SAN DIEGO (KGTV) — A class-action lawsuit over security deposits has reached a settlement worth nearly $10 million.
The decision will affect roughly 60,000 tenants in California who lived in apartments operated by MG Properties, according to the plaintiffs' attorney Jimmie Parker.
That includes Rachel Whillier, who moved into the Preserve at Melrose apartments in Vista in 2017. She moved out in 2021.
"I already heard there was a tendency for residents not to get their security deposits back, so I was extra intentional about all of it just to make sure I checked all the boxes and knew what to expect," Whillier told ABC 10News over Zoom.
When she moved out, she said she knew there would be a cleaning fee, but she was not given a heads-up on other details.
"They blindsided me with no deposit and, instead, were actually going to be charging you on top of it," Whillier said. "During the move-out inspection, I was told everything looked pretty good. That's the time where they should say you'll need to fix this, or you'll incur a charge."
Whillier was one of two renters named in the lawsuit who lived at Preserve at Melrose. A third plaintiff lived at the Waterleaf Apartment Homes, also in Vista.
Court documents alleged the company did not provide "invoices or receipts for the work" done on renters' apartments when they moved out. It also said the company charged "excessive late fees."
Parker said the settlement was a "very hard-fought battle."
"We ended up settling the case with the help of a retired federal judge," he added.
Parker emphasized tenants should become knowledgeable about their rights. He said renters should be given receipts within 21 days after they move out on work done to their vacated unit.
When it comes to late fees, California law does not define a specific amount that is acceptable, but there are guidelines.
"It does require the landlord to require some audit or study to determine what would be a reasonable amount," Parker said.
ABC 10News reached out to the attorneys representing MG Properties, also known as Gleiberman Properties.
Shannon Sweeney with Fennemore Law released this statement:
"Fennemore has been privileged to represent MG Properties in this litigation. MG Properties strenuously disputes the allegations in this case, denies any wrongdoing, and maintains that its policies and practices have at all times complied with the law. We believe that it had many strong and viable defenses. Assuming it is approved at the final hearing in February, the settlement reflects a business decision to resolve a lengthy, expensive, and time-consuming lawsuit so that MG Properties can focus on being an industry leader in providing excellent housing and management services to its residents."
Whillier said renters need to speak up if they have questions.
"If something doesn't seem right or doesn't seem fair, look into it," she said.
The deadline for tenants to submit a claim is Jan. 10. The link to file that is here.
