The Maryland Supreme Court ruled in favor of tenants seeking a class action over illegal late fees against a Baltimore-area apartment management company owned by Jared Kushner.
Westminster Management LLC broke a state law that caps penalties for late rent at 5% of the monthly amount, the court ruled in an opinion issued Monday. Westminster also charged tenants “agent fees,” “summons fees” and “writ fees” connected to the eviction court, according to the lawsuit. When tenants are more than five days late on rent, Westminster “typically charges the tenant the 5% late fee, a $10 agent fee, and a summons fee of $20 to $30,” according to court documents.
The tenants first filed a complaint in 2017 but were denied certification for a class action in April 2019 in Baltimore City Circuit Court. In May 2019, the court declined to reconsider its ruling, according to court documents. Then a circuit court ruling in favor of a Westminster motion to dismiss the case was overturned by the Appellate Court of Maryland in February 2023.
Attorneys for the tenants said they are optimistic about receiving class certification on a third attempt, which could precede a bench or jury trial or settlement. In an opinion, the Supreme Court wrote that the Circuit Court for Baltimore City erred in declining to review the tenants’ second attempt for class certification.
“We won on all counts in Appellate Court, and the Supreme Court gave an even broader victory that emphasizes these fees are illegal,” attorney Matt Hill said. “We have very clear guidance from the Supreme Court, which is binding precedent, so when we go back to Circuit Court we are very optimistic.”
Attorneys representing Westminster Management did not respond to a request for comment Monday. The tenants who filed suit were five former residents at four residential properties managed by Westminster in Baltimore City and Baltimore County.
“This decision will allow Maryland residents a fair chance to catch up if they fall behind. Landlords will have to stop piling more and more fees on renters, driving them deeper into the hole. This will mean more housing stability and support for families,” tenant Tenae Smith said in a news release.
Westminster Management, from which Kushner stepped down as CEO to join his father-in-law Donald Trump’s administration but where he remains an owner, settled in 2022 with the Maryland Attorney General’s Office in separate litigation that alleged Westminster had taken advantage of financially vulnerable consumers and violated Maryland’s consumer protection laws.