A statement regarding the settlement of Cappolina et al. v. Franklin Township et al.
In 2015, a County-Wide Registration Program for Vacant or Abandoned Properties was established, meant to address the problem of the abandonment of properties in foreclosure (so-called “zombie properties”).
The County retained a company known as Pro Champs to administer the program. Under the program, vacant or abandoned properties would be registered for a fee. On April 12, 2016, Franklin Township Committee adopted an ordinance joining in the program. In 2021, a judge found that a substantially similar program was contrary to New Jersey Law.
A class action lawsuit was then filed against Franklin Township, Gloucester County and the now defunct Pro Champs, seeking the disgorgement of $2,413,700.00 in fees alleged to have been collected under the program. Similar lawsuits have been filed against many other municipalities.
Following a mediation conducted by a retired Federal Judge, and including the participation of Franklin’s insurance company, the class action lawsuit was settled with an agreement to provide a partial reimbursement only to people who paid these registration fees.
As part of that settlement, mandatory notice has been provided to property owners in Franklin Township with details and instructions regarding class membership and participation.
Franklin did not admit liability as part of this settlement, and the settlement includes a substantial contribution from Franklin’s insurance company, as well as contribution from the County. Further information regarding the resolution of this matter may be found at the website link.
