San Juan County is the target of a potential class action lawsuit for allegedly over-billing for building and land-use fees, and for the alleged misuse of the fees that it did collect as well.

Initiated March 9 in San Juan County Superior Court, the lawsuit filed on behalf of Community Treasures, formerly known as Consignment Treasures, contends the county Community Development and Planning Department collected fees in excess of what is allowed under state law over a three-year period and that applicants that paid those fees are entitled to a collective refund of no less than $1.2 million.

Friday Harbor attorney Nicholas Power said in a press release announcing the lawsuit that state law, in general, requires fees associated development applications be set at a “reasonable” amount and that the revenue generated by such fees is to be used solely to cover the cost of processing applications, reviewing plans and conducting inspections.

That law, RCW 82.02.020, is designed to prevent governmental entities from using permit fees to cover the cost of unrelated programs and expenses, Power said.

“The intent of this law is clear and it is there precisely to prevent local government from using permit fees as clandestine and non-legislative taxes, which in all fairness should be borne democratically,” he said.

The lawsuit comes on the heels of a whistleblower claim, filed in early February, in which CDPD’s chief building official contends the price of development-application fees exceed the cost of service and the department used revenue generated by the fees to pay for programs unrelated to the building division.

The building official, represented also by Power in a labor dispute, was placed on paid administrative leave Feb. 11 pending the outcome of management review of alleged employee misconduct.

Power said the court must first determine whether the complaint filed on behalf of Community Treasures warrants “class-action” status before such a lawsuit can proceed. If it does, the plaintiff would then be ordered to notify anyone that could be a party to the suit and to explain the circumstances of the legal action.

A date for the determination hearing has yet to be set, Power said.