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Individuals who lived at Southern Hills or Northridge Place Community in Minnesota and whom Sun Communities charged excessive late fees, pet fees or delinquency fees between Dec. 21, 2017, and Feb. 24, 2025, may qualify to receive up to $99.06 from a class action settlement.
Sun Communities Inc. agreed to pay $170,000 to resolve a class action lawsuit alleging it imposed fees that violated Minnesota law. The plaintiffs claimed the company charged excessive late fees, pet fees and delinquency fees to residents of Southern Hills and Northridge Place Community.
Who are the class members?
The settlement class includes all current and former residents of Southern Hills or Northridge Place Community in Minnesota whom Sun Communities charged excessive late fees, pet fees or delinquency fees between Dec. 21, 2017, and Feb. 24, 2025.
The class is divided into two subclasses:
- Pet fee subclass: Residents whom Sun Communities charged pet fees in excess of $4 per month
- Late fee subclass: Residents whom Sun Communities charged late fees in excess of 8% of overdue rent payments
A person can belong to one or both subclasses, depending on the types of fees Sun Communities charged. The settlement administrator will use existing records to determine eligibility for each subclass.
How much can class members receive?
Each eligible class member will receive a payment of $49.53 for each subclass they belong to.
- If Sun Communities charged a class member one type of excessive fee, they will receive $49.53.
- If Sun Communities charged a class member both excessive late fees and excessive pet fees, they can receive $49.53 for each, totaling $99.06.
No action needed to receive payment
Class members do not need to file a claim or submit any paperwork to receive their payment. If the court approves the final settlement, the settlement administrator will mail a check to each eligible class member using the last known address on file.
Class members who believes they are eligible but do not receive a payment should contact the settlement administrator for assistance.
Settlement administrator’s mailing address: Pegram v. Sun Communities Inc., Settlement Administrator, P.O. Box 301130, Los Angeles, CA 90030-1130
$170,000 settlement fund breakdown
The $170,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys’ fees and expenses: To be determined
- Service awards to lead plaintiffs: To be determined
- Payments to class members: The remainder of the fund
Important dates
- Exclusion deadline: Dec. 1, 2025
- Final approval hearing: Feb. 9, 2026
When is the Sun Communities settlement payout date?
The settlement administrator will issue payments approximately 90 days after it resolves any appeals and the court grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged Sun Communities Inc. charged residents fees that exceeded limits set by Minnesota law. Specifically, the plaintiffs claimed the company:
- Charged late fees greater than 8% of overdue rent, violating Minn. Stat. § 504B.177(a)
- Charged pet fees greater than $4 per pet per month, violating Minn. Stat. § 327C.03, subd. 3
- Charged delinquency fees greater than what is allowed by Minn. Stat. § 327C.11, subd. 1
The plaintiffs asserted claims for violations of Minnesota’s Uniform Deceptive Trade Practices Act and Minnesota’s Consumer Fraud Statute and unjust enrichment.
Sun Communities denied all allegations of wrongdoing but agreed to settle to avoid the risks and costs of further litigation.
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