KETCHUM, Idaho (AP) — A federal judge has ordered the city of Hailey to pay attorney fees to a developer who challenged the city's annexation fees as exorbitant and won. The Idaho Mountain Express reports that U.S. Bankruptcy Court Judge Jim J. Pappas earlier this month ruled the city must pay Old Cutters Inc. $99,178.

Hailey charged $3.8 million in annexation fees though a study found the annexation would cost only $788,000. Old Cutters and Mountain West Bank challenged the fees and Pappas in December ruled that Hailey used powers it had not been granted in Idaho when it created the contract.

Pappas in the latest skirmish ruled that Old Cutters was entitled to attorney fees after rejecting the city's argument that if portions of the agreement were ruled void, then the entire agreement is void.