Class action lawsuit filed against Boston landlords legal fees

A class action lawsuit has been filed in federal court in Boston against landlords AvalonBay and Greystar, alleging they illegally charge tenants for their legal fees, even when eviction cases don’t go before a judge. Lawyers and housing advocates argue this practice violates Massachusetts state law, which stipulates legal fees are only payable by the losing party with court approval. Plaintiffs, like Almeida and Cordeiro, recount being charged fees despite cases being dismissed or settled outside of court, sometimes after being encouraged to negotiate directly with landlords’ lawyers by housing court judges.

The lawsuit claims landlords exploit tenants’ fear of eviction, pressuring them to pay fees to avoid legal battles. Courtney Libon, a housing attorney, emphasizes these fees contribute to housing instability, particularly for rent-burdened tenants. While AvalonBay and Greystar deny the claims and have filed counterclaims, a similar lawsuit in North Carolina resulted in Greystar paying over $4.5 million in settlement.

State Senator Jamie Eldridge has proposed legislation to clarify that legal fees can only be charged after a court judgment, and a retired housing court judge suggests the charges are merely accounting practices. However, plaintiffs hope the lawsuit will establish the practice as illegal and prevent future tenants from facing similar charges.

(Source：The Boston Globe)