Daedalus, LLC, et al. v. City of Charlotte (Mecklenburg County Case No. 18-CVS-21073) and
Daedalus, LLC v. City of Charlotte (Mecklenburg County Case No. 21-CVS-6852)

A Court authorized this Notice because you have a right to know about a proposed class action settlement and about all of your options before the Court decides whether to grant final approval of the settlement.  This Notice explains the lawsuit, the settlement, your legal rights, what benefits are available, who may be eligible for those benefits, and how to get them.

The Superior Court Division of Mecklenburg County, North Carolina, is overseeing this lawsuit.  The settlement resolves the civil actions known as Daedalus, LLC, et al. v. City of Charlotte (Mecklenburg County Case No. 18-CVS-21073) and Daedalus, LLC v. City of Charlotte (Mecklenburg County Case No. 21-CVS-6852).  

The persons who sued are called the “Plaintiffs,” and the City of Charlotte who was sued is called the “Defendant.”

The City charges System Development Fees to new development as a condition of the City connecting a property to the City’s water and sewer systems.  The City is authorized to charge System Development Fees pursuant to Article 8, Chapter 162A of the North Carolina General Statutes.  

Plaintiffs filed a lawsuit on September 13, 2019 alleging that the System Development Fees charged by the City during municipal Fiscal Years 18-19 and 19-20 (July 1, 2018 through June 30, 2020) violated the provisions of Article 8, Chapter 162A of the North Carolina General Statutes as to how a System Development Fee may be calculated, resulting in an alleged overcharge in the amount of the System Development Fees.  Plaintiffs filed a second lawsuit on April 26, 2021 alleging that the System Development Fees charged by the City during municipal Fiscal Years 20-21 and 21-22 (July 1, 2020 through June 30, 2022), and through the present, also violated Article 8, Chapter 162A of the North Carolina General Statutes and resulted in an alleged overcharge in the amount of the System Development Fees.  The City denies all of these allegations.

The parties have now agreed to a settlement to resolve all claims in the lawsuits regarding the System Development Fees charged by the City from July 1, 2018 through December 31, 2022.  The parties have agreed to this settlement to end the lawsuit and avoid further risk and costs associated with the issues in the lawsuits.

The Court did not decide in favor of Plaintiffs or the City with respect to the issues in the lawsuit.  Instead, both sides agreed to settle this case to avoid the cost and risk of litigation.  The City denies all legal claims in this case.  Plaintiffs and their lawyers think the settlement is best for the class members.

Proposed class action settlements typically get reviewed by a court twice: once for preliminary approval and once for final approval.  As part of approving a class action settlement, courts certify a settlement class.  The Court has given the proposed settlement in this lawsuit preliminary approval and has certified a settlement class.  But the Court cannot decide whether to finally approve the proposed settlement until the final approval hearing.

The Court has approved the following settlement class:

All natural persons, corporations, or other entities who (a) at any point between July 1, 2018 and December 31, 2022 paid Water and Sewer System Development Fees (also called Capacity Fees) to the City of Charlotte pursuant to the schedule of fees and/or Code of Ordinances adopted by the City of Charlotte.

The City has furnished a list of all natural persons, corporation, or other entities who have paid Capacity Fees to the City from July 1, 2018 through December 31, 2022.  You have received this notice because you have been identified from those records as having paid Capacity Fees to the City during this period, and therefore have the right to a refund pursuant to N.C.G.S. § 160D-106.

If you are not sure whether you are a member of the Settlement Class, or have any other questions about the settlement, visit the settlement website at www.CharlotteCapacityFeesSettlement.com or call the toll-free number, (833) 616-1223. You may also write with questions to Daedalus, LLC v. City of Charlotte Settlement, P.O. Box 10269, Tallahassee, FL 32302-2269, or send an e-mail to claims@ssiclaims.com.

