Duane applied to the municipality of Smallville for a permit to build an addition onto his home. He contacted the municipal offices by telephone to enquire about the fee for the permit. The building official was unavailable, but the municipal clerk told Duane she thought the current fee was $100 per 1,000 square feet. Duane's new addition was planned to be 3,500 square feet, so he attached a cheque in the amount of $350 to his application and delivered it to the building office. When the permit was approved and returned a note was attached to it which read that all building permits now cost a flat fee of $250. No money accompanied the note. Duane contacted the municipal offices requesting a refund of his $100. He was told by the clerk that there was no municipal bylaw authorizing the repayment of excess fees paid to the municipality, so she had no authority to process his refund. She suggested he could apply the extra amount to his municipal property taxes. Duane would probably be unable to obtain the money he paid in error.

Question

Quizplus · Accepted Answer

Duane may be able to obtain a refund because the payment was made based on incorrect information provided by a municipal employee, and the principle of unjust enrichment could apply, meaning the municipality may not be entitled to keep money paid to them in error, despite the lack of a specific bylaw authorizing refunds.

Duane Applied to the Municipality of Smallville for a Permit