{"id":453,"date":"2026-01-09T12:00:00","date_gmt":"2026-01-09T12:00:00","guid":{"rendered":"https:\/\/california.shuster.info\/?p=453"},"modified":"2026-01-09T12:00:00","modified_gmt":"2026-01-09T12:00:00","slug":"van-cott-equity-residential-class-settlement-late-fee-rule-68","status":"publish","type":"post","link":"https:\/\/california.shuster.info\/?p=453","title":{"rendered":"Van Cott v. Equity Residential \u2014 N.D. Cal. approves class settlement of unlawful Standard Late Fee claims under Rule 68"},"content":{"rendered":"
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Case<\/dt>\n
Courtney Van Cott v. Equity Residential, et al.<\/dd>\n
Court<\/dt>\n
U.S. District Court \u2014 Northern District of California<\/dd>\n
Date Decided<\/dt>\n
2026-01-09<\/dd>\n
Docket No.<\/dt>\n
4:25-cv-02358<\/dd>\n
Status<\/dt>\n
Unreported \/ Non-Citable<\/dd>\n
Topics<\/dt>\n
Class action settlement; Federal Rule of Civil Procedure 68 offer of judgment; Equity Residential Standard Late Fee; Munguia-Brown v. Equity Residential<\/em>; service award; attorney’s fees; restitution; California tenants<\/dd>\n<\/dl>\n<\/div>\n

Background<\/h2>\n

This case is a follow-on to Munguia-Brown, et al. v. Equity Residential, et al.<\/em>, No. 4:16-cv-01225-JSW-TSH (N.D. Cal.), in which Judge Jeffrey S. White previously found Equity Residential\u2019s Standard Late Fee \u2014 5% of monthly rent, with a minimum of $50 \u2014 to be unlawful and void as applied to its California tenants between June 2008 and April 2024. Plaintiff Courtney Van Cott then filed this putative class action on behalf of California tenants similarly affected.<\/p>\n

The parties reached a settlement after Equity made a classwide Offer of Judgment under Federal Rule of Civil Procedure 68. Under the settlement, class members receive restitution of all Standard Late Fees paid from October 29, 2022 through April 30, 2024 in excess of $31.98 per late fee \u2014 the actual average cost a Munguia-Brown<\/em> plaintiff-expert calculated as Equity\u2019s actual collections cost. Class members charged but who did not pay the Standard Late Fee receive credits on the same formula. Equity separately agreed to pay reasonable attorneys\u2019 fees and costs and a $5,000 service award to the named plaintiff. After preliminary approval in August 2025, the parties later settled the attorneys\u2019 fees and costs at $430,000. The court held a final fairness hearing on January 9, 2026.<\/p>\n

The Court’s Holding<\/h2>\n

Judge White granted Van Cott\u2019s motions in full: final approval of the class settlement, $430,000 in attorneys\u2019 fees and costs, and the $5,000 service award.<\/p>\n

Applying the standard for final approval of a class action settlement under Federal Rule of Civil Procedure 23(e), the court found the settlement fair, reasonable, and adequate. The class is well-defined (California Equity Residential tenants first charged one or more late fees during the class period), the settlement amount tracks the unlawfulness finding from Munguia-Brown<\/em> (restitution of the unlawful portion of each late fee, calibrated by reference to the previously litigated $31.98 actual-cost figure), and the Settlement Administration Protocol provides for direct distribution and account credits without requiring class members to file claims.<\/p>\n

The court found the settlement consideration strong, particularly given the prior Munguia-Brown<\/em> liability ruling that supported the underlying merits. Notice procedures complied with Rule 23(e)(1) and due process. The fee award of $430,000, separately negotiated and paid by Equity outside of class recovery, was reasonable in light of class counsel\u2019s work in obtaining the Rule 68 offer and administering the settlement. The $5,000 service award fell well within the range routinely approved in California class settlements for representative plaintiffs whose participation supported the class claim.<\/p>\n

Key Takeaways<\/h2>\n