VENTNOR – City officials have little to say about a lawsuit they knew was coming.
Attorneys Patrick Howard and Simon B. Paris of Saltz Mongelussi Bendesky PC of Marlton filed a class action complaint in Superior Court March 13 on behalf of the Carisbrooke Inn against the city and its commissioners for “unlawful charges” for water and sewer service.
The lawsuit states that the bed and breakfast is being charged multiple annual fixed fees for service, although it is a single property.
Mayor Tim Kriebel declined to comment and referred questions to the city attorney.
Commissioner of Public Works Lance Landgraf said Wednesday morning that he heard the lawsuit was coming and only found out about it via text message Monday evening.
“I haven’t reviewed the lawsuit but will rely on our attorney,” he said.
Landgraf said the city’s ordinances require hotels to pay fees based on a per unit cost.
“It’s always been that way, and it hasn’t changed since we’ve been in office,” he said.
Usage rates are periodically increased, however.
Landgraf said the owners of Carisbrooke Inn LLC, located at 108 S. Little Rock Ave., have complained about the rates for some time.
Howard and Paris said billing charges for their client are being charged multiple annual fixed fees, which they say is a violation of state law. They want a jury trial and seek to end the multiple charges and collect damages in the amount of $5 million in excessive billings. Additionally, nothing in the city ordinance refers to the term “unit.”
They say Carisbrooke Inn has “served the community with pride and passion” but “when faced with these unjustified fees, they are left with no alternative but to bring this class action.”
The attorneys say the charges violate the NJ County and Municipal Water Supply Act and basic equal protection rights guaranteed by the New Jersey Constitution.
The complaint states that Carisbrooke is a single user, has one service line that carries an annual fixed fee of $385 for water with a variable rate of $4.70 per 1,000 gallons of usage and a rate of $5.70 per 1,000 gallons during the summer months, June through August. However, Carisbrooke Inn was charged $7,444.40, which included nine annual fixed fees, plus usage, much more than another residential property in the area.
The press release states that in the fourth quarter of 2024, Carisbrooke Inn was billed $1,868.85 for the use of 31 units of water, while a larger nearby Boardwalk residence used 38 units of water but paid substantially less, $409.80. In comparison, Carisbrooke paid $60.27 per unit of water, while the other residence paid $10.78 per unit.
“There is nothing fair about paying substantial more to use less water…because there is no statutory scheme that permits this ‘per unit’ filling mandate, there is also no way to object and/or appeal any such multi-unit property designation, denying plaintiff and the putative class their due process rights before paying such fees,” the lawsuit states. “These excessive fees create an otherwise unnecessary economic hardship, which left the owners with no choice but to go to court.”
All those who paid more than a single fixed fee are included in the class action.
City attorney Nicole J. Curio of Gruccio, Pepper, DeSanto & Ruth PA of Vineland said the city has no comment at this time and any discussions about the lawsuit with city officials would be held in closed session.
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