Raleigh, North Carolina has agreed to put $26,235,749.27 into a settlement fund for people and companies that paid its water and sewer capital facilities fees from 2016 to mid-2018. Checks of about 105 percent of the fees paid would go out automatically, with no claim form, once a Wake County judge gives final approval. That hearing is set for December 14.
Where the 105 percent comes from
The fund is made of three pieces, Open Class Actions reports: $16,477,509.40 in fees the city collected during the class period, $7,352,975.87 in 6 percent prejudgment interest through September 16, 2024, and $2,405,264 in post-judgment interest through July 15, 2026.
Those three amounts add up to the $26.2 million. After attorneys’ fees of up to one-third and administration costs come off the top, what remains works out to a check of about 105 percent of the fees a payer handed over, if the court approves every requested fee and cost. The figure is an estimate, not a promise.
Each payer’s share is measured the same way: the fees paid, plus 6 percent annual interest through September 16, 2024, plus the legal rate from September 17, 2024 through August 1, 2026.
Builders and developers paid most of the fees
The fee is a one-time charge based on water meter size, collected at connection on top of tap charges. For a typical home with a 5/8-inch meter in 2016 through 2018, Open Class Actions puts the combined water and sewer fees at about $3,050 to $3,250. Because builders pay at connection, the class is mostly homebuilders, developers and contractors rather than later buyers.
The class is defined by who paid, not who owns the property today. Any person, corporation or other entity that paid Raleigh’s water or sewer capital facilities fees from January 12, 2016 through June 30, 2018 is in. Claim Depot reports that class members were identified from the city’s own payment records and that notices went to those believed eligible.
Retirement deadlines, in your inbox: Miss an enrollment or claim deadline and the money can be gone. Join the Retirement Money Brief and we’ll send you our Open Settlements & Refund Tracker as a welcome gift.
Get the Brief + the settlements tracker →
We may earn a commission from links on this page.
Two builders, including Wardson Construction, sued in 2019 in Wake County Superior Court in Wardson Construction, Inc. v. City of Raleigh, File No. 19-CVS-010860-910. Plaintiffs argued the city had no lawful authority to charge the fee until July 2018. The city denies the allegations and does not admit liability.
Courts had already gone the plaintiffs’ way. Judgment was entered in September 2024 with 6 percent interest, the North Carolina Supreme Court affirmed class certification on March 20, 2026, and the Court of Appeals affirmed the judgment on July 15, 2026. The Raleigh City Council approved the settlement terms on August 21. Courts had earlier ordered Charlotte and Greensboro to refund millions of dollars in similar water and sewer impact fees, Milberg noted.
Jim DeMay of Milberg, one of the class lawyers, said in a 2024 statement after the judgment that the court’s decision was “in line with all the prior judicial precedent on this issue.” His colleague Hunter Bryson said the class looked forward to “finally being refunded these illegal fees,” according to Milberg’s account of the ruling.
The dates that come before any check
Judge approval has two stages. The court gave preliminary approval on September 24, 2026 after a September 21 hearing, and notices began going out on October 9. The opt-out and objection deadline is November 23, postmarked, and a statement of intent to appear is due November 30.
The motion for final approval is due December 4, and the fairness hearing is December 14. The settlement website says the court “still has to decide whether to approve the Settlement” and that payments will not be provided unless it grants final approval. The city pays the fund within 10 days after that.
Checks then go out from the administrator, Angeion Group, to the last known address in the city’s records, and no payment date has been announced. Anyone who stays in the class and does nothing is in line to be paid; anyone who opts out gets nothing from this fund.
Uncashed checks and other ways the money gets lost
Checks not cashed within 180 days go to the city’s water and sewer enterprise fund, and the administrator must send a reminder at least 30 days before that period ends. A payer who moved, merged or dissolved since 2018 is the most likely to miss the mail.
The administrator can correct payee names for mergers, name changes, successors and dissolved companies, according to Open Class Actions. Class members with a changed address can reach the settlement administrator at Info@RaleighCFFSettlement.com or 844-430-4361, the contacts Claim Depot lists.
Class members who opt out keep the right to sue on their own but receive no payment. The service awards of $25,000 each to the two builder plaintiffs are also paid from the fund.
Anyone who paid Raleigh capital facilities fees in those 30 months still has two jobs before December: confirm the mailing address on file, and decide whether to stay in or opt out by November 23.
Will the Raleigh refund check find the right payer?
No claim form means no filing deadline to focus on, and the risks are quieter: a notice that went to an old address, a check that sits uncashed past 180 days, or an opt-out date that passes. Companies that merged or dissolved since 2018 are the likeliest to lose track.
This story is about an automatic payment rather than a claim, so the kit’s job is tracking. The Settlement & Refund Recovery System lays out the four-date rule for reading a settlement notice and includes a claim log and payment tracker, with Part 6, File It Right, and Actually Get Paid, for following a payment to the bank. The tracker holds notice dates, the opt-out date and the 180-day cashing window in one place.
Get the notice-date rule and payment tracker for automatic settlement checks →
More Financial Reading
- 21 Ways to Stretch a $2,087 Social Security Check
- 15 Places to Find Your Share of the $4.25 Billion States Give Back
- 15 Ways Out of 22% Credit Card Interest
This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
