Arnold & Porter and Legal Aid DC Reach Settlement in Marbury Plaza Bankruptcy Case, Securing Eviction Protections for Tenants

Arnold & Porter and Legal Aid DC recently reached a settlement agreement on behalf of tenants in the Marbury Plaza apartment complex, marking a significant milestone in residents’ ongoing battle for improved conditions at the complex, which has more than 650 units. The case is part of a series of legal battles at Marbury Plaza, where tenants have consistently reported health and safety concerns.

“It was important that Marbury Plaza tenants have a real voice in these proceedings. This isn't just about an apartment complex: It's about the hundreds of families who live there and who deserve to have a seat at the table,” said Arnold & Porter partner Rosa Evergreen.

In 2021, the D.C. Office of the Attorney General filed a lawsuit against Marbury Plaza’s previous owner, MP PPH, LLC, for housing code violations. The owner subsequently agreed to make the necessary repairs. In April 2023, D.C. Superior Court Judge Neal Kravitz held MP PPH in contempt of court for failing to fulfill its obligations and ordered the company to reduce tenants’ rents by 50 percent for the months that the court-ordered repairs were not completed. MP PPH subsequently declared bankruptcy and attempted to sell the property. Arnold & Porter and Legal Aid DC joined the bankruptcy case in November 2023 to serve as counsel to a committee of 135 tenants and to advocate for the interests of the property’s residents.

The settlement agreement, reached after extensive negotiations led by Arnold & Porter and Legal Aid DC as part of the property owner’s bankruptcy case, provides, among other things, that approximately 80 tenants facing eviction are eligible to have their cases dismissed, approximately 240 tenants involved in bankruptcy proceedings will receive financial compensation, and all tenants will retain their rent credits and security deposits following the property’s transfer to the new owner.

The settlement was confirmed by Judge Elizabeth Gunn of the U.S. Bankruptcy Court for the District of Columbia on September 17, 2024. The full terms and benefits of the settlement, as confirmed by the bankruptcy court, went into effect on December 31, 2024, the date the sale of the property closed.

The Arnold & Porter pro bono team was led by partner Rosa Evergreen and included associate Marjorie Carter.