HAMILTON COUNTY, Ohio — A decades-long partnership between the City of Madeira and the Village of Indian Hill could soon come to an end as a Hamilton County judge weighs a lawsuit that may determine the future of water service for Madeira residents.
The legal dispute centers on a 76-year relationship between the two communities, with Madeira seeking to end its current water supply agreement with Indian Hill and transition to Greater Cincinnati Water Works.
Madeira and Indian Hill are currently bound by a 20-year water service contract. However, Madeira argued it has reasonable cause to terminate the agreement before its expiration, citing concerns about the long-term reliability and sustainability of its water system.
During a hearing Wednesday, attorneys for both municipalities asked Judge Christian Jenkins to interpret key language in the contract. The agreement states that either party may terminate the contract upon default, or both parties may agree to end the agreement with two years of written notice to avoid interruptions in service for residents.
WATCH: Here's what attorney for both municipalities said during Wednesday's hearing
The central legal question is what constitutes "reasonable cause" for ending the agreement.
Madeira's legal team argued that its decision to pursue a new water supplier is based on several significant concerns, including: P-FAS contamination issues, infrastructure stability, long-term rate stability, operational resilience and future water supply reliability.
Attorneys for the city said those concerns extend beyond economics and are intended to protect residents.
"The economic reasons are fine in and of themselves, but that wasn't the only reason that city council enacted the ordinance to approve this transition," Madeira's attorney argued during the hearing.
Indian Hill said that the contract does not allow Madeira to terminate the agreement simply because it prefers another supplier.
The village's attorney argued that Ohio law suggests "reasonable cause" should require evidence that the other party failed to meet its contractual obligations or otherwise defaulted.
Indian Hill also maintains that even if Madeira provides the required two years of written notice, the city must continue receiving water service from the village until any transition is fully completed to ensure uninterrupted service.
Following oral arguments, the judge said he would take the matter under advisement before issuing a written opinion.
The decision could determine whether Madeira can move forward with its plans to switch to Greater Cincinnati Water Works and potentially bring an end to one of the region's longest-standing municipal partnerships.
