Former tenants are suing Arkansas-based Lindsey Management Co. Inc., claiming that the property management company engaged in conspiracy and fraud and risked the tenants’ health. Four former tenants filed the class action lawsuit last month in Saline County Circuit Court.
In their class action lawsuit, the plaintiffs accuse Lindsey of violating the Arkansas Deceptive and Unconscionable Trade Practices Act (ADTPA), fraud, breach of the duty of good faith and fair dealing, civil conspiracy and breach of contract. They are seeking an unspecified amount of damages.
In their 24-page complaint, the plaintiffs accuse the property management company of devising a scheme in which titles to individual pieces of property are owned by different legal entities. The tenants claim in their class action lawsuit that Lindsey Management used this system in order to “circumvent liability.” The plaintiffs allege Lindsey Management has essentially created a series of alter egos or sham entities to help them avoid liability.
According to the class action lawsuit, Lindsey representatives would refuse to show an apartment to prospective tenants until they sign a lease and arrange for the utilities to be turned on. Then the resident would be shown a model apartment that Lindsey claimed was similar to the one the tenant would lease. In reality, most of the apartments were run down and in poor condition.
Many tenants have complained about rodents, roaches, spiders and mold present in the apartments. The plaintiffs claim that tenants are often told that pest control is their problem. A number of tenants allege that they were evicted from their apartments after making complaints about the habitability or cleanliness of their apartments.
The plaintiffs allege that the property managers would keep their security deposits even after tenants paid to have the apartment professionally cleaned before moving out. In their class action lawsuit, they accuse Lindsey of pocketing their security deposits without using the money to cover maintenance, repairs and cleanup.
According to the Lindsey Management class action lawsuit, the company frequently retains its tenants’ entire security deposit without performing necessary repairs to the apartment after the tenant moves out. In some cases, the company will charge tenants fees on top of the security deposit without making any repairs. Similarly, the company will deduct charges from the security deposit even when a tenant has thoroughly cleaned the apartment and left it free of damage other than normal wear and tear.
Lindsey Property Management owns and operates more than 2,500 properties throughout the United States, including Alabama, Arkansas, Mississippi, Missouri, Nebraska and Oklahoma. According to the class action lawsuit, there have been more than 83 complaints regarding Lindsey made to the Better Business Bureau in Little Rock from 2010-12.
The Lindsey Management Class Action Lawsuit is Foster, et al. v. Lindsey Management Co. Inc., et al, Case No. 63-CV-12-898, in the Circuit Court of Saline County, Arkansas, Third Division.