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A pair of class actions filed by California restaurant owners continues a growing trend of legal action over permit fees paid by businesses while they were closed due to COVID-19 lockdowns.
In addition, Fresno County announced Wednesday that it would offer fee credits to restaurants closed due to COVID-19.
Permit Fee Class Actions
A pair of class actions lodged by California restaurants recently continues a trend starting earlier this year when a group of Orange County eateries filed a complaint about taxes and fees paid to state regulators during government-mandated COVID-19 lockdowns.
The Old Spaghetti Factory in Rancho Mirage of Riverside County, along with several other local restaurants have filed a class action lawsuit against the county Department of Environmental Health and the California Department of Alcoholic Beverage Control, along with other health agencies in California. The lead plaintiffs claim that the agencies should have suspended the collection of fees for businesses to maintain their operating permits when they were forced to close during COVID-19 lockdowns.
In their complaint, the restaurants point out, “70 percent of California’s restaurant owners are at risk of being evicted … as the bills pile up, including fees, taxes and other charges levied by the same government entities restricting restaurants’ ability to fully operate.”
“We view this as significant government overreach,” the plaintiffs’ attorney told reporters. “The defendants collected fees at a time during the pandemic when officials were ordering the business to shut down, or drastically limit operations.”
Days earlier, Sonoma County favorite Costeaux French Bakery also filed a class action lawsuit over permit fees paid during pandemic lockdowns.
“California’s restaurant owners are struggling to pay their bills and keep workers employed,” alleges the lawsuit filed on April 9 in Sonoma County Superior Court.
The restaurants claim in their class action lawsuits that they understand the need for pandemic lockdowns, but object to the continued collection of permit fees by the government while they struggled to stay afloat. The plaintiffs say that their struggle continues, with limited seating under current mandates and the threat of additional restrictions.
Fresno County Offers Permit Fee Refunds
In response to owner complaints about permit fees paid during lockdowns, Fresno County has reportedly offered a fee credit.
More than 2,000 Fresno County restaurants and bars will be issued the fee credit, according to a news release issued Wednesday. Nearly 1,000 establishments with seating up to 50 will each get a $205 fee credit and more than 700 restaurants with seating over 50 will get a $272 fee credit. A total of 348 bars will get a $303 adjustment each.
“In Fresno County, we want to work with our local restaurants to help them get back on their feet,” said Fresno County Department of Public Health Director, Dave Pomaville in a statement. “We were glad to do what we could to bring them this modest amount of relief and we hope it will help them reopen safely.”
The lawyer representing many of the plaintiffs in restaurant permit fee class action lawsuits said the move by Fresno county is “a promising sign” for other California restaurants who paid permit fees while they were unable to operate during COVID-19 lockdowns.
Do you operate a business that was closed during pandemic lockdowns? Were you required to pay fees to maintain your permits? We want to hear from you! Tell us about your experience in the comment section below.
The lead plaintiffs in the Riverside and Sonoma County class action lawsuits are represented by Brian Kabateck of Kabateck LLP and Timothy Blood and Leslie Hurst of Blood Hurst & O’Reardon LLP.
The Sonoma County Restaurant Permit Fee Class Action Lawsuit is Costeaux French Bakery, Inc. v. County of Sonoma, et al., Case No. SCV-268167 in the Superior Court of the State of California for the County of Sonoma.
Read About More Class Action Lawsuits & Class Action Settlements:
- Orange County Restaurants Challenge Permits & Fees in COVID-19 Suits
- Chicago Restaurants Sue Insurance Company for Denied Business Interruption Claims During COVID-19 Shutdowns
- Coronavirus Business Interruption Insurance Lawsuit Investigation
- Do You Qualify: Delivery Service Hidden Charges | Massachusetts & New York Lawsuit
4 thoughts onPandemic Lockdown Blowback: Permit Fees Prompt Business Class Actions, Refunds
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I am a business owner in the City of Beverly Hills – my skin care salon was forced closed for 14 months! We were not allowed to operate at all!! Yet the City of Beverly Hills said there was NO forgiveness for the business tax license $296 which I had to pay even though I was closed AND have just billed me beginning October for a ‘fire inspection fee’ (was $53 in 2019) with a 425% increase to $278!!
I am in los Angeles business owner and was and still gouged by covid permits. Harassment as well. Westwood autobody pls reach out add me to the list.