Published
October 20, 2026
Anyone who paid water or sewer capital facilities fees to the City of Raleigh, North Carolina from January 12, 2016 through June 30, 2018 is part of a $26,235,749.27 class action settlement. Payments are automatic: checks are mailed using the City’s own payment records, and the court-approved notice estimates each payer will receive about 105% of the fees paid. There is no claim form.
Current Status
Payments are automatic and there is no claim form. A Wake County Superior Court judge granted preliminary approval on September 24, 2026, and the fairness hearing is set for the December 14, 2026 civil session, with the exact date and time to be posted on the settlement website. November 23, 2026 is the postmark deadline to opt out or object. Checks go out only after final approval and any appeals; no payment date has been announced.Free settlement alerts
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Status
Pending Final Approval
Preliminarily approved Sept. 24, 2026 · hearing week of Dec. 14, 2026 · no payment date announced
Claim Deadline
No claim form required
Nothing to file · November 23, 2026 is the postmark deadline to opt out or object
Estimated Payout
About 105% of fees paid
Estimated net check · pro rata share of $26.2M based on fees paid plus interest
Proof Required
Automatic Payment
No claim form · checks are mailed using the City’s payment records
What Changed Recently?
The Wake County Superior Court signed an order granting preliminary approval in Wardson Construction, Inc., et al. v. City of Raleigh, File No. 19-CVS-010860-910, on September 24, 2026 after a September 21, 2026 hearing. The order approved Angeion Group as the settlement administrator and ordered mailed notice to begin October 9, 2026. The Raleigh City Council approved the settlement terms on August 21, 2026.The settlement follows seven years of litigation that the builders who brought the case had largely won. In September 2024, a Superior Court judge certified the class and entered judgment against the City for the fees collected during the class period plus 6% annual interest. The North Carolina Supreme Court affirmed the class certification on March 20, 2026, and the North Carolina Court of Appeals affirmed the judgment on July 15, 2026. The $26,235,749.27 settlement equals the City’s total liability under that judgment as of July 15, 2026. In the settlement, the City denies the allegations and does not admit liability.
What Was the Lawsuit About?
Raleigh charged a one-time capital facilities fee, based on water meter size, when a property was connected to the City’s water or sewer system, on top of tap and connection charges. For a typical home with a 5/8-inch meter, the combined water and sewer fees in 2016 to 2018 permits came to about $3,050 to $3,250.The lawsuit, filed August 12, 2019, claims the City had no authority to collect the fees. It relies on Quality Built Homes, Inc. v. Town of Carthage, a 2016 North Carolina Supreme Court decision holding that a town’s utility powers did not allow it to charge fees for future water and sewer services. A 2017 state law, House Bill 436, later allowed local governments to charge “system development fees” calculated under set methods, but it did not give retroactive authority for fees collected before October 1, 2017. The City argued that fees charged from September 30, 2017 through June 30, 2018 were lawful under the new law; the court rejected that argument in December 2022.
Who Qualifies?
The settlement class is all natural persons, corporations and other entities that paid water or sewer capital facilities fees to the City of Raleigh under its Schedule of Fees and Code of Ordinances at any point from January 12, 2016 through June 30, 2018. The fee was due when a property was connected to City water or sewer, so payers are typically homebuilders, developers and contractors, but anyone who paid it during that period is included, whoever owns the property now. Class members were identified from the City’s payment records and mailed notice.How Much Can You Get?
The City pays $26,235,749.27 into a common fund within 10 days after final approval. According to the settlement agreement, that total covers $16,477,509.40 in fees collected during the class period, $7,352,975.87 in 6% prejudgment interest through September 16, 2024, and $2,405,264.00 in post-judgment interest through July 15, 2026.Court-approved attorneys’ fees and expenses of up to one-third of the fund, administration costs and service awards of $25,000 for each of the two builder plaintiffs come out first. The rest is split pro rata by each payer’s “Claim Amount”: the fees that payer paid plus 6% annual interest from each payment through September 16, 2024, and interest at the legal rate from September 17, 2024 through August 1, 2026. The court-approved notice estimates that, if all requested fees and costs are awarded, each class member will receive about 105% of the principal fees paid.
