Equity Residential California Late Fee $22.7M Settlement, Were You Charged an Unlawful Late Fee Between 2010–2022?

Equity Residential agreed to pay $22,707,238.38 to settle a class action lawsuit after a federal court ruled its late fee policy “null and void” under California law. If you rented from Equity Residential in California and paid a late fee for the first time between September 3, 2010, and October 28, 2022, you may qualify for an automatic partial refund — no claim form required. Former Woodland Park tenants in East Palo Alto may also qualify. The opt-out deadline is April 16, 2026.

Quick Facts

Current Status and What Happens Next

• Preliminarily approved — the court gave conditional approval on February 2, 2026, and CPT Group is identifying all eligible tenants using Equity Residential’s rental and payment records.
• Opt-out deadline: April 16, 2026 — if you want to preserve your right to sue Equity Residential independently for these late fees, you must mail your exclusion request before this date.
• Final fairness hearing: June 26, 2026 — if the court grants final approval, the settlement administrator will distribute refund checks and apply account credits approximately 73 days after the settlement becomes final and any appeals are resolved.

What Is the Equity Residential Late Fee Lawsuit About?

This settlement is the culmination of a decade-long legal battle against one of the largest apartment landlords in the United States. Plaintiffs Munguia-Brown and other California Equity Residential tenants filed the class action lawsuit Munguia-Brown, et al. v. Equity Residential, et al., Case No. 4:16-cv-01225-JSW-TSH, in the U.S. District Court for the Northern District of California in 2016. The lawsuit alleged Equity Residential’s standard late fee — 5% of monthly rent, minimum $50 — violated California Civil Code Section 1671(d), which prohibits landlords from charging late fees that are not a reasonable estimate of the actual costs they incur when rent is paid late.

After an 8-day bench trial in June 2023, U.S. District Judge Jeffrey White issued a landmark ruling on April 8, 2024, finding Equity Residential’s late fee “null and void” under California Civil Code Section 1671(d) and ruling that “by imposing a late fee that is void under Section 1671(d), Equity has engaged in an unlawful business practice” in violation of California’s Unfair Competition Law. The court credited the testimony of plaintiffs’ experts and found Equity’s own expert’s work to be “unscientific” and unreliable. Rather than continue with an expensive appeals process, both parties agreed to settle the damages phase — allowing affected tenants to receive refunds and credits without years of additional court delays.

Who Is Eligible to Receive a Refund?

The settlement covers two groups of California Equity Residential tenants. CPT Group identifies all class members automatically using Equity Residential’s records.

Group 1 — Standard Late Fee Class:

• You may qualify if you were an Equity Residential tenant in California who was charged a 5% of rent (minimum $50) late fee for the first time between September 3, 2010, and October 28, 2022.
• This includes tenants who paid the late fee and those who received a charge but had not yet paid it by April 30, 2024.

Group 2 — Woodland Park Preexisting Lease Class:

• You may qualify if you lived at the Woodland Park property in East Palo Alto, California under a non-Equity Residential lease while Equity Residential owned the property from December 1, 2011, through February 2016, and you received a charge of at least one $50 flat late fee during that time.

Co-tenants: If multiple tenants shared a unit and both qualify, the settlement administrator divides the refund or credit equally among all qualifying class members associated with that lease.

Excluded: Tenants who previously opted out of the class during earlier phases of the litigation do not qualify.

How Much Will You Receive?

Your refund amount depends on how much you paid in late fees and when those fees were charged. The settlement provides a partial refund — not a full refund — because it deducts a small cost offset representing Equity Residential’s legitimate administrative costs of collecting late rent, as calculated by the trial expert.

For tenants who paid their late fees by April 30, 2024: You receive a cash refund check equal to 87% of (total late fees paid minus the cost offset per fee)

Cost offsets per individual late fee:

• Late fees charged before May 1, 2022 → deduct $22.51 per fee
• Late fees charged on or after May 1, 2022 → deduct $31.98 per fee

Example: If you paid two late fees before May 2022 totaling $200, your refund would be approximately: 87% × ($200 − $45.02) = 87% × $154.98 = ~$134.83

For tenants who received a late fee charge but had NOT paid it by April 30, 2024: You receive an account credit reducing your outstanding late fee charge to the cost offset amount ($22.51 or $31.98 depending on when the fee was charged).

Settlement fund breakdown:

Uncashed refund checks will be transferred to the California Unclaimed Property program — not returned to Equity Residential. If you miss cashing your check, you can claim it through the state’s unclaimed property system.

How Will You Receive Your Refund?

Because no claim form is required, here is exactly what happens:

Step 1 — CPT Group uses Equity Residential’s rental and payment records to identify all eligible class members and calculate each tenant’s refund or credit amount.

