A preliminary settlement has been reached in a 5-year-old class-action lawsuit between around 14,000 tenants and Iowa City’s biggest landlord company, Apartments Downtown.
Christopher Warnock, a lawyer with the Iowa Tenants Project, said a judge gave the settlement preliminary approval on Tuesday. A hearing has been set for final approval on July 18, where objections will have a chance to be heard.
“We’re really trying to change it from a war between landlords and tenants to a partnership,” Warnock said.
The preliminary settlement stipulates that all tenants who rented with Apartments Downtown or Apartments Near Campus between 2010-2014 would receive $65 for every year of their tenancy.
Warnock said the amount is related to mandatory carpet-cleaning charges in leases that every tenant was charged with. Although there were other illegal parts in the leases, not everyone was charged for them.
The settlement also includes a court order that Iowa Tenants Project lawyers will represent tenants informally or in court if they are unable to reach an agreement with Apartments Downtown. Warnock called the court order “a mechanism of enforcement.”
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Warnock estimated the case in total could potentially cost Apartments Downtown more than $1 million, which is largely dependent on whether every tenant affected by the decision registers to receive the $65.
“Apartments Downtown really changed their tune, and they’re putting their money where their mouth is,” he said.
Warnock said no comprehensive list of tenants currently exists, but those affected can find more information and register at adisettlement.com.