City Waives Right to Provide Service

Lake Utilities Services filed a complaint against Clermont, Fla., seeking an injunction and a declaration that it had the exclusive right to provide water service to several areas in Lake County. Both Lake Utilities and the city claimed the exclusive right to provide water service to Lennar Homes Inc. Lake Utilities said it would suffer irreparable injury if the city encroached on its area. The trial court ruled for the city. The appellate court pointed out that the city initially declined to provide water service because it was not economically feasible to do so. Lake Utilities then filed its application to extend its service area so that it could serve the homes. The city did not object. The court said that Lake Utilities expended time and money to construct and operate a water utility in the area. Thus, the city should not be permitted to provide water service to Lennar Homes now because it is economically feasible and profitable to do so more than five years after it first obtained the right to do so. The court said the city, by its actions, had waived the right to provide service to Lennar Homes. The trial court decision was reversed.