A settlement fund in the amount of $16,851,244.12 will be established by the City to pay the claims of settlement class members for System Development Fees paid from July 1, 2018 through December 31, 2022.  This amount equals 10% of all System Development Fee payments collected by the City from July 1, 2018 through December 31, 2022.  Settlement administration costs, attorneys’ fees and expenses, and class representative service awards will be paid from the fund.

Each member of the settlement class will receive a refund of 10% of their System Development Fee payments made to the City from July 1, 2018 through December 31, 2022, less a pro-rata share of settlement administration costs, attorneys’ fees and expenses, and class representative service awards.

For any class member benefit checks that are not cashed or deposited within 180 days of issuance of the checks, those funds will revert to the settlement fund and will be redistributed pro-rata to settlement class members that did cash or deposit checks, thereby increasing the total payment to those settlement class members.

To get a payment, you do not have to do anything if you are a member of the settlement class.  A check will be mailed to you automatically, if and when the settlement is approved.  The City has maintained records of the addresses of all settlement class members, and your payment will be mailed to the same address as this Notice.  If your address has changed, please submit a change of address form available at www.charlottecapacityfeesettlement.com, or contact Class Counsel. 

Payments will be made to settlement class members as follows: 84.9% of the total payment will be made in July 2023, and the remaining 15.1% of the total payment will be made in July 2024.

Unless you exclude yourself, you are staying in the settlement class and will receive your payment.  You can no longer sue, continue to sue, or be a part of any lawsuit against the City about the issues in this case.  It also means that the Court’s orders will apply to you and will legally bind you.

The Settlement Agreement is available at www.charlottecapacityfeesettlement.com.  The Settlement Agreement provides more detail regarding the release and describes the released claims with specific descriptions in necessary, accurate, legal terminology, so read it carefully.  You can talk to the law firms representing the settlement class listed in the section “The Lawyers Representing You” for free or you can, at your own expense, talk to your own lawyer if you have any questions about the released claims or what they mean.

If you do not want to participate in this proposed settlement and you want to keep the right to sue the City about the legal issues in this case, then you must take steps to get out of the settlement. This is sometimes called “opting out” of the settlement class.

No, if you exclude yourself, you will give up your right to receive any payment from the settlement.  If you ask to be excluded, however, you may sue or be part of your own lawsuit against the City concerning the legal issues in this case.  You will not be bound by anything that happens in the settlement. 

Unless you exclude yourself, you give up the right to sue the City for any of the claims that this settlement resolves.  You must exclude yourself from the settlement class to start or continue your own lawsuit relating to the claims in this case.  The full release is stated in the Settlement Agreement and can be viewed at www.charlottecapacityfeesettlement.com. 

To exclude yourself from the settlement and settlement class, you must send the Settlement Administrator a written “Request for Exclusion,” which must include the following: 

1. Contain a caption or title that identifies it as “Request for Exclusion in Daedalus, LLC, et al. v. City of Charlotte;” 
2. Includes your name, address, and telephone number; 
3. Specifies that you want to be excluded from the settlement class; and
4. Be personally signed by you.

You must mail your completed Request for Exclusion, postmarked by April 10, 2023 to: 

Daedalus, LLC v. City of Charlotte Settlement Administrator
c/o Settlement Services Inc.
P.O. Box 10269
Tallahassee, FL  32302-2269

A copy of your completed Request for Exclusion should also be sent to:

If you do not want to be a part of the settlement, but do not send in a Request for Exclusion, you will remain a member of the settlement class and lose any opportunity to exclude yourself from the settlement, and your rights will be determined in this lawsuit by the settlement.  

You cannot ask to be excluded/opt-out by phone,  email, or on the website.

The Court has designated Daniel K. Bryson, James R. DeMay, and J. Hunter Bryson of Milberg Coleman Bryson Phillips Grossman, PLLC; James E. Scarbrough, John F. Scarbrough, and Madeline J. Trilling of Scarbrough Scarbrough & Trilling PLLC; and William G. Wright and Gary K. Shipman of Shipman & Wright, LLP as Class Counsel for members of the settlement class. 

