After more than two years of litigation, the city of Mooresville has reached a settlement with attorneys in a class action lawsuit filed by builders Lennar Carolinas and M / I Homes.
The lawsuit, filed in November 2018, alleged that the city illegally charged builders and other owners for water and sewage development fees, as well as system development fees, without appropriate approval from the North Carolina General Assembly.
If approved by Iredell County’s Supreme Court Judge R. Gregory Horne, the settlement will see the City of Mooresville invest $ 8 million in a settlement fund, which in this case will be distributed to plaintiffs.
While the court has not yet decided the winner of the lawsuit, both sides have entered into this agreement to end the lawsuit.
The lawsuit was filed on a case in the North Carolina Supreme Court in 2016, Quality Built Homes v Town of Carthage, which found that cities and towns in the state had “no legal authority” to charge property owners as a condition to be billed for the provision of future water and sewage services. For these reasons, the lawsuit would claim that any payments made to the city of Mooresville between November 9, 2015 and June 30, 2018 would be illegal.
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In addition, the lawsuit alleges that fees levied by the city after July 1, 2018 were “unduly created” under a new law passed by the NC General Assembly.