Lawsuit Claims Coin-Op Laundry Co. CSC ServiceWorks Owes Landlords Unpaid Revenue Shares

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Kay-Kay Realty Corp. has filed a proposed class action against CSC ServiceWorks, Inc. in which it claims the defendant, one of the largest coin-operated laundry companies in the country, has “systematically shortchanged” building owners on contracted revenue shares. The 12-page complaint alleges that after CSC scooped up its competitors and their existing customer contracts, the company outright disregarded the agreed-upon terms of those contracts and imposed an extracurricular 9.75 percent “administrative fee,” a move the complaint says CSC pulled off due simply to the absence of any competition. 

“As described above,” the complaint reads, “CSC began a campaign to eliminate competitors and consolidate market share. Once consolidated, and knowing that landlords lacked any alternative service providers, CSC began breaching its contracts with landlords by collecting a 9.75% administrative fee not provided for under its contracts.”

The lawsuit says that CSC claims more than half of the administrative fees it charges go toward covering its own costs related to billing and refund processing, website maintenance and check processing. The plaintiff company, however, argues CSC is not authorized to wield such charges in the first place.

“While CSC claims that the administrative fee covers necessary costs related to its operation and features new products and services that benefit landlords,” the lawsuit reads, “it is nothing more than an attempt to withhold contractually guaranteed revenue from landlords.”