(The Center Square) – A federal judge had granted final approval for a $1.4 million settlement in a class-action lawsuit by a nonprofit group against the city of Nashville over fees charged to homeowners for upgrades to the stormwater system.
The lawsuit challenged Nashville’s requirement that property owners pay for stormwater upgrades before receiving building permits.
Under the settlement, 361 homeowners are entitled to full refunds for the fees they paid the city.
“This ruling is a landmark win for property owners and sends a clear message that government overreach will not go unchecked,” the nonprofit group, Beacon Center of Tennessee, said in a statement. “This settlement shows that the government cannot hold homeowners hostage, forcing them to pay fees just to use their own property, or single out a few residents to foot the bill for a service that benefits a broader group.”
Peyton Pratt, lead plaintiff in the lawsuit, was charged more than $6,000 in stormwater fees for expanding his home, according to Beacon, which represented Pratt at no charge. Pratt paid the fees under protest.
Nashville agreed to the settlement, according to the Beacon Center.
The stormwater fees unfairly singled out property owners who wanted to improve their property rather than the population at large, according to the Beacon Center.
“If Nashville wants to improve its stormwater system for all Nashville residents, it may not single out and force residents who are seeking development permits to shoulder all the costs,” the nonprofit said.
The stormwater fees also drove up the cost of housing, making it more difficult to construct affordable homes, the lawsuit alleged.
The Center Square was unsuccessful getting comment prior to publication from the city of Nashville.
