The U.S. District Court for the Middle District of Tennessee preliminarily approved a $1.4 million class action settlement in a case challenging a Nashville ordinance that created a stormwater capacity fee to fund improvements to the city’s stormwater system.
Last December, the Beacon Center of Tennessee filed a lawsuit on behalf of Nashville homeowner Peyton Pratt, challenging the stormwater fee, passed by the Metro Nashville Council in 2023 and implemented at the beginning of 2024, which charges individuals seeking a development permit a fee to fund capital improvements to the city’s stormwater system.
Pratt paid a stormwater capacity fee of over $6,000 when he rebuilt a larger house on his already-owned property.
Big news! 💥 The U.S. District Court for the Middle District of Tennessee has preliminarily approved our $1.4M class action settlement in the fight against Nashville’s stormwater capacity fees.
What’s next? Read more:https://t.co/jtbK2FeiA6
— Beacon Center of TN (@BeaconTN) July 22, 2025
The Beacon Center argued in its initial complaint that Metro’s fee places the burden of funding stormwater improvements “squarely on people who are seeking a permit to build” rather than “distributing the costs of the improvements evenly among all residents who ostensibly benefit from the stormwater system.”
Last month, the Beacon Center proposed a settlement with Metro Nashville, which would have Metro issue full refunds to 361 affected property owners who have paid the stormwater fee, including Pratt, pay the Beacon Center $5,000 in attorney’s fees, and cease collecting stormwater capacity fees.
The U.S. District Court granted preliminary approval to the settlement last week. A final fairness hearing is scheduled for October 30.
Within 28 days of the court’s order, each eligible homeowner who has paid a stormwater capacity fee will receive a notice and claim form by mail, along with a prepaid envelope for returning it.
In order for a homeowner to claim a refund, according to the Beacon Center, completed forms must be submitted by November 13, to Metro Water Services.
The Beacon Center called the court’s preliminary approval of its settlement with Metro Nashville a “crucial step forward in securing justice for 361 homeowners who were unfairly charged fees before receiving building permits.”
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
Photo “Stormwater Drain” by Mississippi Watershed Management Organization. CC BY-NC 2.0.
