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The Property Management Connection v. Uejio

CASE SUMMARY

Did we achieve our litigation objective? Yes. People seeking to collect unpaid residential rent are no longer at risk of having their First Amendment rights violated.

Court Outcome: The case was voluntarily dismissed after the Supreme Court’s decision in Alabama Realtors v. Department of Heath and Human Services.

Larger Impact: Despite the CDC’s best efforts, NCLA thwarted the CDC’s attempt to mislead tenants.

Summary: CFPB was requiring that anyone who sought to collect unpaid residential rent, including property management companies, real estate attorneys, or housing providers, lie to tenants who had been sued for unpaid rent and were subject to eviction.

NCLA filed a lawsuit and motion for temporary restraining order against CFPB in the U.S. District Court for the Middle District of Tennessee for doubling down on the unlawful Halt Order issued by the Centers for Disease Control and Prevention (CDC) in September 2020. NCLA represented The Property Management Connection, LLC, attorney Gordon Schoeffler, and the National Association of Residential Property Managers. Each Plaintiff suffered significant economic damages after CDC issued its Order, which forced property owners to provide habitable housing for tenants while continuing to pay maintenance, utilities, and other expenses, but prevented them from requiring tenants to pay their rent.

Undeterred by numerous challenges and court rejections across the country against the Halt Order, CFPB implemented an Interim Final Rule, Debt Collection Practices in Connection With the Global COVID-19 Pandemic, without public comment. The CFPB rule was an unlawful agency action in violation of the Administrative Procedure Act (APA) because it required disclosures not required under the Fair Debt Collection Practices Act. The FDCPA generally prohibits debt collectors from using “any false, deceptive, or misleading representations or means in connection with the collection of any debt.” The CFPB rule also violated the First Amendment of the Constitution by requiring false speech. The rule required Plaintiffs to falsely inform tenants, in writing, that they were entitled to protection under the Halt Order, when, in fact, the Order had been deemed unenforceable by multiple judges.

RELEVANT MATERIALS

NCLA FILINGS

Memorandum Opinion of the U.S. District Court for the Middle District of Tennessee, Nashville Division

November 10, 2021 | Read More

Plaintiffs’ Response in Opposition to Defendants Motion to Dismiss

October 8, 2021 | Read More

Memorandum Opinion Denying Plaintiffs’ Motion

May 14, 2021 | Read More

Plaintiffs Reply Brief in Support of Motion for Temporary Restraining Order

May 11, 2021 | Read More

Response in Opposition to Plaintiffs Motion for Temporary Injunction

May 10, 2021 | Read More

SEE 8 FILINGS
PRESS RELEASES

In Mixed Ruling for NCLA Clients, District Judge Says CFPB Rule Does Not Apply in Sixth Circuit

May 17, 2021 | Read More

NCLA Cries Foul on CFPB Final Rule that Doubles Down on Unlawful Eviction Moratorium Policy

May 3, 2021 | Read More

IN THE MEDIA

Judge wont block eviction ban notice rule

Reuters

February 7, 2023

CFPB Eviction Disclosure Rule Survives Restraining Order Bid

Law360

February 7, 2023

Eviction Disclosure Rule OK With 1st Amendment, CFPB Says

Law360

February 7, 2023

Coronavirus Litigation: The Week In Review

Law360

February 7, 2023

Federal Judge Strikes Down CDC’s National Eviction Moratorium, Appeal Immediately Filed

Orlando Sentinel

February 7, 2023

SEE 7 MEDIA MENTIONS

CASE HIGHLIGHTS

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