Centerspace Seeks Dismissal in Junk Fee Class Action
America ı By Rochdi Rais
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In response to the Centerspace junk fee lawsuit, multifamily housing provider Centerspace LP has formally requested a Colorado federal court to dismiss proposed class action claims filed by a Denver tenant. The company argues that significant differences among tenants’ leases and living circumstances render the case unsuitable for class certification.
The lawsuit, originally filed in February by tenant Alexandria Zavala, alleges that Centerspace mismanaged a 14-story residential property—Civic Lofts—following its acquisition in 2022. The complaint further claims that the landlord imposed undisclosed “junk fees” on residents, including charges for trash removal and boiler maintenance, while neglecting essential maintenance and safety standards.
On Monday, Centerspace filed a motion to dismiss all claims or strike the class action designation. The company emphasized that variations in tenant lease agreements, occupancy timelines, unit sizes, and utility usage necessitate individualized analysis, making a class action approach unfeasible.
“Because the class members have individual leases for apartments at the property, and since each tenant has resided at Civic Lofts during varying times over at least a three-year time period, the damages sought by each member of the class, including Ms. Zavala, will vary from person to person,” the company stated in its filing.
Counsel for the proposed class, Ross Ziev, criticized Centerspace’s arguments as inconsistent. “They’re talking out of both sides of their mouth,” said Ziev. “They argue the case doesn’t qualify as a class action while previously stating in federal court that this class action is valued at over $5 million—grounds used to remove the case from state court.”
Ziev confirmed the plaintiff intends to file a motion to remand the case back to state court.
Centerspace further contends that the proposed class fails to meet key legal standards for certification. The company noted that some tenants accepted temporary hotel accommodations during an elevator outage, while others remained in their units. These differing responses, along with varying fee structures and experiences, undermine the commonality required for class certification.
Additionally, Centerspace claims that Zavala failed to define an ascertainable class, a critical element in class action suits. The complaint, the company argues, lacks specifics regarding the class size and timeframes, making it impossible to conduct a proper numerosity analysis.
As the Centerspace junk fee lawsuit progresses, both sides are preparing for the next phase of legal proceedings. Centerspace has reiterated its commitment to addressing tenant concerns while maintaining that this lawsuit lacks the uniformity required for class action treatment.
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