mount and

Altavista charged their customers $2,100 and $4,100 respectively to connect to their water and

sewer systems. He also testified that Amherst County distributed the cost of necessary capital

improvements amongst all its customers and alleged that “[BRWA] has chosen to impose an

1 Chastain also filed a motion for immediate injunctive relief requesting that the circuit court order BRWA to connect his home to its water and sewer systems. On October 20, 2021, the circuit court granted the injunction contingent on Chastain posting a $10,000 cash bond by November 30, 2021. Chastain did not post the bond and subsequently requested that the circuit court “cancel” its injunctive relief order. -2- excessive fee on a small number of its customers.” Chastain proposed that he should pay $3,350,

which he believed to be a “fair and reasonable amount.”

BRWA moved to strike at the conclusion of Chastain’s evidence, and the circuit court

denied the motion. Following the motion to strike, the court stated, in reference to “charg[ing]

[Chastain] $14,000,” that “I’m going to apply the law to the evidence as best I can, but [in] my

opinion, that’s too much money.” (Emphasis added). The court then clarified that “if the

locality has complied with the law, it doesn’t make any difference what my opinion is. You see

I’m not allowed to come in here and just rule what I think the right thing is to do and apply my

personal sense of right and wrong.”

BRWA then presented testimony explaining that it charged a capital recovery fee for new

connections, regardless of location, to pay for the growth and replacement of its systems.

BRWA also submitted its “Rate Information” policy, which reflects that BRWA calculates

capital recovery fees based on the size of the new connection’s meter. This calculation method

corresponds to “how much flow the connection will need.” BRWA further explained that it

notified the public of its proposed fee structure and held a public hearing before finalizing it.

BRWA’s finance director testified that its policy charging connection fees only for new

connections was developed to fund new and future expansion of the water system. BRWA’s

executive director testified that capacity “isn’t just on a given street . . . it’s capacity in the entire

system.” The executive director also explained that BRWA had self-funded a $34,000,000

reservoir project paid for by capital recovery fees and was paying the balance of a $7,000,000

renovation of a second reservoir.

At the close of all the evidence, Chastain stated that he was not disputing “what

[BRWA’s] costs are and what benefits [BRWA] provides everybody.” Instead, he reiterated that

-3- “the $14,000 [BRWA] charged [him] is unreasonable”2 and that BRWA’s fee should be adjusted

“to be in line with neighboring municipalities.” After considering the evidence and arguments of

the parties, the circuit court stated, “I think the reasonable argument can be made” that BRWA’s

connection fee policy “becomes an invalid revenue generating device because it is unreasonable

and being unequally applied.” However, the court proceeded to rule that

[In] the final analysis, do I have a basis for determining the amount, and I’m saying that $14,000, I’ve said it before, I’ll say it again, it’s too much money for a hook up. But what is the amount that is reasonable? Based upon the evidence I have heard, there is no basis for me making such a determination.

The court then dismissed Chastain’s petition, stating, “I don’t think I have any alternative. . . .

I’ve stated my personal belief, but my personal beliefs from this bench is [sic] supposed to be

irrelevant.” The court then clarified that it was dismissing Chastain’s petition for “lack of

evidence.” This appeal followed.

II. ANALYSIS

Chastain argues that the circuit court erred in failing to order BRWA to amend its

connection fee policy because he presented “unchallenged evidence that [BRWA’s] policy was

wrong and unreasonable.” Based on the record before us, we cannot find that the circuit court erred

and, therefore, do not disturb its judgment.3

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