A class action settlement against JH One Properties, a Lynn-based property management company, and KCMP Capital would authorize a settlement fund of $575,000 to pay renters back their security deposits if approved in Essex Superior Court
The settlement would go toward class members who rented apartments owned by either JH One Properties or KCMP Capital as trustees of the 501 Washington St. Lynn nominee trust. Those permitted to join the class must have paid a security deposit between Feb. 20, 2015 and May 31, 2023.
The lawsuit is due to both property managers allegedly not following the Massachusetts Security Deposit Law and instead placing unrelated funds into an account solely meant for tenants’ security deposits.
The defendants are denying this accusation and claim their actions have not violated the law.
The settlement notice argues that taking the case to trial would result in a long delay for applicable class members to receive their settlements, which could “prevent them from recovering.”
“The parties wish to resolve this matter on a class-wide basis to avoid the delay and expense of further litigation and have reached a proposed resolution of their dispute,” the settlement notice reads.
The settlement notice also explains that a fund of $575,000 would be created, with 33% taken to pay attorneys’ fees. $5,000 would go toward the plaintiffs who spoke out and initiated the suit. A dispute fund of $4,000 would also be kept to address any other potential issues.
The notice further states that the additional funds will go toward the eligible class members on a pro-rata basis, meaning they will be proportionally distributed based on the amount of the members’ security deposits.
Class members who signed releases and had their security deposits returned would earn 25% of their deposits’ value, and members who did not sign releases or have their deposits returned would earn 133% of their deposits’ value.
The settlement administrator, JH One Settlement Attorney, does not have the current addresses of some of the former tenants, so the notices have been mailed to some of their old addresses.
“If you have moved, you can submit a change of address request to the settlement administrator,” the settlement notice reads.
The final settlement approval hearing for this case will be held on June 20 at 2 p.m. in Essex Superior Court in Lawrence, Courtroom 2.
As of press time, JH One Settlement Attorney, JH One Properties, and KCMP Capital could not be reached for comment.
