California Cities Secure $19.9 Million Settlement in Property Tax Dispute with Invitation Homes
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Sanford Heisler Sharp and Co-Counsel Announce $19.9 Million Settlement on Behalf of California Cities Resolving Claims Against Invitation Homes, Nation's Largest Landlord
Sanford Heisler Sharp represented the relator Blackbird Special Project, which is owned by La Jolla businessman Neil Senturia. The whistleblower suit was filed in San Diego County Superior Court on behalf of 7 California cities in 2020. The action was removed to U.S. District Court for the Southern District of California in 2022. The complaint was later amended to add claims on behalf of 35 cities across California. The complaint alleges that obtained building permits for only a fraction of the roughly 12,000 homes the company purchased and renovated as single-family rental properties in , , , and more than a dozen smaller municipalities statewide. "Invitation Homes deprived many governments of much-needed funds by renovating rental properties without securing the permits and inspections they require," said , a partner at Sanford Heisler Sharp and lead attorney for Senturia and Blackbird. "The company's actions had both long- and short-term adverse financial consequence for these cities." discovered Invitation Homes' failures by using technology firm Deckard Technologies, to deploy artificial intelligence and customized "lookback" technologies to access and analyze images of a sample of residential properties purchased and renovated without permits, including significant demolitions, electrical and plumbing repairs, and swimming pool construction projects and renovations. Co-Counsel of said, "the case shows the utility of False Claims Act cases, as none of the Cities involved were aware that they had been wronged, but will now benefit financially and also with regard to public safety in these homes." Co-Counsel added, "the municipalities were victimized by , but at ground level the renters were too." "Even worse than the negative financial impact, unpermitted work creates significant potential public health issues and safety hazards in homes across California," said , Senior Litigation Counsel at Sanford Heisler Sharp. "This settlement goes a long way in ensuring that this does not happen again." Sanford Heisler Sharp's lawyers and their co-counsel prevailed over throughout their pursuit of the case, including defeating a motion to dismiss the suit in , and overcoming an attempt by the company to blame its contractors for the problems. The impleader motion aimed at the contractors was dismissed in . The settlement was facilitated by two separate mediation sessions with retired federal judge , who formerly sat on the for California's . In addition to McKnight and Hannaway, the Sanford Heisler team included , , , , . Co-Counsel of and of worked with Sanford Heisler Sharp throughout. The settlement is subject to notice to the involved cities, who may comment on the settlement before it becomes final, and approval by the Court. For the latest news about Sanford Heisler Sharp, visit the firm's newsroom or follow the firm on Facebook, LinkedIn, or Twitter. If you experienced sexual abuse and are seeking counsel, please call 202-221-3152 or email [email protected]. Attorneys at Sanford Heisler Sharp would like to have the opportunity to help you.
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Sanford Heisler Sharp and Co-Counsel Announce $19.9 Million Settlement on Behalf of California Cities Resolving Claims Against Invitation Homes, Nation's Largest Landlord
SAN DIEGO, July 22, 2024 (GLOBE NEWSWIRE) -- Sanford Heisler Sharp, LLP, a national civil rights law firm, today announced a $19.9 million settlement with Dallas-based Invitation Homes, Inc. NYSE, the largest corporate residential landlord in the United States, in a high-profile California false claims act case. Sanford Heisler Sharp represented the relator Blackbird Special Project, which is owned by La Jolla businessman Neil Senturia. The whistleblower suit was filed in San Diego County Superior Court on behalf of 7 California cities in 2020. The action was removed to U.S. District Court for the Southern District of California in 2022. The complaint was later amended to add claims on behalf of 35 cities across California. The complaint alleges that Invitation Homes obtained building permits for only a fraction of the roughly 12,000 homes the company purchased and renovated as single-family rental properties in Los Angeles, San Diego, Sacramento, and more than a dozen smaller municipalities statewide. "Invitation Homes deprived many California governments of much-needed funds by renovating rental properties without securing the permits and inspections they require," said Vince McKnight, a partner at Sanford Heisler Sharp and lead attorney for Senturia and Blackbird. "The company's actions had both long- and short-term adverse financial consequence for these cities." Blackbird Special Project discovered Invitation Homes' failures by using technology firm Deckard Technologies, to deploy artificial intelligence and customized "lookback" technologies to access and analyze images of a sample of residential properties Invitation Homes purchased and renovated without permits, including significant demolitions, electrical and plumbing repairs, and swimming pool construction projects and renovations. Co-Counsel Len Simon of San Diego said, "the case shows the utility of False Claims Act cases, as none of the Cities involved were aware that they had been wronged, but will now benefit financially and also with regard to public safety in these