COLUMBUS, Ohio — A federal judge in New Jersey has dismissed the bankruptcy claim made by the owners of Latitude Five25, an apartment complex on Columbus’ east side.
Latitude Five25, located on Sawyer Boulevard, was evacuated on Christmas Day when some pipes burst due to the freezing temperatures, causing electrical damage. The city condemned the complex after the buildings were found to be without potable water, heat and a working fire suppression system. Additionally, only one of four elevators were working.
The judge’s decision paves the way for a receivership group to take over and fix up the property and for former tenants to share a $1.5 million settlement, according to Columbus City Attorney Zach Klein’s office.
Klein’s office said in a release that all parties, including tenants and the city, are now able to pursue the full amount of the more than $4.3 million in contempt fines handed down by the Environmental Court last February.
Klein issued a statement on Wednesday saying:
“The Court’s dismissal of this bankruptcy claim is a significant win for tenants and the City. A receivership group can now come in to take control over the property. Former tenants will finally see relief. The City is now free to go after the owners to recover the costs incurred by the City due to their gross mismanagement and negligence.
“This decision checks all the boxes we set out for when we decided to track these owners all the way to New Jersey, and delivers on our top priority: to ensure tenants have a fair settlement that puts money back in their pockets and ensure this ownership group hands over their keys so that a responsible management group can come in and make necessary repairs and investments in the property.
“Today’s decision should send a message to any problem landlord in our City. If you don’t live up to your obligations as a landlord, we will use every legal tool we have to hold you accountable, whether here in Columbus or halfway across the country.”