Mill Creek Apartments tenants in Milpitas will be paid automatically from a $1 million settlement — but by default the money goes to a PayPal account tied to the email address Equity Residential has on file, and a payment nobody claims can end up in a California State Bar fund instead. Tenants who would rather have Venmo or a paper check have until December 14, 2026 to say so on the settlement website. No claim form is needed for anything else.
Status: Preliminary approval granted September 2026 | No claim form — payment is automatic | December 14, 2026: deadline to opt out, object or choose Venmo or a check | Final approval hearing June 30, 2027, 1:30 p.m.
The PayPal Default, Step by Step
Under the settlement, a tenant who does nothing is paid through PayPal at the email address Equity has on file. If that tenant has no PayPal account, PayPal sends an invitation to create one. Then:
- If the PayPal payment is not claimed within 60 days, it moves to Venmo.
- If it is not claimed on Venmo within another 60 days, the money goes to the California State Bar’s Greg E. Knoll Justice Gap Fund.
A tenant who has changed email addresses, never uses PayPal or simply wants a check can skip that chain by choosing Venmo or a paper check on the Mill Creek Apartment Settlement website by December 14, 2026. The election page asks for the CPT ID and Passcode printed on the emailed notice.
Three Payment Groups
The net fund is split among three groups, and a tenant who falls into more than one gets each group’s payment. The court’s preliminary approval order gives these estimates:
| Ordinance group | 99 tenants with a qualifying renewal event between March 4 and early May 2023 | About one month’s rent each, averaging about $2,877.27 |
| Notice group | 670 tenants who may not have received all required notices between March 4, 2021 and May 2, 2023 | $100 each |
| Restitution group | 362 tenants with a renewal notice by May 2, 2023 and a matching rent increase through June 22, 2026 | About $760.08 on average |
A tenant in all three groups is estimated to receive about $3,737.35 on average. These are estimates; final amounts depend on the fees and costs the court approves. Each tenant’s notice says which groups Equity’s records place them in, and the settlement agreement lets a class member challenge that allocation through the administrator.
Where the $1 Million Goes
About $627,000 is expected to reach tenants. The deductions are:
- Attorneys’ fees of up to one-third of the fund ($333,333).
- Up to $30,000 in litigation expenses.
- Up to $25,000 for settlement administration.
- A $15,000 service award to the tenant who brought the case.
None of the money goes back to Equity. Unclaimed funds go to the Justice Gap Fund.
What the Lawsuit Said
The case is Kachadoorian v. Equity Residential Management, L.L.C., et al., Case No. 25CV460326, in the Superior Court of California for Santa Clara County. It claims Equity and the on-site management at Mill Creek Apartments did not follow the Milpitas Rent Review Ordinance, including by not giving tenants required notices of their rights and not providing written explanations for rent increases above 5%. Equity denies doing anything wrong.
The parties settled after two mediation sessions in spring 2026 and signed the agreement on June 22, 2026. Beyond the money, the Mill Creek Apartments settlement requires Equity to state the reason for a rent increase in notices issued under the Milpitas ordinance, written in the same language or languages as the rest of the notice.
Who Is in the Class
The class is people who signed a lease with Equity at Mill Creek Apartments in Milpitas, California and either:
- received or responded to a rent renewal notice between March 4, 2021 and June 22, 2026, or
- had a rent increase take effect between March 4, 2021 and May 2, 2023.
The court order puts the class at 671 people. Notices went to tenants by email. Tenants who are not sure whether they are in the class can contact the administrator, CPT Group, Inc., through the settlement website.
Deadlines and Options
| December 14, 2026 | Last day to opt out, to object, or to choose Venmo or a paper check instead of PayPal |
| June 30, 2027, 1:30 p.m. | Final approval hearing, Department 19, Santa Clara County Superior Court |
There is no claim deadline because there is no claim. Tenants who are fine with PayPal do nothing. Opt-out instructions and the court documents are on the settlement website.
The court set the hearing date when it granted preliminary approval, and the notice says the date can change without further notice. Payments are made only if the court grants final approval, and no payment date has been announced. Our sister site has the full rundown on its Mill Creek Apartments settlement page.
Frequently Asked Questions
Do Mill Creek Apartments tenants need to file a claim?
No. Class members are paid automatically if the court grants final approval. The only optional step is choosing Venmo or a paper check instead of PayPal on the settlement website by December 14, 2026.
What happens if a tenant does not have a PayPal account?
PayPal emails an invitation to create one. If no account is created within 60 days, the payment moves to Venmo. If it is not claimed on Venmo within another 60 days, the money goes to the California State Bar’s Greg E. Knoll Justice Gap Fund.
How much will Mill Creek tenants receive?
It depends on the groups a tenant is in. The court order estimates about $2,877.27 on average for the Ordinance group, $100 each for the Notice group and about $760.08 on average for the Restitution group. A tenant in all three is estimated to get about $3,737.35 on average.
How do tenants know which payment group they are in?
Each emailed notice states whether Equity’s records place the tenant in the Ordinance, Notice and Restitution groups. The settlement agreement lets a class member challenge the allocation through the settlement administrator.
What do I need to choose Venmo or a check?
The CPT ID and Passcode printed on the notice. The election is made on the settlement website by December 14, 2026.
When will Mill Creek tenants be paid?
No payment date has been announced. The final approval hearing is set for June 30, 2027 at 1:30 p.m., and payments are made only if the court approves the settlement.
Sources
- Official settlement website, administered by CPT Group, Inc. — MillCreekApartmentSettlement.com.
- Class Notice, Preliminary Approval Order and Settlement Agreement, Kachadoorian v. Equity Residential Management, L.L.C., et al., Case No. 25CV460326, Superior Court of California, Santa Clara County.
- OpenClassActions.com — Mill Creek Apartments $1M Rent Settlement.
Source and credit: the settlement terms, deadlines and benefit details described above are drawn from our sister site’s reporting — OpenClassActions.com: Mill Creek Apartments $1M Rent Settlement: Milpitas Tenants Paid Automatically — which tracks this case against the court-approved notice and the official settlement website and is updated as the court rules.
Legal Disclaimer
This article is for informational purposes only and is not legal advice. OpenClassActions.org is a consumer news site, not a law firm and not the settlement administrator, and is not affiliated with any party to the case described. The allegations are allegations; unless a court has ruled, the defendants deny wrongdoing and no court has decided the merits. Deadlines, benefit amounts and payment timing can change as the court and the administrator act, so confirm current status on the official settlement website. You never need to pay anyone to file a claim or to receive a settlement payment.