2 days ago
Rental company files complaint against Gary Sanitary District
A Griffith-based company has filed a lawsuit against the Gary Sanitary District, challenging the organization's threats to record liens against some real estate.
A Wednesday news release from Portage attorney Patrick McEuen announced that he has filed a lawsuit on behalf of Cavender Properties. The lawsuit says GSD has recorded or threatened to record a lien against properties without complying with notice requirements of Indiana law.
'So far, I have about 20 or more individuals and companies asking to be included in the class,' McEuen said in the news release. 'The court could certify a class of any and all landlords, because thus far, none of the class members received the appropriate notice to permit GSD to record a lien. Indiana law is quite specific. GSD has a (20) day window to notify a landlord of a tenant's delinquency, and the window opens when the bill goes (60) days delinquent.'
The lawsuit also asks GSD to provide all documentation that the agency believes meets the notice required by Indiana code.
A property lien is a legal claim by a creditor to recover an unpaid debt or obligation, according to the National Association of Realtors.
The lawsuit was filed in Lake Superior Court, according to online court records.
The complaint includes four counts: action for declaratory relief, cloud on title and quiet title action, preliminary injunction and a temporary restraining order.
The restraining order, if ordered, will stop GSD from 'unlawfully attempting to collect fees' or recording a lien against a property without compliance in the notice requirements, according to the filed complaint.
A GSD representative declined to comment Thursday morning, saying in an email that the organization will comment once formal notice of the lawsuit is received.
In May, multiple landlords spoke against potential liens on their properties at a GSD meeting.
Executive Director Ragen Hatcher previously said an Indiana State Board of Accounts audit found the department has a 'number of outstanding bills.' Per state law, GSD has three years to either put liens on properties or make owners aware of the liens, according to Post-Tribune archives.
In April, GSD sent lien notices for 2022 and sent 2023 lien notices in May. At the time, Hatcher said 2024 notices would be sent either at the end of June or beginning of July.
Gary landlords expressed worries that liens will be charged to property owners rather than renters who haven't paid bills. Local attorney Darnail Lyles said at the meeting that lien notices should be given in a way that allows property owners to get money from renters who aren't paying bills.
