Essex Property Trust $19.25M California security deposit settlement (Norman v. Essex)

Former tenants of Essex apartment communities in California could share in a proposed $19.25 million cash settlement over security deposit deductions, and many would also have old move-out balances wiped out automatically. Essex has also agreed to forgive $8.7 million in turnover debt and to change how it bills move-out charges.

The settlement resolves Norman v. Essex Property Trust, Inc., a class action in San Diego Superior Court. Tenants say Essex kept deposit money for cleaning, repairs and other charges without giving them the vendor invoices and receipts that California law requires. Essex denies liability.

The settlement is not final. A judge will consider preliminary approval on November 13, 2026. There is no claim form or settlement website yet. This page explains who may qualify, what the deal offers and what to do before notice goes out.

The plaintiffs are nine former Essex tenants: Alexis Norman, Nicolette Cochran, Jeffry Bai, Nazali Ghazari, Alexander Charles, Felipe Cozachevici, Adrian Magdaleno, Alisa Abed-Stephen and Emma Aistrop.

The defendants are Essex Property Trust, Inc., a Maryland corporation, along with Essex Portfolio, L.P., Essex Management Corporation and related entities. The motion says Essex and its affiliates own, operate or manage apartment communities across California. Times of San Diego, citing internal company documents, reports that Essex owns 47,874 apartment units in California, including 5,311 in San Diego County.

Class counsel are Hogue & Belong and Robinson & Parker LLP, both of San Diego. Attorney Jimmie Davis Parker told Times of San Diego the deal would help more than 200,000 former Essex tenants. The motion asks the court to appoint CPT Group, Inc. as settlement administrator.

The case is No. 37-2022-00038519-CU-NP-CTL, assigned to Judge Judy S. Bae in Department C-62.

The lawsuit was filed on September 27, 2022. According to the preliminary approval motion:

• The court denied Essex's early summary judgment motion in November 2023, finding a factual dispute over whether the papers Essex sent with move-out statements counted as a "bill, invoice, or receipt." An appeals court denied Essex's writ petition.
• The nine plaintiffs filed the current complaint on March 26, 2024, under California's security deposit law and its Unfair Competition Law. The court left the class allegations largely in place in June 2024.
• A plaintiffs' review of a 10% sample of move-out files alleged violations in 82.5% of class member move-outs reviewed. Essex disputed the method and findings.
• Plaintiffs also alleged that some deductions were backed only by purchase orders marked "Not Approved" and that tenants were billed full vendor prices while Essex paid discounted ones. Essex disputed these findings and denied any bad faith.
• After three mediations, retired Judge Jay Gandhi made a settlement proposal that both sides accepted on April 20, 2026. The parties signed the settlement agreement on October 16, 2026, and plaintiffs filed for preliminary approval on October 21.

The tenants say Essex deducted cleaning, painting, repair and replacement costs from deposits without the documentation that Civil Code section 1950.5 requires when those charges exceed $125. The motion says Essex charged $85.7 million against deposits during the class period, and that the cash and debt relief equal about 32.6% of that figure.

Essex does not oppose the settlement but expressly denies all liability, according to the motion. In a statement to Times of San Diego, an attorney for Essex said the company "denies any wrongdoing but recognizes the risks, expense, and uncertainty of continued litigation." In opposing class certification, Essex put its turnover charges at about $74 million.

The court has not approved the settlement. At the November 13 hearing, the judge will decide whether to grant preliminary approval, certify the class for settlement only and approve the notice plan. No court has found that Essex broke the law, and the class certification motion was never decided.

The proposed settlement class includes former residents of Essex's California properties whose leases ended between September 27, 2018 and the date of preliminary approval, and who either:

• had more than $125 taken from their deposit for cleaning, repairs (including painting) or replacements, combined, or
• had any amount taken for something other than unpaid rent or cleaning and repairs, such as utilities or late fees.

People who already have a final judgment against or in favor of Essex on these claims are excluded. Separately, the debt forgiveness applies to every former California tenant who owes covered turnover debt, whether or not they are in the class.

1. Make sure notice can reach you. Notice goes by email where Essex has a valid address, otherwise by mail. The administrator will update addresses through the National Change of Address database, so keep mail forwarding current.
2. Find your move-out statement and any deposit refund records. They show your deductions.
3. Check your credit report for an Essex collection account. The settlement calls for those to be corrected or deleted.
4. Know the refund rule. Since May 15, 2026, Essex has been barred from collecting covered turnover debt, and payments made on or after that date are to be refunded within 10 days after preliminary approval.
5. Watch for notice from CPT Group by email or mail.

• Cash: After court-approved fees and costs, the net fund is split pro rata among claiming households based on each household's qualifying charges. Co-tenants split their household's share equally unless they say otherwise. The per-person amount is unknown. Essex's records show an average of about $329 retained per move-out tenant.
• Debt forgiveness: Turnover debt from about September 27, 2018 to December 31, 2023 would be erased automatically, with no claim needed, and adverse credit reporting corrected.
• Practice changes: Essex agreed to pass vendor discounts on to tenants, train staff on deposit law and send vendor invoices with move-out statements when turnover charges exceed $125.

Class counsel may ask for up to 35% of the combined $27.95 million cash and debt relief, or $9,782,500, plus expenses estimated at $560,000. Service payments of up to $15,000 per named plaintiff and about $140,000 in administration costs would also come out of the fund. No money goes back to Essex.

• November 13, 2026, 9:10 a.m.: Preliminary approval hearing.
• December 14, 2026 (proposed): Notice date if the judge approves on November 13.
• January 28, 2027 (proposed): Last day to claim, opt out or object, 45 days after notice.
• March 12, 2027 (proposed): Final approval hearing. The court sets the actual date.

To get cash you must submit a claim form online or by mail; it will not ask for a Social Security number. You can opt out by mailing a signed request, keeping your right to sue separately but giving up a payment. Class members who stay in release deposit-related claims covered by the settlement.

• Security deposit deduction: Money a landlord keeps from a deposit after move-out.
• Turnover debt: A balance Essex says a former tenant still owes for cleaning, repairs, painting or replacement after the deposit ran out.
• Civil Code section 1950.5: California's security deposit law, which requires itemized statements and, above $125, copies of invoices or receipts.
• Pro rata: Divided in proportion to each claimant's share.
• Cy pres: Leftover money given to related charities. Here, three tenant legal aid groups.

If Judge Bae grants preliminary approval, Essex must refund recent turnover debt payments, send class data to the administrator and fund the $19.25 million. CPT Group would then email or mail notice and open a settlement website and phone line. Class Action Pulse will add the official claim link and confirmed deadlines when they are public.

This page relies on the October 21, 2026 preliminary approval motion and proposed order posted by class counsel, plus Times of San Diego coverage. The settlement agreement itself was not reviewed, and all post-hearing dates are proposals that the court may change. Payment amounts per person cannot be estimated until claims are counted.

Class Action Pulse is not a law firm or settlement administrator and does not guarantee eligibility or payment. This article is general information, not legal advice.