Lawsuit against Prospect Hts. thrown out, but city is still suing residents

A Cook County Circuit Court judge recently dismissed a lawsuit against Prospect Heights, which had claimed the city botched the approval process for a $2.8 million water project, city officials said.

The city's $100,000 counterclaim against the eight plaintiffs is still in play, said Mike Zimmermann, city attorney.

The city had maintained the plaintiffs' suit was jeopardizing the project by preventing it from taking out loans.

Financial institutions won't enter into such agreements when a major lawsuit is pending, Zimmermann said.

"We told them that this was an element of damage and that didn't bother them," Zimmermann said.

The city's suit it still going forward because it has lost money, not just $15,000 in legal fees, but it also lost the opportunity for a better loan deal before the financial crisis hit the economy last month, he said.

Nick Kefalos, attorney for the plaintiffs, had said his clients had objected to the way the city handled approval of the project, which was the basis of the suit. Also, it was never explained properly how the project would affect the plaintiffs financially, he said.

Kefalos couldn't be reached for comment regarding the dismissal of the suit.

Despite the suits, the city had continued construction to bring Lake Michigan water to 160 properties in the Lake Claire subdivision and along parts of Wheeling Road. Currently, the area uses well water, which city officials say smells and tastes bad.

The majority of the plaintiffs live in homes along Wheeling Road, which is not part of the subdivision.

Construction crews have been laying underground pipes near the corner of Wheeling and Camp McDonald roads, expecting to be finished by the end of the year.