North Carolina eviction fees $885K class action settlement

Palms Associates and Durham Mews agreed to provide $885,000 in monetary benefits as part of a lawsuit settlement to resolve claims they threatened and charged North Carolina renters illegal eviction fees.

The lawsuit settlement benefits residents of North Carolina properties owned or managed by Palms Associates LLC or Durham Mews LLC (formerly known as Durham Section I Associates) who received a collection letter that threatened to charge eviction fees between Oct. 7, 2016, and June 25, 2018.

The settlement also benefits residents of North Carolina properties owned or managed by Palms Associates LLC or Durham Mews LLC (formerly known as Durham Section I Associates) who were charged and paid eviction fees between Oct. 7, 2016, and June 25, 2018.

Residents may be members of both the collection letter class and the eviction fee class.

The eviction fees class action lawsuit claims Palm Associates and Durham Mews unlawfully charged eviction fees including complaint filing fees, sheriff service fees and attorneys’ fees when filing eviction actions against tenants. In addition, the rental companies allegedly sent unlawful collection letters to tenants threatening to charge these fees.

Palms Associates is a real estate management and development company with properties along the eastern seaboard, including North Carolina. Durham Mews owns apartments and townhomes in Durham, North Carolina.

The defendants haven’t admitted any wrongdoing but agreed to an $885,000 class action lawsuit settlement to resolve these claims. The settlement includes $225,000 in cash benefits and $660,000 in debt relief.

Under the terms of the North Carolina eviction fees settlement, members of the collection letter class can receive $20 per letter, for a maximum payment of $60. Members of the eviction fee class will each receive around $190. Residual settlement funds will be distributed to the eviction fee class on a proportional basis. 

In addition to cash benefits, class members can receive debt-relief benefits. The defendants agreed to waive all outstanding debts owed by class members to their North Carolina properties. These benefits will be applied automatically without class members taking any action. 

The deadline for exclusion and objection is April 14, 2023. 

The final approval hearing for the North Carolina eviction fees settlement is scheduled for June 14, 2023.

To receive cash benefits, members of the collection letter class must submit a valid claim form by April 14, 2023. Members of the eviction fee class do not need to file a claim unless they also wish to receive collection letter class benefits.

Who’s Eligible

Collection letter class: residents of North Carolina properties owned or managed by Palms Associates LLC or Durham Mews LLC (formerly known as Durham Section I Associates) who received a collection letter that threatened to charge eviction fees between Oct. 7, 2016, and June 25, 2018.

Eviction fee class: residents of North Carolina properties owned or managed by Palms Associates LLC or Durham Mews LLC (formerly known as Durham Section I Associates) who were charged and paid eviction fees between Oct. 7, 2016, and June 25, 2018.

Residents may be members of both the collection letter class and the eviction fee class.

Potential Award

$60 for collection letters and/or $190 for eviction fees

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

04/14/2023

Case Name

Johnson, et al. v. Palms Associates LLC, et al., Case No. 1 :20-cv-1049, in the U.S. District Court for the Middle District of North Carolina

Final Hearing

06/14/2023

Settlement Website

NCPalmsTenantsClass.com

Claims Administrator

Johnson v. Palms Associates LLC et al.
c/o Settlement Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Info@NCPalmsTenantsClass.com
833-242-0509

Class Counsel

Scott C. Harris
Patrick M. Wallace
MILBERG COLEMAN BRYSON PHILLIPS GROSSMAN PLLC

Edward H. Maginnis
Karl S. Gwaltney
MAGINNIS HOWARD

Defense Counsel

Richard T. Boyette
Marshall Wall
Steven A. Bader
CRANFILL SUMNER LLP