CLEVELAND, OH – Cavitch Familo and Durkin is proud to announce a victory for property owners following a decisive ruling in federal court.
The class action suit focused on the City of Cleveland Heights’ annual $100 fee, which it assessed only on real estate investors who reside outside of Cuyahoga County.
In a comprehensive opinion issued Thursday, U.S. District Judge J. Philip Calabrese granted summary judgment in favor of a certified class of property owners in The Crossroads Group, LLC et al. v. City of Cleveland Heights, Case No. 1:23-cv-184 (N.D. Ohio), holding that:
- From January 31, 2021, through June 22, 2023, the City lacked any legal basis to collect the $100 out-of-county registration fee, rendering its collection arbitrary and capricious; and
2. After the City reinstated the fee in June 2023, the charge constituted an unconstitutional taking because it failed the Supreme Court’s Nollan/Dolan “essential nexus” and “rough proportionality” requirements for monetary exactions tied to land-use permits.
The successful litigation was led by Maurice Thompson of the 1851 Constitutional Law Center and Cavitch Attorney Michael Rasor and, who represented the class of plaintiffs.
“Nonlocal investors are the perfect victim; they can’t vote and don’t have connections at City Hall,” Rasor said. “The Constitution does not allow local governments to impose special burdens on a discrete group simply because it is politically convenient to do so.”
The Court’s ruling clears the way for further proceedings to determine appropriate relief for the affected class.
About Cavitch, Familo & Durkin, Co., L.P.A.
Cavitch, Familo & Durkin is a Cleveland law firm that provides comprehensive legal services in areas such as business law, litigation, estate planning, family law and real estate. With a commitment to excellence and a client-centered approach, Cavitch attorneys continue to lead the way in complex litigation and advocacy for their clients.