Apartments Downtown appeals class action suit

Iowa City’s largest property management company is appealing the certification of a class-action lawsuit to the state’s high court.

Apartments Downtown has filed an appeal with the Iowa Supreme Court asking for a reversal of a July district court ruling that deemed lease provisions used by the landlord illegal and approved a class-action suit filed by former tenants.

The ruling came four-and-a-half years after the Iowa Tenants Project filed for a class action on behalf of former renters who allege Apartments Downtown charged illegal fees and withheld unreasonable amounts from security deposits.

Iowa City attorney Christopher Warnock, who has headed up the nonprofit Iowa Tenants Project, said Tuesday the appeal likely will result in the Nov. 3 bench trial date being moved back. While the district court judge issued a summary judgment on behalf of the tenants, a trial is necessary to determine damages owed.

“I don’t think it’s a good use of anybody’s time to do this stuff,” Warnock said of the appeal. “This is the third time looking at the same issue.”

A message left with Apartments Downtown on Tuesday seeking comment was not returned.

Warnock has said that at least 6,000 former Apartments Downtown tenants rented from the company under leases with illegal provisions from 2010 through 2014, before the landlord altered its lease. He has said that could amount to millions of dollars in security deposits withheld and fees illegally assessed during that time.

The Iowa Supreme Court will hear another case involving Warnock and Apartments Downtown this fall. On Sept. 17, the court will listen to oral arguments in Elyse DeStefano v. Apartments Downtown., a case involving undergraduate tenants who rented from Apartments Downtown and were allegedly billed for repairs after a burglar kicked down their door. Warnock is representing the plaintiff.

Reach Josh O’Leary at joleary@press-citizen.com or 887-5415, and follow him on Twitter at @JD_OLeary.