Court Upholds a Settlement Affecting 20,000 City Renters
By MIREYA NAVARRO
A federal appeals court has upheld a settlement affecting more than 20,000 rent-regulated tenants in New York City, clearing the way for them to seek individual compensation from their landlord for rent overcharges and other complaints.
In its decision on Monday, the United States Court of Appeals for the Second Circuit ruled that the 2011 settlement of the tenants’ class-action lawsuit against the Pinnacle Group, a large New York landlord, was “fair, reasonable and adequate.” The settlement had been in question after a group of tenants appealed to overturn it, saying it excluded certain types of claims worth millions of dollars more than what Pinnacle had agreed to be liable for.
The breakaway group of tenants had sought to renegotiate the agreement or go to trial if new terms could not be reached. But the appeals court found the exclusions reasonable and noted that all class settlements entailed compromises.
Under the Pinnacle settlement, the court concluded, all class members benefited from new procedures and “best practices” that the company agreed to follow in carrying out rent increases and evictions. The company also agreed to have a court-appointed administrator hear the tenants’ individual complaints of illegal rents and harassment and determine compensation.
http://www.nytimes.com/2013/10/02/nyregion/court-upholds-a-settlement-affecting-20000-city-renters.html?partner=socialflow&smid=tw-nytmetro
