$4.45M Detroit Water Settlement: How to Claim (No Proof)
By eosguide editorial · Last updated
Detroit water settlement: $4.45M fund pays pro rata credits or cash refunds to high-volume users. Former customers must file by Aug 26, 2026. Current customers get paid for doing nothing at all, which is not a sentence you often read about a water bill.
What happened
Class period: August 1, 2022 through May 31, 2026
- Ajax Metal Processing, Inc. sued the City of Detroit in Wayne County Circuit Court over how the City charges for water. The case is Ajax Metal Processing, Inc. v. City of Detroit, Case No. 23-015314-CB, before Judge Annette J. Berry.
- Detroit charges water in two tiers. Tier 1 covers usage of 0.6 MCF or less. Tier 2 covers usage above 0.6 MCF. MCF means one thousand cubic feet of water.
- The lawsuit says the tiered structure is an inclining block rate that charged high-volume users more than it actually cost the City to serve them.
- The City denies this. It says the two rates fairly split costs between a public-health lifeline rate and a uniform rate. The Court has not ruled on who is right.
- On September 12, 2025, the Court certified the case as a class action. The two sides signed a settlement agreement on June 18, 2026.
- The City agreed to pay $4,450,000 into a settlement fund and to cut the Tier 2 rate by $6.22 per MCF from January 1, 2027 through June 30, 2027.
- This affects people and businesses that used a lot of Detroit water, not the average household. The threshold is an average of at least 1.0 MCF per month.
What you can get
Water Account Credit
Pro rata share
Automatic if you are still a City water or sewer customer on August 26, 2026
Cash Refund by Check
Pro rata share
Only for former customers who file a claim by August 26, 2026
Tier 2 Rate Reduction
$6.22 less per MCF
Applies January 1, 2027 through June 30, 2027
Key dates
| Action | Date | What it means |
|---|---|---|
| Claim deadline | August 26, 2026 | Last day to file a claim |
| Opt out | August 21, 2026 -- this deadline has passed. If you did not exclude yourself by that date, you are in the class and bound by the release. | Keep your right to sue separately |
| Object | August 21, 2026 -- this deadline has passed. Objections not filed and served by that date are treated as waived. | Tell the court you disagree |
| Final hearing | September 25, 2026 at 11 a.m., held by Zoom (ID 573-464-2419). Check https://detroitwatersettlement.com/ for updates before the date. | Judge decides whether to approve |
Who may qualify
- You are a person or business that received water service from the City of Detroit between August 1, 2022 and May 31, 2026
- You paid or incurred water charges during that period
- You used an average of at least 1.0 MCF of water per month during that period
- You did not ask to be excluded from the class by August 21, 2026
- To get a cash check instead of a credit, you must no longer be a City water or sewer customer as of August 26, 2026
How to file
- First check which group you are in. If you are still a City of Detroit water or sewer customer on August 26, 2026, you do not file anything. Your credit is automatic.
- If you are no longer a City water or sewer customer, go to https://detroitwatersettlement.com/submit-claim
- Fill in your name, address, and the time period when you paid or incurred the water charges
- Sign and submit the online form, or download the paper Claim Form from the Important Documents page and mail it to City of Detroit Water Settlement Administrator, Attn: Claim Forms, 1650 Arch Street, Suite 2210, Philadelphia, PA 19103
- Either way, the administrator must receive your claim on or before August 26, 2026. Mailing it that day is not enough.
Filed this claim?
Save the claim ID, deadline, payout notes, and official link in the free Settlement Claim Tracker. It stores entries in your browser, with no account needed.
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Proof required
- No receipts, bills, or supporting documents are required
- Current customers submit nothing at all, since the City pulls the amounts from its own billing records
- Former customers submit a sworn claim listing name, address, and the periods when charges were paid or incurred
- The claim is signed under oath, so the information you give must be accurate
Payment timing
Nothing is paid until the Court approves the settlement at the September 25, 2026 hearing. Current customers receive a credit applied to their water account over a six-month period. Former customers who file valid claims receive a check from the settlement administrator. If you owe the City an unpaid balance, it is subtracted from your credit or refund first.
Important links
Contact
Extra details
- The claim deadline is August 26, 2026. If you are a former customer, filing is the only way to get any money from the fund.
- No individual payment amount is published. Your share is based on how much you were charged for water volume compared to everyone else in the class, so heavier users get more.
- The $4,450,000 is a gross figure. Attorney fees of up to 40 percent, administration costs, and a service award of up to $20,000 for the class representative come out before anyone is paid.
- If your water account is more than 30 days past due on August 26, 2026, your credit is reduced by what you owe. If the unpaid balance is larger than your share, you get nothing extra and still owe the rest.
- The release is broad. It covers claims about Detroit water rates and service charges from the beginning of time through December 31, 2026, and it also extends through the rate relief period ending June 30, 2030.
- The Tier 2 rate cut of $6.22 per MCF is partly offset by a higher monthly service charge. For a 5/8 inch meter, the service charge rises from $8.68 to $11.09 during that period.
- The opt-out and objection deadlines both passed on August 21, 2026.
- Questions go to the administrator in writing or by email, not by phone to the Court. Do not contact the Court, the Clerk, the City, or the City's attorneys.
- Watch for scams. Use detroitwatersettlement.com only. No legitimate administrator will ask you to pay a fee to receive your share.
FAQ
Who qualifies for the Detroit water settlement?
What is an MCF?
Do I have to file a claim?
How much money will I get?
What is the deadline?
Can I still opt out or object?
What proof do I need?
What if I owe the City money?
When will payments go out?
Is my water rate going down?
Who do I contact with questions?
Info only. Verify details on the official site. Not legal, financial, or tax advice. Legal
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