A North Carolina Superior Court Judge approved a settlement of more than $7 million for claims of unlawfully assessed eviction fees. The tenants of Southwood Realty Company, a North Carolina property management company, initiated the class action in 2018.
The settlement includes $3,750,000.00 in cash and $3,279,343.55 in debt waivers. The class members contended the realty company charged complaint-filing fees, sheriff service fees and attorneys’ fees. Before 2018, these fees were unlawful. However, Southwood denies any wrong-doing.
In addition to the Residential Rental Agreements violations, attorneys alleged the fees violated the NC Debt Collection Act.
Two other property management companies involved in the suit agreed to lesser payments. Bridge Property Management (Wake County) agreed to pay $505,000, and Grubb Management (Raleigh) will pay $475,000.
Maginnis Howard attorneys Edward H. Maginnis and Karl S. Gwaltney represented Angela Stewart alongside Scott Harris and Patrick Wallace of Whitfield Bryson LLP.
In June of 2018, the NC General Assembly passed Senate Bill 224 and changed the law. Going forward, landlords are entitled to personal legal fees that they were not before. However, if you encountered unlawfully assessed eviction fees before SB 224, you may be entitled to compensation.
