The HNN Communities lawsuit was a 2019 class action brought by former tenants who said the Washington affordable-housing manager kept their security deposits without the written justification state law requires, then handed the balances to a debt collector that added interest calculated back to the move-out date. A federal judge certified the case as a class action in September 2020, and it settled for $1.6 million before being formally closed in June 2021.1Terrell Marshall Law Group. Consumer Protection2CourtListener. Jammeh v. HNN Associates LLC
Who Sued and What They Claimed
Two former tenants of an Everett apartment complex, Adama Jammeh and Oumie Sallah, filed the complaint in April 2019 in King County Superior Court against HNN Associates LLC, Gateway LLC, and Columbia Debt Recovery LLC. The case was removed to the U.S. District Court for the Western District of Washington as Jammeh v. HNN Associates, LLC, No. 2:19-cv-00620, before Judge James L. Robart.2CourtListener. Jammeh v. HNN Associates LLC
The tenants brought claims under Washington’s Residential Landlord-Tenant Act, the Washington Collection Agency Act, and the Washington Consumer Protection Act, along with federal Fair Debt Collection Practices Act claims for false or misleading representations and unfair practices.3CaseMine. Jammeh v. HNN Associates, Order Granting Class Certification
The Security Deposit Allegations
Washington’s landlord-tenant law gives a landlord 30 days after a tenant moves out to either return the deposit or send a detailed written statement itemizing any amounts withheld, complete with invoices or repair estimates. Deductions for normal wear and tear are not allowed. Miss the deadline and the landlord can be held liable for the full deposit; intentional refusals can be doubled by a court.4Washington State Legislature. RCW 59.18.2805Washington State Legislature. RCW 59.18.260
According to the class certification order, HNN ran every move-out packet through a corporate “Move-Out Accounting Process” that required central approval before anything went to the former tenant. Using HNN’s own records, the plaintiffs identified 531 tenants who never received a move-out statement within 21 days of vacating.3CaseMine. Jammeh v. HNN Associates, Order Granting Class Certification
What Happened After the Deposit Was Kept
HNN assigned outstanding tenant balances to Columbia Debt Recovery (CDR). CDR’s software automatically added interest running all the way back to each tenant’s move-out date. Court filings showed CDR pursued 1,986 former HNN tenants after March 2, 2017.3CaseMine. Jammeh v. HNN Associates, Order Granting Class Certification
The plaintiffs said CDR alone decided whether payments went to principal or interest, with no guidance from HNN, and that CDR kept a 35% commission on non-legal accounts. They argued the interest was not legally owed and that collecting it violated both the FDCPA and Washington’s Collection Agency Act.3CaseMine. Jammeh v. HNN Associates, Order Granting Class Certification
Who Was in the Class
Judge Robart certified two overlapping groups on September 9, 2020. One covered tenants who never received a timely move-out statement after leaving an HNN property, with records reaching back to late 2015. The other covered former tenants CDR tried to collect from after March 2, 2017. At the time, HNN managed just over 6,000 units across 28 communities, 24 of them restricted to Low-Income Housing Tax Credit-qualified tenants.3CaseMine. Jammeh v. HNN Associates, Order Granting Class Certification6Bloomberg Law. Tenants Win Class Status in Suit Over Deposits, Collections
The $1.6 Million Settlement
After certification, the parties settled. Terrell Marshall Law Group, which represented the tenants, reported that the settlement recovered $1.6 million for the class of low-income tenants and described the arrangement as affecting tenants across more than 20 low-income housing communities in Washington.1Terrell Marshall Law Group. Consumer Protection7Terrell Marshall Law Group. Celebrating Successes in 2020 The case was formally terminated on June 9, 2021.2CourtListener. Jammeh v. HNN Associates LLC Publicly available court records do not spell out how the $1.6 million was divided among class members or what individual payouts looked like.
A Related Case Against the Same Debt Collector
CDR’s back-dated interest practice was not confined to HNN properties. In Columbia Debt Recovery, LLC v. Jordan Pierce and Donte Gardiner, two tenants of properties managed by Thrive Communities brought counterclaims describing the same pattern: prejudgment interest calculated from the move-out date on amounts that had not yet been determined to be owed, with claims under the Washington Collection Agency Act, Washington Consumer Protection Act, and FDCPA. CDR settled that case for $87,000 and denied liability.8CPT Group Case Info. CDR Settlement Agreement