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Indiana Housing Program Faces Class Action

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Case ID: 4922 | Family | 10/04/2006

A judge recently certified a complaint against the Fort Wayne Neighborhood Housing Partnership as a class-action lawsuit.

Eight clients of the agency filed a lawsuit in April, alleging the partnership sold them homes “at grossly inflated prices” and set them up for failure. They have also accused two appraisers of being in cahoots with the partnership.

By certifying a suit as class action, it essentially makes it easier for the group of people in the same situation to proceed with their suit. It also allows for the possibility that any of the estimated 750 partnership clients to join the lawsuit, even if they weren’t among the original eight plaintiffs.

The complaint against the partnership was certified as class action. The complaint against the two appraisers was conditionally certified as class action.

During a brief hearing, Judge David Avery said there are possible problems with only conditionally certifying the claims, which the attorneys initially wanted. Such an action could have allowed him to later decertify the suit but might have created problems for people who wanted to seek legal action but were no longer in the area and therefore unaware of the change.

The main discussion focused on whether to certify the claims against the partnership and the appraisers as class action. One of the questions raised included the accusation that the appraisers worked with the partnership to inflate the home prices.

The complaint against the partnership was certified as class action, as well as the complaint against the two appraisers.


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