Facts

Geoffrey H. Palmer is a resident of Los Angeles who operated a dba named GH Palmer Associates. GHP Management Corporation is a California corporation with its principal place of business in Los Angeles. Palmer and GHP lease and manage properties throughout southern California, including the Medici Apartments.

Heath Seltzer is a resident of Los Angeles, and he was the tenant on a residential lease in the Medici Apartments. Under the lease agreement, rent was due on the first of the month, and if not paid by the third of the month, a $75 late fee was assessed. Seltzer was assessed and paid this late fee. On December 10, 2018, Seltzer filed suit against Palmer and GHP in Los Angeles County Superior Court on behalf of himself and on behalf of all others similarly situated.

PLAINTIFF'S CONTENTIONS: The plaintiff contended that the defendants had a uniform policy and practice of charging tenants a flat-rate late fee of $75; that he was assessed such a penalty and paid it various times between 2011 and 2018; that this policy was reflected in all rental agreements with the defendants; that the fee was assessed even if rent is received even a day after the grace period; that the fees were assessed despite the defendants suffering no damage as a result of the untimely rent; that the fees were excessive and arbitrary; and that the defendants' conduct violated the Unfair Competition Law.

DEFENDANTS' CONTENTIONS: Defendants denied any wrongdoing or liability and disputed all the claims and contentions alleged by the plaintiff.

Settlement Discussions

On January 19, 2021, the parties attended a full-day mediation session with the Honorable Dickran Tevrizian (Ret.) of JAMS. The parties participated in a second full-day session with the Honorable Carl J. West (Ret.) of JAMS on September 8, 2021, during which they reached the essential terms of their eventual settlement agreement.

Result

The parties reached an agreement wherein the defendants admitted no wrongdoing or liability but agreed to pay $1.75 million to settle class members' claims.