Lawsuit claim: Duluth illegally charging millions in building permit-related fees

DULUTH, Min. – A lawsuit is claiming Duluth has illegally high building permit-related fees.  The Duluth lawsuits is similar to others filled against Minneapolis and St. Paul.

The man suing is in Duluth is Joe Kovich.  His lawyer Shawn M. Raiter tells FOX 21,. “Certain cities in Minnesota—including Duluth—have unlawfully overcharged property owners well over $100 million for building permit and plan inspection fees. Minnesota law only allows a city to assess charges that are proportionate to the cost of providing permit and inspection services. Duluth’s own documents show that in the last six years, it charged over $9 million more than its cost to provide building permit reviews and plan inspections. This lawsuit was brought to return the overcharges to property owners and to stop Duluth from violating the law.”

The Duluth portion of the lawsuit was filed in early January 2026.  The suit sites state building code which allow municipalities to charge and collect building permit-related fees. The code says the fees, “must be by legal means and must be fair, reasonable, and proportionate to the actual cost of the services for with the fee is imposed.”  The suit claims the city fees are well beyond those permitted costs.

The other parts of the suit started in 2025.  All sides are filling a number of motions in the case.  They are not slated to be in court again until Mid-April 2026.

Duluth Public Information Office Kelli Latuska tells FOX 21 the city does not comment on active litigation.

While this suit was filed in Duluth, attorneys are asking all of the cases be heard together in Ramsey County – where St. Paul is located.