Senior Judge Frank M. Hull, U.S. Court of Appeals for the Eleventh Circuit. (Photo: John Disney/ALM) Appeals Court Says Insurer Must Defend Class Action Over Landlord's Withheld Security Deposits
The Eleventh Circuit opinion said the insurer for apartment management company ECI must defend it in a lawsuit alleging the landlord improperly keeps tenants' security deposits.
July 30, 2020 at 06:28 PM
5 minute read
A federal appeals court said an insurer must defend a putative class action claiming an apartment management company systematically withholds some or all of tenants' security deposits when they move out and fails to timely provide a list of claimed damages as required by Georgia law so that tenants cannot contest them.
The underlying complaint was filed in 2017 against ECI Management, which oversees multiple apartment complexes in the metro area and beyond, in DeKalb County State Court. It claimed that ECI has a "company-wide policy of withholding all or some of the security deposits of its departing tenants in violation of Georgia law" governing security deposits.
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