Legal Definitions - exaction

An exaction refers to the act of demanding money, a fee, or other compensation that is either excessive, unjustified, or wrongfully imposed. It implies a demand for something that is not legitimately owed or is far beyond what is fair and reasonable, often made by someone in a position of power or influence.

Here are some examples to illustrate the concept of an exaction:

• Example 1: Unofficial Government Fees

  A small business owner applies for a standard operating permit from the local municipality. A clerk in the permits department informs them that while the official permit fee is $100, an additional $200 "expediting fee" in cash is required to ensure the application is processed within a reasonable timeframe, even though no such fee is listed in the official municipal code or public fee schedule.

  This illustrates an exaction because the clerk is demanding an unofficial and unjustified payment beyond the legitimate, published cost of the permit. It's an arbitrary demand for money that is not legally owed.

• Example 2: Excessive Service Charges

  A homeowner hires a contractor to repair a leaky roof. After the repair is completed, the contractor presents an invoice that includes the agreed-upon labor and materials, but also adds a surprise "hazardous weather surcharge" of $500, claiming the work was more difficult due to unexpected wind, even though the weather conditions were normal for the season and no such surcharge was mentioned or agreed upon in the initial contract.

  This is an exaction because the "hazardous weather surcharge" is an arbitrarily and wrongfully demanded fee. It's an unjustified demand for additional compensation beyond the agreed-upon terms, imposed without prior agreement or legitimate basis.

• Example 3: Unjustified Landlord Demands

  A tenant has been renting an apartment for two years under a lease that specifies a fixed monthly rent and a one-time security deposit. Midway through their current lease term, the landlord sends a notice demanding an additional "property maintenance contribution" of $50 per month, threatening eviction if the new fee is not paid, despite no changes to the property's amenities or services, and no such fee being part of the original lease agreement.

  This constitutes an exaction because the landlord is demanding an additional, recurring fee that is not part of the original, legally binding lease agreement and is not justified by any new service or contractual change. It's an arbitrary and wrongful demand for compensation beyond what was contractually agreed upon.