The Nashville-based Beacon Center of Tennessee officially secured final approval to a $1.4 million class action settlement in its 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 filed a lawsuit on behalf of Nashville homeowner Peyton Pratt challenging the stormwater fee, which passed the Metro Nashville Council in 2023 and was implemented at the beginning of 2024.
The ordinance charges individuals seeking a development permit a fee to fund capital improvements to the city’s stormwater system.
Justice for Nashville homeowners! 🏡⚖️ Beacon secures final approval of a $1.4M settlement against the City of Nashville, ending unfair stormwater fees and putting money back in the hands of those affected. 361 homeowners can now claim refunds, proving that standing up against…
— Beacon Center of TN (@BeaconTN) October 30, 2025
In its initial complaint, the Beacon Center argued 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.”
Earlier this year, 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, who paid a fee of over $6,000 when he rebuilt a larger house on his already-owned property – in addition to paying the Beacon Center $5,000 in attorney’s fees and ceasing collections of stormwater capacity fees.
On Thursday, U.S. District Court Judge Waverly D. Crenshaw, Jr. signed off on the Beacon Center’s motion for final settlement approval, officially ending the stormwater ordinance.
Each eligible homeowner who has paid a stormwater capacity fee should have received a notice and claim form by mail. In order for a homeowner to claim a refund, completed forms must be submitted by November 13 to Metro Water Services.
“This settlement shows that the government cannot hold homeowners hostage, forcing them to pay fees just to use their own property, or single out a few residents to foot the bill for a service that benefits a broader group,” the Beacon Center said.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
Photo “Rain, rain, go away” by Michael Kuhn CCNCSA2.0