Checks not cashed or deposited within 180 days of issuance are paid to the City of Raleigh’s water and sewer enterprise fund, so that money goes back to the City. The administrator must send a written reminder to anyone with an uncashed check at least 30 days before the 180 days run out.
What Proof Is Required?
None. There is no claim form. The administrator calculates each payment from the City’s records of each fee payment and mails a check to the person or entity that made the payment. Under the settlement agreement, the administrator can correct payee names for mergers, name changes, successors and dissolved companies, and can honor a written payee designation from a class member or its authorized representative. Questions about who should receive a payment go to the administrator first and, if unresolved, to the court.What Are the Deadlines?
Requests to opt out and written objections must be postmarked by November 23, 2026. An opt-out request must be signed by the class member, include a name, address and telephone number, and clearly state the intent to be excluded; no one can opt out on behalf of someone else. Objections are filed with the court and served on the parties, and a statement of intent to appear at the fairness hearing is due November 30, 2026, according to the notice. A class member who opts out receives no payment.How Do You Take Action?
Class members who stay in the settlement do not need to do anything to be paid. Because checks are mailed to the address in the City’s records, the official settlement website run by Angeion Group accepts mailing-address updates online; written updates include the Notice ID from the mailed notice. The site also posts the notice, the settlement agreement, the preliminary approval order, the complaint and answers to 25 frequently asked questions.What Happens Next?
Class counsel’s motion for final approval is due December 4, 2026, and the request for attorneys’ fees and service awards is due at least seven days before the hearing. The fairness hearing is set for the December 14, 2026 civil session of Wake County Superior Court in Raleigh; the exact date, time and whether it will be held in person or by WebEx will be posted on the settlement website. Checks are issued only after the court enters a final order and any appeal is resolved or the time to appeal runs out.Sources and Verification
• Official settlement website and its Important Documents page• Order Granting Preliminary Approval of Class Action Settlement (September 24, 2026), Settlement Agreement, Notice of Proposed Class Action Settlement and Complaint, Wardson Construction, Inc., et al. v. City of Raleigh, File No. 19-CVS-010860-910 (Wake County Superior Court)
• Wardson Construction, Inc. v. City of Raleigh, No. 115A25 (N.C. Mar. 20, 2026), and No. COA25-416 (N.C. Ct. App. July 15, 2026), as described in the preliminary approval order
Questions
Do I need to file a claim in the City of Raleigh capital facilities fee settlement?
No. There is no claim form. Checks are calculated from the City of Raleigh’s payment records and mailed to the person or entity that paid water or sewer capital facilities fees from January 12, 2016 through June 30, 2018. Payments are made only after final approval.
How much will each Raleigh capital facilities fee payer receive?
Each payer receives a pro rata share of the net fund based on the fees paid plus interest. The court-approved notice estimates each class member will receive about 105% of the principal fees paid, if the requested attorneys’ fees, costs and service awards are all approved.
Did a court already rule against Raleigh over the capital facilities fees?
Yes. In September 2024 a Wake County Superior Court judge granted summary judgment to the builders and entered judgment for the fees plus 6% interest, and the North Carolina Court of Appeals affirmed it in July 2026. In the settlement, the City denies the allegations and does not admit liability.
What happens to uncashed Raleigh settlement checks?
Checks not cashed or deposited within 180 days of issuance are paid to the City of Raleigh’s water and sewer enterprise fund. The administrator must send a reminder at least 30 days before that period ends and can reissue checks.
What if the company that paid the Raleigh fee has merged or closed?
The settlement lets the administrator correct payee names for name changes, mergers, conversions, dissolutions and successors, and honor a written payee designation from the class member or its authorized representative. Disputes over who should be paid can be taken to the court.
Official Settlement Notice
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Settlement Amount
$26,235,749.27
Case Title
Wardson Construction, Inc., et al. v. City of Raleigh
Case Number
19-CVS-010860-910
Court
Wake County Superior Court, North Carolina
Opt-Out and Objection Deadline
November 23, 2026
postmark deadline
Final Approval Hearing
December 14, 2026 civil session
exact date and time to be posted on the settlement website
Administrator
Angeion Group
Official Website
RaleighCFFSettlement.com
