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WASHINGTON—Texas mayors and business leaders filed a class-action lawsuit Friday alleging Homeland Security Secretary Michael Chertoff hoodwinked landowners into waiving their property rights for construction of a fence along the Mexican border.

Members of the Texas Border Coalition said Chertoff did not fairly negotiate compensation with landowners for access to their land for six-month surveys to choose fence sites. The coalition of mayors and business and community leaders is seeking an injunction to block work on the fence.

They also want a federal judge to rescind all the agreements with landowners and to order Chertoff to start again. The department has sought and won access from hundreds of landowners to determine where to build the fence and other barriers to illegal border crossings.

The coalition’s attorney, Peter Schey, said Chertoff violated a 1996 immigration law that requires fair negotiation with landowners.

The lawsuit also names Robert Janson, director of Asset Management at U.S. Customs and Border Protection, as a defendant.

It was filed with U.S. District Judge Reggie B. Walton.

“They hoodwinked property owners” into waiving their property rights, Schey said.

Landowners were visited by officials from Homeland Security, Army Corps of Engineers and Customs and Border Patrol. But the government didn’t send anyone to advise the owners’ of their property rights, Schey said. Some landowners accepted offers of $100 for access to their land.

The Homeland Security Department has repeatedly denied allegations of unfair negotiations, saying it has bent over backward to work with landowners.