CHICAGO--(BUSINESS WIRE)--Dec. 7, 2004--Equity Residential
(NYSE:EQR) today issued a statement addressing its partial victory in
the Palm Beach County class action case of Yates, et. al. v. Equity
Residential.
The lawsuit, filed in late 2002 and tried in August 2004,
challenged the enforceability of certain charges that Equity assessed
residents who terminated their leases early or failed to give notice
of their intent to vacate at the end of the lease term. The challenged
practices were discontinued over a year ago. On December 1, 2004, the
Circuit Court issued a ruling that certain charges were unenforceable,
ordered Equity to establish a class fund of $1.629 million (less than
20% of the amount requested at trial) and retained jurisdiction to
consider an award of reasonable attorneys' fees. The Court also barred
Equity from seeking to collect any such outstanding charges, which
will not result in any earnings charge as Equity had not previously
recorded these uncollected amounts as income.
"While we are disappointed that the Court found that certain of
our charges are unenforceable and will appeal that decision if
necessary, we are pleased that the Court rejected substantial parts of
the plaintiffs' case and ordered a class fund that is considerably
less than the amount requested," said Bruce C. Strohm, Equity
Residential's Executive Vice President and General Counsel. "The
company has submitted insurance claims for coverage of any losses we
may incur as a result of this lawsuit, including both our and the
plaintiffs' attorneys' fees. Whether coverage ultimately will be
provided is uncertain."
An anticipated earnings charge of $1.629 million, which will be
taken in the fourth quarter 2004, will not meaningfully impact the
company's earnings guidance provided on November 2, 2004.
Equity Residential is the largest publicly traded apartment
company in America. Nationwide, Equity Residential owns or has
investments in 947 properties in 33 states and the District of
Columbia consisting of 201,917 units. For more information on Equity
Residential, please visit our website at www.EquityResidential.com.
CONTACT: Equity Residential
Marty McKenna, 312-928-1901
SOURCE: Equity Residential