EAST GREENWICH – A class-action lawsuit against the town over impact fees for new construction was settled for $1.7 million, Kelly, Souza, Rocha & Parmenter P.C. announced on Thursday.
The lawsuit was filed against the town regarding charged impact fees for new construction paid to the East Greenwich Fire District. The class-action lawsuit was filed after the R.I. Supreme Court reversed a Superior Court decision and ruled that the EGFD failed to follow the formalities required for the imposition of an impact-fee ordinance.
The impact-fee ordinance was enacted in 2006. The fees were collected as part of the EGFD’s Fire Alarm Plan Review for new construction.
In March, the impacted parties participated in a mediation session with retired former Chief Justice Frank Williams. The settlement resulted in the 89 class members getting refunded between $740.70 to $291,022, each, for a total of $1.1 million. The reimbursements amounted to 85.6 percent of the fees that were originally paid to the EGFD.
“This is a case where developers, local businesses and new homeowners were charged illegal and unauthorized fees for new construction, including some fees which were in excess of $100,000,” stated Attorney Joelle C. Rocha, who filed the class-action suit. “I was honored to represent these 89 fee payers and am very much looking forward to returning a substantial and unprecedented fee award to each of them as a result of the settlement we achieved.”
Class members are expected to receive compensation by mid-July.
The case settled was Pawtucket Credit Union v. The Town of East Greenwich, case number KC-2017-0084.
Chris Bergenheim is the PBN web editor.
