A proposed settlement has been reached in a Fair Debt Collection Practices Act class-action that will see the defendants pay $60,000 in compensation to the members of the class as well as plaintiffs’ attorney’s fees and costs of up to $150,000.
The Background: The defendant filed an eviction lawsuit and collection proceeding against one of the plaintiff on behalf of a landlord. The defendant sent an email to the plaintiff that included a “Stipulation and Advisement,” which informed the plaintiff that she had 10 days to work out the situation with her landlord or move out. The document also informed the plaintiff she could ask for more time to vacate the property, but that it was up to the landlord to grant that request. Finally, the document said that if the plaintiff moved out before the agreed-upon move-out date in the document, it triggered the defendant’s “obligation to vacate any possession judgment and dismiss your case. Thus, by signing and complying with a Stipulation, you are guaranteed not to have an eviction judgment (judgment for possession) on record with the Court.”
- The plaintiff filed suit, alleging the document violated the FDCPA because it leveraged payment of both unpaid rent and additional amounts and misled the plaintiff into believing she could stay in her residence and that any claim against her would be dismissed upon vacating the unit.
The Proceedings: The defendant lost after filing a motion to dismiss, as well as filing a motion for reconsideration and interlocutory appeal.
The Settlement: Each of the 249 members of the class will receive $240 each, while the named plaintiff will receive $10,000. The plaintiffs’ attorneys will receive up to $150,000.
- The defendant will also vacate judgments that were entered against members of the class and revise its procedures
- The defendant denied all claims and allegations.
