Permit fee responsibility - Contractor vs Homeowner

[Brandon Dinsmore]

Hi All,

I had my hot water heater replaced a year ago through a home warranty. I paid my invoice & that was the end of it... until now. I am turning my house into a rental and when the inspector came she pointed out that a permit had not been pulled. I was told that the contractor was responsible for pulling the permit. They would not pull it unless I paid their administration fee which was $250. I contacted the city of Grand Rapids and filed a complaint so that they had to pull the permit. The company who installed, turned around and billed me $400. I am refusing to pay because I had completed my invoice and never agreed to them doing work which I'm pretty sure they legally had to do because the city made them. 

Has anyone had an experiences similar? I find it hard to believe that they if they take me to collections they will win because I never agreed to this.