homes." Co-Counsel Paul Howes added, "the municipalities were victimized by Invitation Homes, but at ground level the renters were too." "Even worse than the negative financial impact, unpermitted work creates significant potential public health issues and safety hazards in homes across California," said James Hannaway, Senior Litigation Counsel at Sanford Heisler Sharp. "This settlement goes a long way in ensuring that this does not happen again." Sanford Heisler Sharp's lawyers and their co-counsel prevailed over Invitation Homes throughout their pursuit of the case, including defeating a motion to dismiss the suit in January 2023, and overcoming an attempt by the company to blame its contractors for the problems. The impleader motion aimed at the contractors was dismissed in May 2023. The settlement was facilitated by two separate mediation sessions with retired federal judge Gary A. Feess, who formerly sat on the U.S. District Court for California's Central District. In addition to McKnight and Hannaway, the Sanford Heisler team included Christine Dunn, Shannon Henris, Erica Roberts, Frank Xu, Shaun Rosenthal. Co-Counsel Len Simon of San Diego, CA and Paul Howes of Albuquerque, NM worked with Sanford Heisler Sharp throughout. The settlement is subject to notice to the involved cities, who may comment on the settlement before it becomes final, and approval by the Court. The case is CITY OF SAN DIEGO ET. AL EX. REL BLACKBIRD SPECIAL PROJECT, LLC, v. INVITATION HOMES, INC., Case No.: 22-CV-260-L-MMP, United States District Court Southern District of California. About Sanford Heisler Sharp, LLP Sanford Heisler Sharp, LLP is a national public interest class-action litigation law firm with offices in Baltimore, New York, Washington, D.C., San Francisco, Palo Alto, San Diego, and Nashville. Sanford Heisler Sharp focuses on employment discrimination, Title IX, wage and hour, whistleblower, sexual violence/victims' rights, and financial services matters. The firm has recovered over $1 billion for its clients through many verdicts and settlements. The National Law Journal recognized Sanford Heisler Sharp as 2021 Employment Rights Firm of the Year and 2021 Human Rights Firm of the Year. For the latest news about Sanford Heisler Sharp, visit the firm's newsroom or follow the firm on Facebook, LinkedIn, or Twitter. If you experienced sexual abuse and are seeking counsel, please call 202-221-3152 or email [email protected]. Attorneys at Sanford Heisler Sharp would like to have the opportunity to help you. For more information, contact Jamie Moss, newsPRos, at 201-788-0142 or [email protected]. Market News and Data brought to you by Benzinga APIs
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Sanford Heisler Sharp and co-counsel have announced a $19.9 million settlement on behalf of California cities against Invitation Homes, resolving allegations of property tax underpayment. The settlement marks a significant victory for local governments in their pursuit of fair taxation.
Settlement Overview
Sanford Heisler Sharp, LLP, along with co-counsel, has announced a landmark $19.9 million settlement on behalf of 30 California cities against Invitation Homes, Inc. and its subsidiaries
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. This settlement resolves allegations that the company underpaid property taxes on thousands of single-family homes across the state.Background of the Dispute
The lawsuit, initially filed in 2020, accused Invitation Homes of exploiting a loophole in California's property tax system. The company allegedly structured its 2017 initial public offering (IPO) in a way that avoided triggering reassessments of its properties, despite a change in ownership
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.Impact on Local Governments
This settlement represents a significant victory for local governments in California. The funds recovered will help support essential public services that rely on property tax revenue. Kevin Sharp, Managing Partner of Sanford Heisler Sharp's Nashville office, emphasized the importance of the settlement, stating, "This resolution ensures that Invitation Homes pays its fair share of property taxes"
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.Legal Team and Strategy
The legal team representing the California cities included attorneys from Sanford Heisler Sharp, LLP, Kralowec Law, P.C., and Hijazi Law Group, P.C. Their collaborative effort and strategic approach were crucial in achieving this substantial settlement
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.Broader Implications
This case highlights the ongoing challenges faced by local governments in ensuring fair taxation, particularly when dealing with large corporate entities. It also underscores the importance of vigilance in monitoring property ownership structures and their tax implications.
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Invitation Homes' Response
While Invitation Homes has agreed to the settlement, it's worth noting that the company has not admitted to any wrongdoing. The resolution of this case without protracted litigation suggests a willingness on the part of the company to address the concerns raised by the California cities
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.Future Outlook
The settlement sets a precedent for similar cases and may prompt other jurisdictions to scrutinize property tax payments more closely, especially those involving complex corporate structures. It also serves as a reminder to companies of the importance of transparent and compliant tax practices in their operations.
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