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Law360 (February 19, 2021, 9:54 PM EST) -- A proposed class of tenants has sued a Chicago luxury apartment building and its management company to collect a partial refund on rent payments they say were too high since the pandemic has limited their access to their building's common areas.
Plaintiff Michelle Weisberg's proposed class action alleged Tuesday that STRS Ohio Real Estate Investments LLC, which owns The Streeter luxury apartment building in Chicago, and Village Green Management Company LLC violated the city's Residential Landlord Tenant Ordinance by collecting full rent payments from their tenants despite closing common areas in March in light of the COVID-19 pandemic.
The Streeter's common areas count as part of its tenants' "dwelling unit" as defined by the RLTO, and the ordinance entitles tenants in each of Village Green's eight Chicago properties to a refund of a portion of their rent because of their closure, Weisberg alleged. But "at no point has Village Green or any of its agents offered any rent discount, abatement, concession, or refund for the closure of common areas in any of its Chicago buildings, including at The Streeter," she said.
The RLTO defines dwelling units as a structure or part of a structure that's used as a home, residence or sleeping place by people who maintain a household "together with the common areas, land and appurtenant buildings thereto," according to Weisberg's suit.
Landlords are required under the ordinance to maintain their premises, which includes the dwelling unit and the structure it's part of, as well as the facilities and other areas "held out for the use of the tenants," her suit said.
The RLTO also provides remedies to tenants whose landlords fail to maintain their premises, according to Weisberg's suit. For instance, under the ordinance's fire or casualty damage provision, tenants may vacate unusable parts of dwelling units and have their rent liabilities proportionally reduced, she claimed.
Village Green manages 18 properties in Illinois, according to Weisberg's suit. Eight of the company's properties are located in Chicago, and they all offer common area amenities including 24-hour fitness centers, hot tubs, business centers, Starbucks coffee and tea bars, and wrap-around sun decks, her suit said.
Every Village Green resident pays a premium for access to those amenities, Weisberg said. Village Green closed most of the common areas in its Chicago properties in March as part of its initial response to the COVID-19 pandemic, she claimed.
While some of The Streeter's amenities have reopened to limited capacities since March, others remained closed, Weisberg said. But neither scenario provides residents the common-area access "as paid for in their lease agreements," she claimed.
"Per the provisions of the RLTO, each Village Green tenant impacted by the closure of common area amenities in each Village Green building located in Chicago, including The Streeter, are entitled to a refund of the portion of the rent for these closures due to the casualty," she said.
Weisberg lobbed fraudulent concealment and unjust enrichment claims against The Streeter and Village Green over the allegedly unlawful rent collection. She's looking to represent a class of all individuals who entered a lease with the companies and have been charged for use and access to their common areas since March, and is asking a court for an order that blocks the companies from collecting rent for common areas that are completely closed or open with capacity limits.
Weisberg is also asking a court to award her and the proposed class restitution for all rent money found to be improperly paid as well as actual and statutory damages, costs, and other relief deemed appropriate.
Representatives for both sides didn't immediately respond Friday to a request for comment.
Weisberg is represented by Richard Gordon and Kevin Murphy of Gordon Law Offices Ltd and Katrina Carroll and Kyle Shamberg of Carlson Lynch LLP.
The case is Michelle Weisberg v. STRS Ohio Real Estate Investments LLC et al., case number 2021-L-001740, in the Circuit Court of Cook County.
--Editing by Emily Kokoll.
For a reprint of this article, please contact reprints@law360.com.