Class Counsel reached this settlement after weighing the benefits of the settlement against the risks involved in continuing the litigation, as well as the delay resulting from further litigation.  Class Counsel balanced these and other substantial risks in determining that the settlement is fair, reasonable, and adequate, and in the best interests of members of the settlement class.

At the final approval hearing, Class Counsel will ask the Court for an award of attorneys’ fees and expenses in an amount not to exceed one-third of the value of the settlement fund.  Any award of attorneys’ fees and expenses ordered by the Court will be paid from the settlement fund.

If you do not exclude yourself from the settlement class, you may, if you wish, object to the proposed settlement, or to any aspect or effect of the settlement.  All objections must contain the following:

1. Contain a caption or title that identifies it as “Objection to Class Settlement in Daedalus, LLC, et al. v. City of Charlotte, Mecklenburg County No. 18-CVS-21073; and Daedalus, LLC v. City of Charlotte, Mecklenburg County No. 21-CVS-6852;”
2. Identify whether the objection is to the settlement class; 
3. Set forth the specific reason(s), if any, for each objection, including all legal support the settlement class member wishes to bring to the Court’s attention and all factual evidence the settlement class member wishes to offer in support of the objection;
4. Include the name and address of the settlement class member; 
5. Be personally signed by the settlement class member or an officer or director thereof with actual authority to bind the entity; 
6. Include an identification, by case style and number, of any other class settlements in which the objector or the objector’s attorney(s) have asserted an objection;
7. Include an identification of all attorneys having a financial interest or stake in the objection; and
8. Include three dates within the calendar month they are submitting the objection in which they can be available for a deposition taken by counsel for Plaintiffs and/or the City.

Your Objection must be filed with the Clerk of Superior Court for Mecklenburg County, North Carolina and delivered to Class Counsel and to City Counsel, no later than April 10, 2023, at the following addresses:

If you do not comply with these procedures and the deadline for objections, you will lose any opportunity to have your objection considered at the final approval hearing or otherwise to contest the approval of the settlement or to appeal from any order or judgment entered by the Court in connection with the settlement.

Objecting is simply telling the Court that you do not like something about the settlement.  You can object only if you stay in the settlement class.  Excluding yourself (opting out) is telling the Court that you do not want to be part of the settlement class.  If you exclude yourself, you cannot object to the settlement, and you will not be eligible to apply for any benefits under the settlement because the case no longer affects you.

On April 24, 2023, at 10:00 a.m., the Court will hold a public hearing in Courtroom No. 6110, Superior Court Division of Mecklenburg County, North Carolina, located at 832 East 4th Street, Charlotte, North Carolina 28202, to determine whether the settlement is fair, adequate, and reasonable and should be finally approved, with judgment entered accordingly.  The Court also will consider the application for an award of settlement administration costs, attorneys’ fees and expenses, and service awards.  This hearing may be continued or rescheduled by the Court without further notice to the settlement class so you should check the website for updates.  If there are objections, the Court will consider them at that time.  After the hearing, the Court will decide whether to approve the settlement. 

No, Class Counsel will answer any questions the Court has.  However, you are welcome to attend the hearing at your own expense.

If you are a Class Member and do nothing, you are staying in the settlement class and will be eligible to receive your payment.  You can no longer sue, continue to sue, or be a part of any other lawsuit against the City about the legal issues in this case.  It also means that the Court’s orders will apply to you and will legally bind you.  

This Notice summarizes the proposed settlement.  More details are in the Settlement Agreement.  You can view a copy of the Settlement Agreement and read a list of Frequently Asked Questions and Answers at the website.  You may also write with questions to Daedalus, LLC, et al. v. City of Charlotte, P.O. Box 10269, Tallahassee, FL  32302-2269 or send an e-mail to claims@ssiclaims.com.  If you wish to communicate directly with Class Counsel, you may contact them at the addresses listed in FAQ #12 or by e-mail at jdemay@milberg.com, hbryson@milberg.com, jfs@sanslegal.net, and wwright@shipmanlaw.com. You may also seek advice and guidance from your own private attorney at your own expense.