Settlement reached in landlord-tenant class action suit
The Iowa City Tenants' Project has again reached a settlement in a landlord and tenant class action lawsuit.
A Johnson County District Court judge on Wednesday approved the settlement, filed jointly by Tenants' Project attorney Chris Warnock and attorneys representing landlord Tracy Barkalow and his property ownership and management companies.
In a two-page ruling, Judge Ian Thornhill wrote that the settlement agreement would be accepted and plaintiffs named in the case would receive security deposit refunds within 30 days of the ruling. Those plaintiffs and refunds include Brooke Staley, $844; Tyler Lammer, $850; Shelby Burdette, $255; and $900 to be split between Dakota Thomas, Bradley Pollpeter and Dylan Thieman.
Per the settlement, all members of the class — those who rented from TSB Holdings and Big Ten Property Management during lease years 2010-11 and 2011-12 — are eligible to receive $65, or up to $130 if they were tenants both years.
The original case challenged illegal provisions included in leases for Barkalow's property management companies.
In March 2014, Judge Douglas Russell granted the Tenants' Project class action certification and ruled that several provisions in the leases, including one that imposed an automatic fee for carpet cleaning when a tenant moved out, were illegal. Other illegal provisions included fees, fines, penalties and charges that go beyond actual, proven damages, and provisions that removed the landlord’s liability in a number of areas, including for injuries and loss of property related to theft, fire or other circumstances.
According to the settlement, the dollar amount for the class award is $10,400 to be dispersed in $65 payments to former tenants. The settlement stipulates that, if there are fewer than 160 class members registered, leftover money will be donated to a mutually agreed charity or the state of Iowa. If there are more than 160 eligible registered class members, payments to tenants will be reduced proportionally.
Warnock said via email that tenants who rented from 2010 to 2012 can find more information and register to collect repayment at the Iowa Tenants' Project website. The deadline to register is Dec. 15, according to the Tenant's Project website.
Wednesday's ruling comes less than a month after the Tenants' Project reached a settlement with Iowa City's largest property management company, Apartments Downtown. That settlement established a complaint process in which Apartments Downtown will pay to retain attorneys from the Iowa Tenants' Project to represent its tenants over the next three lease years.
Warnock has said the aim of the class action cases is not to receive large payments from landlords but to ensure that renters have a right to legal leases and to defend themselves in court.
Reach Andy Davis at 319-887-5404 or at aldavis@press-citizen.com, and follow him on Twitter as @BylineAndyDavis.