Is Merrillville engaged in racketeering and conspiracy against a group of nine black families in the Innsbrook subdivision, or are the town and residents simply fighting over whether a retention pond works properly?

Ultimately, a federal judge or jury may have to decide.

Attorney Elizabeth D. Norwood, of Griffith, on Monday filed a federal civil lawsuit on behalf of nine African-American families against the town of Merrillville, a slew of current and former elected and appointed officials, and the developers and engineers of Innsbrook.

The plaintiffs are residents of Innsbrook Units 5, 6 and 7. They say that since the developers -- Ross Innsbrook Development Corp. -- changed a dry drainage area to a retention pond in 2001, they have faced flooded streets, properties and basements.

They contend the faulty work went forward with the town's knowledge, resulting in a defective pond and subdivision. They contend the town has failed to protect its residents and even caused a frivolous lawsuit to be filed against one of the plaintiffs.

They argue the town and others have engaged in criminal mischief, official misconduct, conflict of interest and intimidation in furthering a conspiracy to enrich the individuals and companies behind Innsbrook.

Norwood said the suit is similar to one she had filed, but withdrew, in federal court. She said filing the civil lawsuit in U.S. District Court in Hammond allows her to argue civil rights violations.

"These people have been totally screwed, and (the town) is trying to cover it up," Norwood said. "The town is going to have to raise taxes to pay the judgment."

The racketeering and discrimination claims could cause a jury to award millions in damages against the town, she said.

"The taxpayer ramifications are really, really ugly," Norwood said. "The whole town is going to have to pay for it."

Steve Bower, attorney for the town, said he and town officials see the matter in a less sinister light.

"It simply has to do with the engineering of the retention pond in Innsbrook Unit 6," Bower said. The dispute, he said, is only a continuing fight over whether the retention pond is functioning properly.

"The town feels it is. (The plaintiffs) feel it isn't," Bower said.

The town and residents have been at odds on the issue since 2004.