Legal Notice

Please read this Notice carefully. Your legal rights may be affected whether or not you act.

A Colorado Court authorized this notice. This is not a solicitation from a lawyer.

This Settlement resolves litigation concerning alleged negligence of eRentPayment, LLC (“eRent”) and Base Commerce, LLC (d/b/a Check Commerce) in the management of funds received from tenants intended for Plaintiffs (the “Landlords”) in the case entitled Todd Wasulko, et al. v. eRentPayment, LLC, et al. v. Base Commerce d/b/a CheckCommerce, Case No. 2017-cv-031088 (the “Lawsuit”).

You may be eligible for payment based on the Settlement of the Lawsuit if you are an eRent customer that

  1. agreed to utilize eRent’s online rental payment-collection service to receive or process payments;
  2. whose tenant(s) made a payment using eRent’s website between October 3, 2017 and October 12, 2017 (the “Class Period”) or who made payments to tenant(s) using eRent’s website during the Class Period; and
  3. did not receive the payment made by the tenant or the tenant did not receive the payment made by the eRent customer.

If you received, by mail or email, a Claim Statement addressed specifically to you or your business, then your claim will automatically be processed and you do NOT need to submit a claim.

If you qualify as a member of the Settlement Class and your copy of this Notice was not accompanied by a Claim Statement addressed specifically to you or your business, then you will need to fill out and submit a Claim Form which is available here.

The Court has not expressed any opinion concerning the truth of any allegations or defenses asserted in the Lawsuit. This Notice is solely to advise you of the proposed Settlement of the Lawsuit and of your rights in connection with the Settlement.

  • Information about excluding yourself from the Settlement is here.
  • Information about objecting to the Settlement is here.

What is the Lawsuit about?

Plaintiffs have asserted claims alleging that Defendants eRent and Check Commerce are liable for a failure to fund rental payments from tenants to the Landlords or payments from Landlords to tenants directed through eRent’s website between October 3, 2017 and October 12, 2017. eRent and Check Commerce each deny any liability and have compelling legal defenses, including that any failure to transfer funds resulted from the conduct of a bankrupt non-party, eCHECKit.

To avoid the expense, uncertainty, and risks of continued litigation, eRent, Check Commerce, Named Plaintiffs and Plaintiffs’ Counsel consider it desirable to resolve the lawsuit through settlement. Plaintiffs’ Counsel believes that a settlement now provides the most money to the Settlement Class. A proposed settlement has been reached between Plaintiffs and Defendants eRent and Check Commerce in the Lawsuit.

Are you a member of the Settlement Class?

The “Settlement Class” consists of any eRent customers that

  1. agreed to utilize eRent’s online rental payment-collection service to receive or process payments;
  2. whose tenant(s) made a payment using eRent’s website between October 3, 2017 and October 12, 2017 (the “Class Period”) or who made payments to tenant(s) using eRent’s website during the Class Period; and
  3. did not receive the payment made by the tenant or the tenant did not receive the payment made by the eRent customer.

You are not a member of the Settlement Class if your tenants did not make any payments through eRent’s website; or if your tenants initially submitted payment through eRent’s website between October 3, 2017 and October 12, 2017, but then had their payment returned to them by reversing the transaction.

You are not a member of the Settlement Class if you utilized eRent’s online rental payment services as a tenant and not as a landlord.

What does the Settlement Provide?

The proposed Settlement establishes Settlement Funds totaling $450,000.

The Settlement Funds will be used to pay

  1. the Settlement Class members in this Lawsuit;
  2. the cost to administer the Settlement;
  3. attorneys’ fees;
  4. litigation expenses, and
  5. payments to the Named Plaintiffs.

The Settlement Agreement and the papers filed in support of the Settlement are available for review and download here.

How much money can you get?

  • No money will be distributed to the Class yet. The plan of distribution for the Settlement funds will depend on several factors, including the percentage of the Members of the Class who opt out and whether either Defendant exercises its discretionary right to decline to participate in the Settlement because a threshold of Class member participation is not met.
  • If the number of Class Members who request to be excluded from the Settlement exceeds 15% of the Class or represents in excess of $100,000.00 in aggregate claims, then either Defendant or both may elect to withdraw from the Settlement. If Defendant Check Commerce withdraws, Settlement Funds will be reduced by $250,000. If Defendant eRent withdraws, Settlement Funds will be reduced by $200,000.
  • If the Court approves the Settlement, each member of the Settlement Class who does not opt-out will receive a distribution from the Settlement.
  • The amount of your distribution will be calculated based on the Defendants’ records that show the amount of your unpaid rental payments as described in your Claim Statement. If you disagree with this amount, you can challenge the information by contacting the Settlement Administrator and submitting clear documentary evidence that you are owed a different amount of rental payments. If you do not challenge the amount of unpaid rent before the deadline provided in the Claim Statement, then the Settlement Administrator will use the amount listed in your Claim Statement to determine your distribution from the Settlement Fund. The Settlement Administrator is authorized to resolve any dispute regarding your unpaid rental payments, subject to the Court’s review and approval.
  • Details of the proposed distribution of the Settlement Funds are set forth in the Joint Motion for Approval of Class Settlement (“Joint Motion”), which is posted here.
  • In summary, the Joint Motion provides for distribution of the Settlement Funds as follows:
    • $299,000 to be allocated, as described above, to members of the Settlement Class;
    • The Named Plaintiffs shall share an incentive award of $10,000 as follows: (i) $3,000.00 for both Rasheda Mayner and Todd Wasulko, and (ii) $2,000.00 for both Ying Li and Manish Singh, in addition to their settlement payments.
    • The expenses of the Settlement Administrator for notice and administration of this Settlement. Such expenses were estimated to be $19,500 but may be greater. Plaintiffs’ Counsel shall seek the Court’s review and approval if such expenses exceed $25,000.
    • Plaintiffs’ Counsel’s fees shall be paid one-time cash payout equal to 27% of the gross Settlement proceeds or $121,500.
  • Claim Statements have been calculated with total administrative costs assumed to be $25,000.