East Lake Management Lawsuit: Lead Paint, Irvin & Nutmeg

An East Lake Management lawsuit search turns up several distinct matters: a $24 million lead paint verdict against the Chicago Housing Authority in which East Lake was named as a defendant but cleared by the jury, a 1990 Illinois appellate ruling that went against the company in a Section 8 eviction, and a tenant class action over security deposits and habitability at a South Shore Drive building that settled for $439,625 and triggered a separate insurance coverage fight. Outside court, tenants at several East Lake-managed properties have organized a union and filed public complaints about conditions.

The CHA Lead Paint Verdict

The most prominent recent case is Jordan v. Chicago Housing Authority. In January 2022, Shanna Jordan and Morgan Collins sued on behalf of their children, Jah’mir Collins and Amiah McGee-Collins, alleging the children suffered severe lead poisoning while living at a CHA-owned building at 7715 North Marshfield Avenue in Rogers Park. The plaintiffs argued the CHA had known about lead-based paint hazards at the property since at least 1992 but gave tenants false disclosures claiming no knowledge of the problem.1Rapoport Law. Jordan v. Chicago Housing Authority Case Summary

East Lake Management Group managed the building from 2019 to 2022, following The Habitat Company, which managed it from 2016 to 2019. Both companies were named as defendants alongside the CHA.2CBS News Chicago. CHA Lawsuit Verdict Lead Paint Poisoning Children After a six-week trial, a Cook County jury returned a unanimous $24,141,000 verdict on January 15, 2025, awarding $20.6 million to Amiah McGee-Collins and $3.5 million to Jah’mir Collins.3Fox 32 Chicago. Chicago Children Lead Poisoning CHA Housing Verdict The jury found that neither Habitat nor East Lake was liable, placing responsibility entirely on the CHA as the property owner.4Chicago Tribune. CHA Lead Paint Trial Verdict A fourth defendant, Environmental Design International, which had conducted a 2017 inspection confirming lead at the property, settled with the plaintiffs in 2024 for $150,000 combined.

So while East Lake’s name appears throughout the court file and press coverage, the jury did not find the management company responsible for the children’s injuries.

Section 8 Eviction: East Lake Management & Development Corp. v. Irvin

East Lake’s reported case law goes back to 1990. In East Lake Management & Development Corp. v. Irvin, the company tried to evict tenant Loudell Irvin from a Section 8 apartment at 4048 South Lake Park Avenue, citing lease violations that included property damage and disturbing neighbors. East Lake served a termination notice in August 1987 but kept receiving HUD Housing Assistance Payments for the unit afterward. The trial court ruled that accepting those federal payments amounted to accepting rent, which waived the termination notice and defeated the eviction.5vLex. East Lake Management and Development Corp. v. Irvin, 551 N.E.2d 272

The Hale Class Action and Nutmeg Insurance Dispute

A tenant class action titled Hale v. East Lake Management & Development Corp. alleged that East Lake violated the Chicago Residential Landlord and Tenant Ordinance at 7000 South Shore Drive. According to the complaint, the company failed to pay interest on security deposits, failed to give proper notice during management transfers, and failed to maintain habitable conditions. The case settled for $439,625.

That settlement produced a second lawsuit. East Lake’s professional liability insurer, Nutmeg Insurance Company, went to federal court seeking a declaration that its policy did not cover the payout. In November 2006, a judge in the Northern District of Illinois ruled that the policy’s definition of “Damages” was ambiguous and had to be construed in East Lake’s favor, ordering Nutmeg to pay $408,000 of the settlement.6GovInfo. Nutmeg Insurance Co. v. East Lake Management, Case No. 05 C 1328

Tenant Complaints and Organizing

Beyond the court docket, East Lake has faced sustained criticism from residents of properties it manages. Tenants formed the East Lake Tenants Union to press for better conditions and to urge the city and federal government to stop contracting with the company.7Chicago Sun-Times. Chicago Housing Tenants Buildings East Lake Management Security Crime

In October 2022, the union rallied outside City Hall. Residents at Germano Millgate Apartments on South Burley Avenue reported pest infestations and a five-month wait for bathroom repairs caused by water damage. Residents at the Washington Park SRO at 5000 South Indiana Avenue cited missing building-entry security and maintenance backlogs. Tenants also accused East Lake’s security guards of failing to patrol or contact police during violent incidents near the buildings.7Chicago Sun-Times. Chicago Housing Tenants Buildings East Lake Management Security Crime

The 63-unit Washington Park SRO drew particular attention. South Side Weekly reported that unit doors lacked peepholes required by the Illinois peephole installation act and that residents had no independent access to the building, which organizers described as a fire hazard and a code violation.8South Side Weekly. Tenant Union Demands Change at Washington Park SRO Other complaints included noise from an on-site gym tenants could not use, a restrictive overnight guest policy, and the discontinuation of social services and amenities originally part of the building’s offerings.9Hyde Park Herald. East Lake Tenants Union Organizer Showtime Shanna on the Work for Safe Housing The building received $874,378 in low-income housing tax credits from the City of Chicago in 2006, intended to leverage $9.2 million in equity for the property.

A separate Change.org petition titled “Why is HUD still doing business with Eastlake Mgmt?” gathered 290 signatures from residents of Archer Courts Apartments. It alleged fake repairs, lack of heat in parts of the building, holes in walls, plumbing failures, and pest problems, and accused the company of overcharging for security services through a subcontractor.10Change.org. Why Is HUD Still Doing Business With Eastlake Mgmt

East Lake has consistently responded to such complaints by stating that it “takes the safety, comfort, and well-being of our residents very seriously” and that “our residents are our number one priority.”7Chicago Sun-Times. Chicago Housing Tenants Buildings East Lake Management Security Crime None of these tenant complaints has been reported as a resolved court judgment against the company.

Who East Lake Management Is

East Lake Management was founded by Elzie Higginbottom and is headquartered at 2850 South Michigan Avenue in Chicago.11East Lake Management. Contact The company says it manages more than 10,000 residential units and over 30 commercial properties in the Chicago area, Missouri, Indiana, and other parts of Illinois.12East Lake Management. About Much of its residential portfolio sits inside the CHA system, which contracts private firms to manage roughly 13,000 public housing units.13WTTW News. Chicago Housing Authority Leaseholders Accuse Management Companies of Retaliation That contracting relationship is why East Lake’s name appears alongside the CHA in cases like Jordan, even where the jury assigned the company no liability.