BILLINGS — Five Billings residents have filed a proposed class action lawsuit against the City of Billings, alleging they and other customers were charged "grossly inflated" water bills after the city switched to a new billing system in the summer of 2024.
Watch the video below:
The complaint, filed in Yellowstone County District Court, accuses the city’s Public Works Department of widespread overbilling and of pursuing collections and water shutoffs despite repeated customer complaints.
Related: 'Grossly inflated': Lawsuit filed against City of Billings following months of disputed water bills
City officials have previously stated that the higher bills were the result of a software transition, a shift from 30-day to 60-day billing cycles, a rate increase that took effect prior to the system change, and increased seasonal water use during a hot summer. The city hired an independent auditor at the request of the City Council in September 2024. A January 2025 audit concluded there were no major problems with the billing software and found bills to be accurate at the time of review.
The lawsuit alleges the audit reviewed fewer than 1% of city meters and failed to address historical discrepancies or inspect the homes of the named plaintiffs.
The plaintiffs — Jeremy Chapman, Kailey Ferguson, Edward Johnston, Nancy Thorson, and Gary Zaccagnini — are represented by Western Justice Associates, a law firm based in Bozeman. They seek to represent a class of Yellowstone County water customers allegedly overbilled beginning in 2024.
For Johnston, the suit has been a long time coming. He and Zaccagnini teamed up last summer and created a Facebook group, called Billings Water Dispute — Citizens REACT, in hopes that more residents came forward to provide billing information to attorneys.
Related: Billings property owners seeking legal action regarding high water bills
“I can't tell you how many emails I've gotten from people expressing frustration and, 'What can we do?'” said Johnston. "Somebody needs to take the bull by the horn. Somebody needs to rally the troops a bit.”
The suit comes as a sigh of relief after nearly two years of fighting his utility bill troubles. Johnston said he moved out of his home in April 2024. After the new billing system was implemented, he said he received a two-month bill of nearly $900 in September, followed by a single-month bill of about $3,600 that indicated 346,000 gallons of water use, despite the house being vacant.
“I think this is a sign that, no, we're not going away," said Johnston.
Attorneys Domenic Cossi and Jory Ruggiero filed the suit Feb. 6, days after one plaintiff’s water service was shut off.
"Shutting off people's water in winter is obviously a pretty harsh consequence for what is clearly something wrong going on with the billing process,” said Cossi.
The lawsuit asks a judge to halt collections and shutoffs tied to disputed bills, requires the city to identify affected customers, and refunds money collected on what the plaintiffs describe as unjust charges. It also demands a jury trial.
"The case is about fundamental fairness and getting to the bottom of what's going on," said Ruggiero. "All the taxpayers and the city council have an interest in making sure that everybody's treated fairly."
The complaint asserts six legal claims, including breach of contract, negligence, deceit, and requests for declaratory and injunctive relief.
The suit states that Johnson was billed $302.38 while the home remained vacant in November 2024, followed by several months showing no water usage. When he contacted the city about the earlier high bill, he said he was told he may have left sprinklers running overnight, which is something neighbors disputed.
Ferguson, who was renting a home, was billed $2,510 for a 31-day period and 245 kilogallons of water. Before the system change, the suit states, her household averaged about 10 kilogallons over 76 days for roughly $240.
An inspection found no leaks, but Ferguson was still forced to pay. Ferguson and her family had moved out of their house in February due to the high cost.
Related: Billings residents continue fight against high water bills
“They basically told us there's nothing more we can do. The meters are correct is what they told us. So, whatever is flowing through those meters is what you need to pay,” Ferguson told MTN in 2025.
The plaintiffs allege that the city offered inconsistent and easily disprovable explanations for the high bills, including leaks, malfunctioning sprinklers or water theft, and that some residents paid disputed amounts to avoid losing service. Others, the complaint says, experienced financial strain, emotional distress, or were forced to move.
The case now moves to the early procedural stages. A judge must decide whether to certify the case as a class action, which would allow other affected customers to be included automatically unless they opt out. The court also could consider requests to temporarily halt collections or shutoffs while the case proceeds.
Mayor Mike Nelson and City Administrator Chris Kukulski said they are aware of the lawsuit that was served to the city on Wednesday, but they declined to comment because the city has not filed a formal response.
For residents such as Johnston, the lawsuit represents a push for answers after months of frustration.
"No one wins if litigation like this goes to term ... At the end of the day, it's more cost to the taxpayers," said Johnston. “My hope is that Public Works, City Council just stops, puts their pencils down, and says, 'Let's look at this differently.' I'm not trying to get this fixed for me, Gary's not trying to get it fixed for him, we're trying to get this fixed for all residents."
PREVIOUS Q2 COVERAGE
City says 50 Billings ratepayers without water following service shutoffs
'They don't care': Billings residents angered after city shuts off water
City of Billings shuts off water for 147 unpaid accounts
Billings plans January water shut-offs for 300 customers, starting with the largest balances
'Disbelief': Billings property owners upset by city reinstating late fees for water bills
Billings residents continue fight against high water bills
City of Billings gives timeline for water shutoff amid high water bills
