Tennessee Real Estate Cos. Claim CSC ServiceWorks, Mac-Gray Imposed Unlawful Administrative Fees

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Four companies that own apartment complexes in Knoxville, Murfreesboro, and Franklin, Tennessee have banded together to file a proposed class action in which they allege defendants CSC ServiceWorks, Inc. and subsidiaries Mac-Gray Services, Inc. and Mac-Gray Services, LLC – which provide “residential and commercial laundry solutions” – breached their leases by deducting an extra 9.75 percent administrative fee not originally contained in the agreements between the parties. 

The plaintiffs argue that the defendants knew they could not unilaterally modify the terms of their leases, yet tacked on the administrative fee anyway thinking no one would challenge the revisions. The defendants’ goal in charging this extra fee, the case says, is to reduce their payments to the plaintiffs and proposed class members that are owed under their seven-year revenue-sharing agreements. 

Each section in the complaint documenting the plaintiffs’ alleged lease terms and experiences with the defendants notes a letter received from CSC advising the companies that, due to an increasing cost of doing business in general, it would be imposing a 9.75 fee from their gross collections.