Back to the Library
Capping a five-year legal battle, the Second Circuit on this day in 2013 affirmed a district court’s approval of a landmark settlement agreement between a class of 22,000 tenants and Pinnacle Group, one of New York City’s largest residential landlords that owned scores of rent-controlled apartments. Low-income tenants had accused the company of orchestrating a harassment campaign against them to force them to move out so that new tenants, not under rent control, would move in. The settlement included an independent and streamlined claims administration process; a $2.5 million legal assistance fund established by Pinnacle to assist the tenants in asserting their rights; an injunction wherein Pinnacle agreed to honor best practices enforced by a court-appointed claims administrator; and an audit of new rents, among other things. Fewer than 1 percent of the class members opted out or objected to the settlement, but all five named class representatives did object and voiced their objections to the district court. The district court conducted a fairness hearing, carefully considered all of the objections, and in June 2012, issued a 54-page opinion granting final approval to the settlement. The five named class representatives and three objecting class members then appealed to the Second Circuit, which called the district court’s decision “thorough” and “well-reasoned.” The Second Circuit also noted that the named class representatives were the “more militant members of the class” and pointed out that “the district court thoroughly and carefully reviewed the settlement and concluded that it was a fair and sensible way to resolve these claims.” The team representing the tenants included current attorneys Richard Levy, Ross Bricker, Marisa Perry and Joshua Rubin with assistance from Michael Brody, Matthew Hellman, Paul Smith and Elizabeth Edmonson.