The JWB Property Management SCRA settlement has attracted national media attention in bringing to the fore the way in which the Servicemembers Civil Relief Act (SCRA) safeguards the U.S. military personnel against unfair housing agreements. Recently, the U.S. Department of Justice (DOJ) settled with the Jacksonville, Florida-based firm, JWB Property Management LLC, which was accused of charging active-duty servicemen, and women a set of illegal early termination fees because they chose to end their lease because of military relocation orders.
The case can be a significant reminder of the legal safeguards that have been assured under the SCRA as well as the persistence of the government to protect the servicemembers and their families by never penalizing them due to their discharge of duty in the military.
Understanding the Background
JWB Property Management wrongly imposed early termination fees on six U.S. servicemen who ended residential leases in good faith as a result of formal military transfer or deployment orders. According to the Servicemembers Civil Relief Act (SCRA) penalty is not proportional to termination of leases by the active-duty personnel who are entitled to receive relocation or deployment orders.
But, in the case, the DOJ discovered that JWB Property Management did not respect those safeguards. Under the JWB Property Management SCRA settlement, the company made an agreement to compensate the affected servicemembers between more than 39,000 and enter the payment of a $25,000 civil penalty to the United States. The settlement further necessitates that JWB would amend its internal policies, train its staff better and make complete adherence to SCRA going forward.
What the Settlement Includes
The settlement agreement will not just compensate the individuals who were faced but also avert other recurrence of such violations in the future. Here’s what it covers:
- Financial Compensation: JWB Property Management will compensate six servicemen who mistakenly paid their early termination charges in the total amount of 39,168.50.
- Civil Penalty: The federal government will receive a civil fine of $25,000 paid to the company.
- Policy Revisions: JWB needs to revise its internal policies and training programs to fit into SCRA regulations.
- Ongoing Compliance: The company should have clear procedures to establish the military status of a tenant before any lease-related fee is charged.
In the process of accepting the terms, JWB has realized the need to be compliant with federal laws safeguarding the rights of military personnel.
DOJ’s Commitment to Servicemember Protections
In a statement by the DOJ, its Civil Rights Division assistant Attorney General, Harmeet K. Dhillon, pointed out that military families already deal with huge burdens caused by frequent deployments and relocation. The landlords or property managers will not be in a position to contribute to such a misery as unlawful charges by the government.
U.S. Attorney Gregory W. Kehoe of the Middle District of Florida further stated that the Department is committed to serving those who have served this country so much, and that they should be reassured with strong legal protection in return.
Since 2011, the application of the SCRA by the DOJ has succeeded in acquiring over $483 million monetary relief in regard to more than 148,000 servicemen in the United States alone. The most recent case of federal enforcing the rights of people serving in the armed forces is the JWB Property Management SCRA settlement.
JWB’s Response
After settlement JWB Property Management indicated that the situation was brought about by administrative mistakes that had affected less than one percent of its military move-outs. The company indicated that it was prompt to mend the mistakes before the deposits were wrongly billed. JWB also indicated its ongoing support of military families, noting its programs that offer free applications and its associations with charities concerned with veterans like K9s for Warriors.
Although some efforts have been made by JWB to address the issue, the case reveals the significance of the full awareness and adherence to the SCRA by the landlords in order not to risk expensive litigation.
Why This Settlement Matters
The JWB Property Management SCRA settlement is a powerful statement to the property managers, landlords and real estate professionals across the country. It emphasizes that any failure to act in accordance with the SCRA will lead to severe financial fines and reputation.
In the case of servicemembers, the case strengthens their right to terminate a lease to move without penalty in case of an order to move. To property owners it acts as a reminder to always ensure a tenant is military and familiar himself with federal housing laws that govern military families.
Landlords renting to servicemembers should engage in training programs and have effective channels of communication to serve as a reminder of the SCRA. This is not just a way of avoiding lawsuits but also a way of creating trust and respect towards the men and women who serve the country.
Final Thoughts
The JWB Property Management SCRA settlement is a manifestation of the current attempts of the U.S. Department of Justice to ensure that military families are not the victims of unethical financial activities. It is a reminder to businesses that it is not merely their option to know and respect the rights of servicemembers, but a law.
The property management companies can contribute positively to the people who are sacrificing on a daily basis to ensure national security by practicing fairness and keeping themselves up to date with the federal protections such as the SCRA.