Court Affirms LA County Can Be Sued for Elder Abuse in PACE Program that Swindled a Family
LOS ANGELES, CA — Ruling in favor of a 79-year-old woman who had an illegal and unfair lien put against her home through the Los Angeles County Property Assessed Clean Energy (PACE) program, the California Court of Appeal held the County could be held liable for the fraudulent activities of contractors in implementing the program. The case was handled by Neighborhood Legal Services of Los Angeles County (NLSLA) and Western Center on Law & Poverty (WCLP).
In 2015, plaintiff Alma Foster was quoted what was sold to her as a $7,500 roof repair but ended up as a $100,000 debt added to her property taxes. However, the County’s contractor had forged her signature on the assessment contract which included a tax lien on her home. Faced with crippling debt and the prospect of losing the only home she knew, she began a years-long advocacy effort, her home teetering on the brink of foreclosure.
Case Background
Ms. Foster pleaded with the County to void the fraudulent contract, explaining that she would literally be left homeless if they continued to enforce it, but the County refused. Left with no other choice, Ms. Foster sued the County and its registered PACE home improvement contractors—the contractors for forging her signature on the contracts and defrauding her, and the County for creating and failing to oversee a program that had no protections in place for consumers like herself, who were plainly preyed upon.
While Ms. Foster settled with the contractors, her case against the County was blocked when the trial court judge held that the County was immune from suit. In a notable ruling, the Court of Appeal recently reversed this decision, finding that since Ms. Foster’s signature on the finance contract was forged, and the County could be held responsible for the harms she suffered.
“The power of this case is holding the government accountable for their programs, how they’re managed, and who they hire to directly implement the program,” said Western Center Staff Attorney Danny Sternberg. “They can’t just point a finger and say ‘We’re not responsible’ for any illegal activities under the guise of our program.”
“When the County created this program, it purported to act like a finance lender without following industry practices, engaging in adequate underwriting, or implementing common sense consumer protections, and then left defrauded homeowners to pick up the pieces,” said NLSLA Director of Litigation Andrés Rapoport.“ This ruling sends a strong message that local governments cannot simply create programs, look the other way as they are recklessly implemented, and then disclaim responsibility when vulnerable residents are harmed.
Government entities need to be held to account if they cause their constituents harm, particularly elderly homeowners like Ms. Foster.”
“Simply because it was the hired contractor conducting the business fraudulently, doesn’t allow government entities off the hook,” added Sternberg. “Western Center is proud to have helped Ms. Foster and in the process all other families who should be treated fairly and in accordance with the law.”
The lawsuit is now back in the trial court where Ms. Foster will ask a jury of her peers to hold the County liable for the years she has suffered as a result of their misconduct.
About Western Center on Law and Poverty
Western Center on Law & Poverty is California’s premier nonprofit public interest social justice law organization. Founded in 1967, we provide comprehensive advocacy and legal services to prevent poverty, redress systemic racism, and foster policies ensuring equitable healthcare, affordable housing, and fair access to public programs. Through litigation and policy advocacy in and beyond California, we advance racial and economic justice—dismantling and transforming systems so all communities in California can thrive.
Neighborhood Legal Services of Los Angeles County
NLSLA provides free assistance to nearly 175,000 individuals and families each year through innovative projects that expand access to justice and address the most critical needs of people living in poverty throughout Los Angeles. Through a combination of direct representation, policy advocacy and impact litigation, NLSLA attorneys work to reduce the effects of poverty in Los Angeles’ low-income communities, support the development of opportunities for individuals and families to move themselves out of poverty, and protect and enforce the legal rights of poor people by ensuring access to our justice system.
