(Legal Newsline) —District of Columbia Attorney General Karl A. Racine announced
Jan. 18 that the district will settle a class-action lawsuit filed by Boies,
Schiller & Flexner on behalf of property owners who lost homes and home
equity because of the district’s tax-sale foreclosure system. This system has
since been reformed so as to provide more safeguards for consumers.
“This settlement is good news for our city, because it provides the
relief that the D.C. Council intended when it passed reforms of our tax-lien
statute,” Racine said.
class action case, the plaintiffs argued the district’s tax-lien system unfairly
deprived homeowners of surplus equity when they failed to pay their real
“We commend The
Washington Post and Legal Counsel for the Elderly, who helped uncover
in 2013 that vulnerable district citizens who were unable to pay real property
taxes could lose their homes and home equity over a small tax bill,” said Bill
Isaacson of Boies, Schiller & Flexner. “Now we also recognize the efforts
of the D.C. Council to stop this injustice from happening in the future and
Attorney General Racine’s office for entering this settlement to remedy what
has happened before.