Why Should Delaware Care?
The Delaware Department of Justice came to a $150,000 settlement with Adolph Jay Pokorny, who Attorney General Kathy Jennings called “one of Wilmington’s most problematic landlords.” In 30 months, Pokorny will be barred from Delaware’s rental industry setting a new precedent for landlord malfeasance.
Attorney General Kathy Jennings and the Delaware Department of Justice’s Consumer Protection Unit announced settlement terms Wednesday against Adolph Jay “A.J.” Pokorny, a Wilmington landlord whose properties were condemned in 2022, leaving dozens of people homeless.
The $150,000 settlement exiles Pokorny from operating as a landlord in Delaware by a setting a 30-month deadline by when he must sell all of his rental properties in the state.
As part of the settlement, affected former tenants are entitled to $5,000 each, Jennings said. An additional $600,000 fine looms over Pokorny should he violate any terms of the settlement agreement, all of which would be entered into the Delaware Consumer Protection Fund.
The settlement, which Jennings said other landlords are taking note of, adds a new tool to the DOJ’s belt for claims of landlord negligence.
“No one in Delaware should have to live in fear of their home becoming a hazard to their health and safety,” Jennings said. “We should not tolerate it as state officials, we cannot tolerate it in our neighborhoods and we do not tolerate it in the Department of Justice.”
What happened?
Pokorny, who Jennings called “one of Wilmington’s most problematic landlords,” worked in the rental industry for nearly 50 years.
But in May 2022, properties owned by Pokorny on North Adams Street in Wilmington were condemned after one building’s walls collapsed.
Authorities at the time found the rest of the properties to be “so profoundly ill-kept,” that they were all shut down. This left 25 people homeless, according to the Delaware Court of Chancery complaint.
When tenants asked if he’d be able to provide money or a place to stay, he allegedly “said he would check his pockets, patted them and then laughed,” the complaint said.
The suit against Pokorny paints a picture of a landlord who chronically neglected to maintain his properties, often ignoring concerns of residents.
In 2002, the state issued an order against Pokorny following violations of the Delaware Landlord Tenant Code and the Consumer Fraud Act, which he appealed. It would eventually end in a settlement, where Pokorny agreed to a litany of terms to protect the wellbeing of the units and its residents.
What’s next?
The settlement is pending approval in Delaware’s Court of Chancery.
If approved, Pokorny is required to sell his properties within one year, and if he does not then he must hire an independent management company to operate the units between then and the 30-month deadline.
Failure to sell the units would constitute a breach of the settlement, and trigger the additional $600,000 penalty.
At a press conference announcing the settlement Wednesday, Jennings that money would go back to the DOJ’s Consumer Protection Fund, should it actually be collected.
But one question lingered, what’s to stop Pokorny from working as a landlord in the future?
Delaware is full of limited liability companies (LLCs) that are difficult to trace back to their rightful operators. When asked about how the DOJ would enforce Pokorny’s exile from the rental industry, Jennings replied that “very good lawyers in our office” would ensure it.
In a press release following the conference, Wilmington Mayor Mike Purzycki applauded the settlement.
“It is only fitting that the person responsible for this tragedy should lose the ability to cause more heartbreak and despair,” the statement said.
Having trouble with a landlord?
Read the state’s Landlord Tenant Code and reach out to the Department of Justice’s Consumer Protection Unit.
