San Diego, California — Former residents of Essex Property Trust apartment communities throughout California will benefit from a proposed class action settlement valued at approximately $27.95 million, along with meaningful improvements to how security deposits are handled going forward. The settlement resolves Norman, et al. v. Essex Property Trust, Inc., et al., San Diego Superior Court Case No. 37-2022-00038519-CU-NP-CTL, and will be presented to the Court for preliminary approval on November 13, 2026.

The lawsuit was filed in September 2022 by former tenants Alexis Norman and Nicolette Cochran and later joined by seven additional plaintiffs. It concerned move-out charges for cleaning, repairs, painting, and replacements, and the itemization and vendor documentation required by California Civil Code section 1950.5. Essex denies the allegations and any wrongdoing. After several years of litigation, the parties worked together to reach a resolution that provides substantial, immediate benefits to former tenants.

Settlement Highlights

• $19.25 million non-reversionary cash fund. Eligible former tenants who submit a claim will share in the fund in proportion to the qualifying charges deducted from their deposits. No money returns to Essex; any unclaimed funds will support tenant legal-aid organizations in San Diego, Los Angeles, and the Bay Area.
• $8.7 million in automatic debt forgiveness. Essex will forgive all outstanding move-out turnover balances it claims from former California tenants from September 27, 2018 through December 31, 2023. No claim is required, and collection and credit reporting on those balances have already been paused.
• Credit reporting corrections. Essex will ask the credit bureaus to correct or delete negative reporting tied to the forgiven balances.
• Forward-looking improvements. Essex will pass any vendor discounts on turnover work through to tenants, provide annual and onboarding training on California deposit law, and update its move-out policies to provide vendor invoices, receipts, or bills, with compliance confirmed for three years.

A Mediator Who Stayed the Course

The settlement was reached with the assistance of the Honorable Jay C. Gandhi (Ret.) of Phillips ADR Enterprises, a former United States Magistrate Judge for the Central District of California. Judge Gandhi remained engaged with the parties over many months and, at a session in April 2026, issued a mediator’s proposal that both sides accepted.

“Judge Gandhi was simply outstanding,” said Jeffrey L. Hogue of Hogue + Belong, Class Counsel for the plaintiffs. “He stayed with this case, earned the trust of everyone in the room, and found the common ground that made this agreement possible. We also appreciate the professionalism of Essex and its counsel in working toward a resolution. The result is a strong one for thousands of California renters.”

“This settlement puts money back in tenants’ pockets, clears millions of dollars in balances, and sets a constructive path forward on security deposits,” said Tyler Belong of Hogue + Belong. “It is an excellent outcome for renters across the state, and we are proud of what it accomplishes.”

What Happens Next

The settlement is subject to Court approval. If the Court grants preliminary approval, a Court-appointed settlement administrator will send notice to class members by email and mail explaining how to submit a claim, opt out, or object. Former tenants do not need to take any action at this time.

About Class Counsel

The plaintiffs and the proposed class are represented by:

Lead Counsel: Jeffrey L. Hogue and Tyler J. Belong of Hogue + Belong, APC; and

Co-counsel: Robinson & Parker LLP

Media Contact: Andrea Montoya Hogue + Belong 3555 5th Avenue, Suite 300, San Diego, CA 92103 / office number 619.238.4720 / amontoya@hoguebelonglaw.com

CASE INFORMATION
San Diego Superior Court
Norman, et al. v. Essex Property Trust, Inc., et al.
Case No. 37-2022-00038519-CU-NP-CTL

Case Files

• 2026-10-21-Proposed-Order-re-Pltffs-MPA.pdf
• 2026-10-21-Norman-Notice-and-Motion-for-Preliminary-Approval-of-Settlement.pdf
• 2026-10-21-HOGUE-DEC-ISO-MPA.pdf
• 2026-10-13-Downs-DEC-ISO-MPA.pdf