Texas Supreme Court Rules Against Former Tenants in Lawsuit Against Apartment Company

The Texas Supreme Court has ruled against former tenants in a lawsuit against American Campus Communities, Inc. The former tenants alleged that the company had omitted required language from their leases, specifically the bold or underlined language required by section 92.056(g) of the Texas Property Code, which informs tenants of the remedies available when a landlord fails to repair or remedy conditions that materially affect the tenant’s physical health or safety.

The tenants sought certification of a class on the theory that the omission of the required lease language alone entitled each class member to recover statutory damages, penalties, and attorney’s fees. The trial court certified the class, but the Texas Supreme Court held that the class certification was improper because the tenants’ claim had no basis in law.

The Court held that a court may not properly certify a class under Texas Rule of Civil Procedure 42 when the proposed class claim is facially defective as a matter of law. The Court reversed the lower court’s judgment and remanded the case to the district court for further proceedings consistent with its opinion.

The decision has significant implications for tenants in Texas who may be seeking to sue their landlords over alleged violations of the Texas Property Code. The ruling underscores the importance of ensuring that claims have a legal basis before seeking certification of a class.