SCRANTON – Lackawanna County has brought litigation against the City of Scranton, seeking a refund of more than $200,000 in building permit fees it paid in connection with an administrative building renovation.
The County filed suit in the Lackawanna County Court of Common Pleas on March 3 versus the City. Both parties are of Scranton.
According to the County, it renovated the former Globe store located in downtown Scranton for use as an administrative building. The City assessed two fees related to the building permit for the project, for a total of $208,157.04: 1) A lump sum building permit fee in the amount of $107,815.50 and 2) A fee of $100,341.54 for third-party inspections. In accordance with City Ordinance Section 187-7, the fees assessed were calculated on the basis of construction cost.
“The fees were not commensurate with, and were grossly disproportionate to, the City’s actual cost in administering the building permits and inspections. The City collected the fees to raise revenue, rather than to defray the City’s costs in administering the building inspections and permits,” the suit states.
“To avoid a delay in commencement of construction, the County paid the fees to the City, and expressly reserved the County’s rights to seek a refund of all amounts deemed excessive, unreasonable and contrary to Pennsylvania law.”
The fees were paid by checks issued by Quandel Construction Group, Inc. The County reimbursed Quandel for the checks and the City admitted in an email exchange that the fees were at least in part intended to add to the City’s general revenues, according to the lawsuit.
“The City is not legally entitled to the fees collected from the County. The County requested the City to refund the fees. On Dec. 9, 2020, the County submitted a written and verified claim, under 72 P.S. Section 5566(b), for the refund of fees. The City has not provided a written response to the claim, but has verbally refused to refund the fees,” per the suit.
“The action is brought in accordance with 72 P.S. Section 5566(c), which requires that ‘in the event of refusal or failure on the part of authorities of the political subdivision involved to make any such refund of taxes, license fees, penalties, fines or other moneys to which the political subdivision is not legally entitled…then the aggrieved person or corporation shall have the right to bring suit…by instituting an action in assumpsit in the Court of Common Pleas of the county wherein such political subdivision is located.”
For a count of assumpsit, the plaintiff is seeking damages of $208,157.04, plus interest, costs, attorney’s fees and such other relief as this Court deems proper.
The plaintiff is represented by William W. Warren Jr. and Sunu M. Pillai of Saul Ewing Arnstein & Lehr, in Pittsburgh.
The defendant has not yet secured legal counsel.
Lackawanna County Court of Common Pleas case 2021-CV-01014
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com