fbpx

Pegasus Residential Eviction Fees Charged to Tenants Late on Rent Class Action

When tenants are late with the rent, are landlords allowed to charge them eviction fees when no eviction proceedings have ever taken place? The complaint for this class action alleges that Pegasus Residential, LLC, Inwood Holdings, LLC, and MP Bridges at Southpoint, LLC charge tenants more than the law allows and more than they should owe. 

Two classes have been defined for this action. 

  • The Initial Collection Letter Class is all tenants in the defendants’ apartments in North Carolina who (a) at any point between December 18, 2014 and June 25, 2018 (b) lived in one of the apartments owned or managed by the defendants in North Carolina, (c) were sent the Initial Collection Letter that (d) threatened to charge Eviction Fees in order to dismiss the eviction action.
  • The Fee Class is all tenants of defendants’ apartments in North Carolina who (a) at any point between December 18, 2014 and June 25, 2018 (b) lived in one of the apartments owned or managed by the defendants in North Carolina, (c) were charged the Eviction Fees, and (d) actually paid the Eviction Fees to the defendants.

The complaint claims that the defendants in this case (which it claims are related and operate under the name Pegasus) have violated the North Carolina Residential Rental Agreements Act, which limits the amount that can be charged to a tenant for eviction-related fees, among other laws. 

The law says that, in the event of a default, landlords can collect from their tenant “any and all expenses, damages, and costs (including reasonable attorney’s fees and court costs) out of or in any way relating to said default.” The apartments’ lease agreements say that if the landlords “file a summary ejectment action” against the tenant, they can charge the tenant “for the highest ONE of whichever of the following fees apply”—a Complaint Filing Fee, a Court Appearance Fee, and a Second Trial Fee. These fees, the complaint says, are the ones described in the law, but they are separate from the “reasonably attorney’s fees and court costs[.]”

However, the complaint alleges that when tenants have not paid rent by the 14thof the month, Pegasus charges them a series of fees called Eviction Fees—a Filing Fee, a Sheriff’s Service Fee, and Attorneys’ Fees. These fees, the complaint says, are separate from the fees authorized by law. The complaint says that Eviction Fees are set forth by the law for the filing of a complaint in summary ejectment and for service of process by a sheriff. 

The complaint alleges that Pegasus has an agreement with an attorney to pay a flat fee per eviction. In addition, the complaint alleges that the Eviction Charges are imposed whether or not Pegasus has actually filed a complaint of summary ejectment and whether or not any such complaint filed is dismissed. The complaint claims that these fees are charged to the tenant automatically, whether or not the expenses are incurred. 

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Pegasus Residential Eviction Fees Charged to Tenants Late on Rent Complaint

December 18, 2018

When tenants are late with the rent, are landlords allowed to charge them eviction fees when no eviction proceedings have ever taken place? The complaint for this class action alleges that Pegasus Residential, LLC, Inwood Holdings, LLC, and MP Bridges at Southpoint, LLC charge tenants more than the law allows and more than they should owe. 

pegasus_residential_debt_collection_compl.pdf

Case Event History

Pegasus Residential Eviction Fees Charged to Tenants Late on Rent Complaint

December 18, 2018

When tenants are late with the rent, are landlords allowed to charge them eviction fees when no eviction proceedings have ever taken place? The complaint for this class action alleges that Pegasus Residential, LLC, Inwood Holdings, LLC, and MP Bridges at Southpoint, LLC charge tenants more than the law allows and more than they should owe. 

pegasus_residential_debt_collection_compl.pdf
Tags: Breach of Contract, Excessive Late Fees, Landlord/Tenant Dispute