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June 01, 1999
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Case No: Unknown
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California
Superior Court
County of Riverside
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Paladin Group
Barratt American and the Building Industry Defense Fund
Represented by: Walter McNeill
v.
City of Murrieta
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Summary
Suit Benefits Homeowners
We fought city hill on excessive building inspection fees. And won. And lower prices, even refunds, for California homebuyers will be the result.
The fight was in Murrieta, where our lawsuit alleged the City of Murrieta was violating state law by charging 200 to 300 percent more for building fees than it was entitled to collect. This amounted to more than $1,000 per home.
Earlier this month the city agreed to settle the suit by reducing building fees by as much as $1,300 per home; refunding overcharges made on recently built houses; adopting a new, lower fee schedule known as the Paladin Group Tables; eliminating (higher) fees set by the International Conference of Building Officials; and allowing the Paladin Group authority to monitor and enforce these changes.
The homebuyer refund is unprecedented in California. And the fee reduction is being using by building industry officials throughout the state to justify our calls to lower building fees in accordance with costs. This will help reduce home prices.
Prior to the lawsuit, the City of Murrieta charged $1,830 per unit for building inspection and plan check. As a result of the settlement, these fees will be reduced by as much as $1,300 per unit to $488. And more.
As part of the settlement the City of Murrieta agreed to pay the plaintiffs Paladin Group, Barratt American and the Building Industry Defense Fund a total of $600,000. Part of that will be used to refund $100 each to the 2,030 homeowners who bought in Murrieta subsequent to the lawsuit. In addition, Barratt is refunding its homebuyers in Murrieta another $570, because we feel that homebuyers are the ultimate source of all building fees.
In the settlement agreement the city also admitted that its method to calculate fees was "unreliable, inaccurate and improper." And it pledged to change the way it calculates fees for building inspection services; promising to adhere to the Paladin tables which more accurately reflect the cost of providing these services.
Building industry officials and city planners throughout the state have been watching the litigation with interest, with both sides expecting this decision to set precedent in other cities throughout the state.
If this is of any interest, Dick McCarthy of the Paladin Group (1-760-327-6528), our attorney Walter McNeill (1-530-222-8999), a Murrieta homeowner, and myself will be available to answer any questions. Call 619-280-4994 for a copy of the settlement agreement or clips on the topics.
Mick Pattinson
President, Barratt American Inc.
Carlsbad
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Causes of Action: Excessive building inspection fees
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