Sec. 42-424. Private remedies.
Sec. 42-424. Private remedies. (a) In sections 42-424 to 42-431, inclusive, with
respect to violations of sections 42-405 and 42-422, "lessee" includes a guarantor.
(b) A holder that violates sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, is liable to the lessee for actual damages. Where actual damages are
claimed as a result of an alleged violation of a disclosure requirement under sections
42-270 to 42-271a, inclusive, and 42-390 to 42-434, inclusive, the lessee must show
reliance on the holder's conduct to the lessee's detriment as a necessary element to
recovering the damages.
(c) Whether or not a lessee seeks or is entitled to damages, the lessee may maintain
an action for declaratory or injunctive relief.
(d) Except in a class action, and except as otherwise provided in sections 42-424
to 42-431, inclusive, in addition to actual damages under subsection (b) of this section,
a holder who violates sections 42-270 to 42-271a, inclusive, and 42-390 to 42-434,
inclusive, is liable for statutory damages of twenty-five per cent of the amount of payments scheduled under the lease, but no less than five hundred dollars and no more than
one thousand dollars for a violation of any of the following provisions: Subsection (a)
or (b) of section 42-403, subdivision (1), (2), (4) or (5) of subsection (c) of section
42-403, subsection (d) of section 42-403, section 42-404, section 42-406 or 42-407,
subsection (d) of section 42-409, subsection (b) of section 42-410, subsection (c) of
section 42-414, section 42-415 or 42-422 or subsection (c) of section 42-423.
(e) In a successful action under sections 42-424 to 42-431, inclusive, a lessee is also
entitled to the costs of the action and, except as otherwise provided in subsection (f) of
this section, reasonable attorney's fees as determined by the court. In determining the
award of attorney's fees, the amount of the lessee's recovery is not controlling.
(f) In order for a lessee as plaintiff in an action for monetary damages to recover
attorney's fees under subsection (e) of this section, the following rules apply:
(1) Before the commencement of the action, the lessee must send the holder notice
in a record of the alleged violation and the damages sought.
(2) If, within twenty days after the lessee's notification is sent, the holder provides
the lessee with an offer of settlement in a record agreeing to pay the lessee an amount
that equals or exceeds the damages eventually awarded to the lessee in the final judgment
entered in the action, the lessee may not recover attorney's fees incurred after the lessee's
receipt of the settlement offer. The lessee may nevertheless recover attorney's fees incurred before the receipt of the settlement offer in an amount determined by the court
based on a reasonable hourly rate.
(3) Notification by the lessee under subdivision (1) of this subsection tolls the statute
of limitations for a period of sixty days after the date the notification is sent.
(P.A. 02-81, S. 35.)
History: P.A. 02-81 effective July 1, 2003.