ORANGE COUNTY, Calif., Feb. 1, 2001 (PRIMEZONE) -- The County of Orange violated state law when it over-billed (by 230 percent) homebuyers and builders in plan check and inspection fees, an Orange County superior court judge recently ruled. The ruling is the latest in a series of successful legal challenges against local government agencies that charge more for fees than it costs to provide the service -- a violation of state law.
The judge also ruled that the county of Orange has no legal right to keep the $18.5 million surplus created by these over-charges. Nor is the county allowed to spend it for other uses, as county attorneys had claimed. Instead, the judge ruled the County of Orange must refund the money through future fee reductions in an amount to be set in a later court hearing.
The County of Orange charges $3,214 for plan check and inspection fees for new homes, compared with $891 in neighboring Riverside County where the cost-recovery fee tables have been adopted. The county's own study revealed the fund had at least an $18.5 million surplus.
Orange County Clerk-Recorder Gary Granville, joined by other citizen's groups including the Howard Jarvis Taxpayer's Association and the Rose Institute of Local Government in Claremont, called on the Board of Supervisors to refund the surplus by lowering fees. The Supervisors chose instead to fight the action in court.
Over the last several years, the County of Riverside, the City of Moreno Valley, the City of Murrieta, the City of San Marcos, and others have either reduced their fees voluntarily or agreed to do so as part of a legal settlement resulting from a lawsuit filed by San Diego homebuilder Barratt American and the Paladin Group of Palm Springs.
In San Marcos, the city settled the lawsuit for $160,000 and agreed to reduce fees by more than half. In Murietta, the city settled for $600,000, after which Barratt American refunded a portion of the money to homeowners there.
Several other legal actions to reduce illegal fees are pending in the City of San Diego, the County of San Diego, and Encinitas.
"Illegal fees are robbing the homebuyer and destroying affordable housing in California," said Mick Pattinson of Barratt American. "And we will continue to press our case not just against illegal plan check fees, but other fees that are even higher, and just as illegal."
For more information contact Walt McNeill, the attorney for Barratt and Paladin, at (530) 222-8992; Dick McCarthy of the Paladin Group at (760) 327-6528; or Mick Pattinson of Barratt American at (760) 431-0800.
For a copy of the ruling and/or background news clips contact Colin Flaherty at 760-634-0066, or sdcolin@aol.com.
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CONTACT: Barratt and Paladin
Walt McNeill, attorney
(530) 222-8992
Barratt American
Mick Pattinson
(760) 431-0800
Paladin Group
Dick McCarthy
(760) 327-6528
Flaherty Communications
Colin Flahery
(760) 634-0066
sdcolin@aol.com*T