Newark, East Orange End 7-Year Legal Battle On Sewers: Officials

NEWARK, NJ — A seven-year legal battle between the City of Newark and the East Orange Board of Water Commissioners has come to an end, Newark municipal officials announced Friday.

Under the terms of a settlement approved by the Newark City Council on Wednesday, the East Orange Board of Water Commissioners will pay Newark $5.6 million to resolve litigation involving outstanding sewage payments. In addition, as part of a new sewer agreement, Newark will gain the right to charge East Orange a “wheeling fee.”

The deals will end a lawsuit that has dragged on for seven years.

The case – which revolved around billing for sewage costs between the two cities – was “highly technical” and required the assistance of a Superior Court-appointed special master, Newark officials stated in a Friday news release.

According to Newark city officials:

“The new sewer agreement replaces the 99-year-old 1919 Sewer Agreement between the two municipalities, under which Newark only billed East Orange based upon the flow of East Orange’s wastewater through Newark’s wastewater system of pipes to Passaic Valley Sewage Commission (PVSC) for treatment. Newark did not charge for the costs associated with the maintenance and repair of the interconnection of these pipes to PVSC.”

Newark officials said:

“Between 1919 and 2008, East Orange paid Newark 8.658 percent of the cost of Newark’s total sewage flow, to account for its share. Newark later learned that sometime around 2008, Newark was being underpaid, and not receiving full payments in accordance with the agreed-upon rate. East Orange’s failure to pay its fees according to the agreed rate, was one of the reasons Newark filed the instant action in 2011. The claims concerning outstanding sewer payments were part of a larger lawsuit; the other claims in the lawsuit, concerning water issues, were resolved in 2013. Only the issues concerning the outstanding sewer payments remained unresolved.”

Officials added:

“Contemporaneous with, and as part of, the new sewer agreement, the East Orange Board of Water Commissioners will enter into an agreement with the Passaic Valley Sewerage Commission wherein East Orange will become a Direct Bill customer with PVSC. Newark is not a part of the agreement between East Orange and PVSC.”

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