New Legislation on Landlord’s Out-of-Pocket Expenses

One of the General Assembly’s last acts before adjourning in June was the enactment of S.L. 2018-50 (S 224), amending landlord-tenant law in apparent response to a decision by a Wake County Superior Court Judge. See “It’s Landlords vs. Tenants in Eviction Battle,” Raleigh News & Observer 6/18/2018.

Hargrove v. Grubb Management, Inc.

Superior Court Judge Shirley ruled in favor of plaintiff/tenant Jordan Hargrove in an action against his landlord for unfair debt collection practices in violation of GS 75-54. The judge’s decision was based on a finding that the landlord had violated GS 42-46 by charging Mr. Hargrove $191 in connection with a prior summary ejectment action dismissed by the landlord before trial. According to media accounts, the landlord required payment of the following fees as a condition of dismissing the action: (1) all past-due rent and the next month’s rent in advance; (2) a late fee of $43.75 pursuant to GS 42-46(a); (3) an administrative fee of $43.75 pursuant to GS 42-46(e); (4) $96 reimbursement for court costs and $30 for service of process; and (5) attorney fees. (I’m guessing at these amounts based on the information in the news articles and order.)