Supreme Court Case Victor Worledge, Matthew Hall, Lynne Kelly, and Michael Bartholic, and all others similarly situated, v. Riverstone Residential Group, HSC Real Estate, Creekside Apartments, Wildflower Apartments, Shiloh Glen, and 4000 Mullan Road LLC

Issues on Appeal 1.Whether the District Court abused its discretion by admitting new evidence submitted with the Plaintiffs’ reply brief. 2.Whether the District Court abused its discretion in determining that the proposed class satisfied M.R. Civ. P. 23 (a)’s prerequisites to class certification. 3.Whether the District Court abused its discretion by certifying the class under M. R. Civ. P. 23 (b)(3)

Background This case involved a number of multi-unit apartment buildings located in Missoula and Billings. The tenants alleged that the rental agreements at all four apartment complexes were almost identical and contained provisions that violated the Montana Residential Landlord Tenant Act and the Montana Security Deposit Act. The tenants filed their leases as exhibits. The owners then filed their answers to the complaint.

Tenants Move to Certify a Class Action The tenants alleged that the following provisions included in their leases are prohibited by law: Cancellation Fees and Liquidated Damage Clauses Provisions requiring the complete forfeiture of security deposits instead of qualified deductions Requiring payment of non-refundable fees

Provisions requiring non-refundable pet deposits Provisions exonerating the owners from any risk associated with the tenants’ loss of personal property Provisions requiring the tenants to pay all of the owners’ attorney’s fees – regardless of fault Provisions requiring the tenants to indemnify the owners for any injuries to guests.

The Landlord Tenant Act A rental agreement may not provide that a party: (1) agrees to waive or forego rights or remedies under [the Landlord Tenant Act]; (2) authorizes any person to confess judgment on a claim arising out of the rental agreement; or (3) agrees to the exculpation or limitation of liability resulting from the other party’s purposeful misconduct or negligence to indemnify the other party for the liability or the costs or attorney’s fees connected therewith.

The Landlord Tenant Act Provisions prohibited under MCA are unenforceable. “If a party purposefully uses a rental agreement containing provisions known by the party to be prohibited, the other party may recover, in addition to...actual damages, an amount up to 3 months’ periodic rent.”

Class Action Requirements There are six threshold requirements to class certification under M. R. Civ. P. 23 (a)(b): Numerosity Commonality Typicality Adequate Representation Predominance Superiority

Class Action Granted The District Court granted the tenants’ motion for class certification. The court defined the class as follows: All persons who had apartment rental agreements...between June 11, 2011, to present, where the rental agreements contained illegal rental provisions in violation of the Montana Residential Landlord Tenant Act and/or the Montana Security Deposit Act.

Supreme Court Decision The Montana Supreme Court affirmed the District Court’s decision to certify the plaintiffs’ case as a class action.