Rolf Martin Lang LLP Protects Refundable Entrance Fees for Ohio Independent Living Providers

Rolf Martin Lang LLP recently secured appellate court victories that protect the refundable entrance fee model used by many independent living providers in Ohio. These rulings are a significant win for providers facing lawsuits related to their entrance fees.

The Legal Threat to Refundable Entrance Fees

A group of plaintiff attorneys filed multiple lawsuits on behalf of former or deceased residents, claiming that refundable entrance fees for independent living units were actually security deposits under Ohio law. If this argument had succeeded, providers would have been required to pay interest on these fees, return them within 30 days of lease termination, and face penalties for noncompliance, including double the fee amount and attorney fees.

Given that entrance fees often range from five to six figures, such requirements could have severely disrupted the operations of many providers, forcing some into bankruptcy and handing massive windfalls to plaintiffs and their attorneys.

Appellate Court Overturns Trial Court Ruling

After a trial judge initially sided with plaintiffs, Rolf Martin Lang LLP, led by Joe Petros, appealed the cases. Our team presented compelling arguments, leading to unanimous appellate court decisions reversing the lower court’s rulings. The court agreed that the fees in question were not security deposits and, therefore, were not subject to Ohio landlord-tenant laws governing such deposits.

Why This Matters for Providers

This decision provides relief for providers that use refundable entrance fees, but it underscores the importance of structuring such fees correctly. Courts closely examine the details, and improperly drafted agreements could still invite costly litigation.

Protect Your Business

At Rolf Martin Lang LLP, we help independent living providers navigate legal complexities, safeguard their business models, and defend their entrance fee policies and agreements when challenged. We also offer thorough reviews of entrance fee agreements to ensure they comply with Ohio law and reduce the risk of future disputes.

Contact Us Today

Stay ahead of potential risks. Contact Joseph Petros at Petros@RolfLaw.com or call 216.682.2130 to schedule a consultation.