Step 2 — If you paid your late fees, the administrator mails a refund check to your last known address on file. If your address has changed since you lived at an Equity Residential property, update it immediately at equitymunguia-brownlatefeesettlement.com/Login or contact CPT Group at 1-888-545-0143 or [email protected].

Step 3 — If you did not pay your late fee and still owe it, Equity Residential will apply a credit to your account reducing the outstanding charge to the cost offset amount. You do not need to take any action for this credit.

Step 4 — If you want to opt out and preserve your right to sue Equity Residential independently, mail your signed opt-out request to: Munguia-Brown, et al. v. Equity Residential, et al., c/o CPT Group Inc., PO Box 19504, Irvine, CA 92623 — postmarked by April 16, 2026.

Step 5 — Once your check arrives, cash it promptly. Uncashed checks will eventually be transferred to the California Unclaimed Property program and will not be reissued directly to you.

No action needed — but update your mailing address with CPT Group immediately if you have moved since living at an Equity Residential property.

Important Deadlines and Dates

Frequently Asked Questions

Do I need to file a claim to receive my refund? 

No. CPT Group automatically identifies all eligible class members using Equity Residential’s rental and payment records and mails refund checks to your last known address or applies account credits directly. You only need to act if you want to opt out, object, or update your mailing address. If you have moved since renting from Equity Residential, update your address immediately at equitymunguia-brownlatefeesettlement.com/Login.

Is this Equity Residential settlement legitimate?

 Yes. The settlement, Munguia-Brown, et al. v. Equity Residential, et al., Case No. 4:16-cv-01225-JSW-TSH, is a court-supervised class action in the U.S. District Court for the Northern District of California. It received preliminary approval on February 2, 2026. The official settlement website is equitymunguia-brownlatefeesettlement.com, administered by CPT Group, Inc. Contact the administrator at 1-888-545-0143 or [email protected] to verify any communication.

When will I receive my refund check?

 The final fairness hearing is scheduled for June 26, 2026. If the court grants final approval and no appeals follow, CPT Group will mail refund checks approximately 73 days after the settlement becomes final. Given typical timelines, most eligible tenants can expect checks in late 2026.

What if I miss the April 16, 2026 opt-out deadline?

 If you do not opt out by April 16, 2026, you automatically remain in the settlement and will receive your automatic refund. You also give up your right to sue Equity Residential separately for the late fee claims this settlement covers. Most former tenants will benefit from staying in the settlement and receiving their automatic refund.

Will this settlement refund affect my taxes?

 Refunds of illegally charged late fees may be treated as a return of money you were wrongfully charged — not necessarily as taxable income. However, tax treatment depends on your individual situation. Consult a qualified tax professional if you have questions about how to handle your refund on your federal or state return. CPT Group will issue tax documentation if required.

Why did this case take a decade to resolve? 

The lawsuit was filed in 2016, went through years of discovery and legal motions, proceeded to an 8-day bench trial in June 2023, and received a landmark ruling in April 2024. The complexity of proving that a landlord’s late fee is not a reasonable estimate of actual costs — as required by California Civil Code §1671(d) — required extensive expert testimony on late rent collection costs. The case’s success has now set a major precedent for California tenant rights against excessive late fees.

Is this the same as the Van Cott v. Equity Residential settlement? 

No. These are two separate settlements. The Van Cott settlement ($2.9 million) covered tenants who were first charged a late fee between October 29, 2022, and April 30, 2024 — its claim and opt-out deadlines have already passed (October 2025). This Munguia-Brown settlement ($22.7 million) covers tenants first charged between September 3, 2010, and October 28, 2022, plus Woodland Park tenants. If you received a notice from the Munguia-Brown settlement administrator (CPT Group), you are in this settlement — not Van Cott.

What if my refund check goes to an old address and I never receive it?

 If your check is mailed to an old address and returned undeliverable, it will eventually be transferred to the California Unclaimed Property program. You can search for unclaimed property in your name at the California State Controller’s Office website at sco.ca.gov. Update your mailing address with CPT Group immediately to prevent this — call 1-888-545-0143 or email [email protected].

Sources and References

1. Official Settlement Website — equitymunguia-brownlatefeesettlement.com
2. Settlement Documents — equitymunguia-brownlatefeesettlement.com/Documents

California renters who paid inflated rent as a result of algorithmic pricing by major landlords — including Equity Residential — may also want to review the RealPage rent price-fixing lawsuit and DOJ settlement, which challenges how software used by Equity Residential and dozens of other major landlords kept rental prices artificially high. California residents dealing with other improper fees should also check whether they are owed money under the Leo’s Motel $500,000 occupancy settlement for guests forced to check out before 30 days in Lomita, California.

Last Updated: March 17, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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