Lackawanna County Courthouse, Scranton, Pennsylvania, USA. (Photo credit: Wikipedia)

A Lackawanna County judge issued a mixed ruling Tuesday in a lawsuit that challenges Scranton’s rental registration fee, finding that individual landlords cannot proceed as a class to recover excess fees they contend are illegal.

The decision by Judge Terrence Nealon does not end the case, however. He must still decide whether to certify the lawsuit as a class action relating to the underlying issue of the legality of the fees.

Adam Guiffrida, the owner of multiple rental properties, sued the city in May, alleging a 2014 increase in rental registration it enacted is illegal because the money generated will exceed the cost to run the program.

Mr. Guiffrida wants to certify the case as a class action, which would allow all landlords in the city to join in the case. Should the judge decide against class certification, the landlords would have to file individual lawsuits against the city.

The city filed a motion to dismiss the action seeking class certification, arguing state law does not allow a person seeking a refund of money owed to them by the government to transfer their claim to a class.

Judge Nealon on Tuesday granted the motion. The judge noted Mr. Guiffrida’s attorney, Paul Batyko, agreed with the city’s interpretation of the law and conceded that part of the lawsuit cannot proceed as a class action.

The judge denied the city’s motion to dismiss Mr. Guiffrida’s request to certify the landlords as a class relating to the underlying claim, however. He is scheduled to hear arguments regarding that matter today.

Should the judge rule in Mr. Guiffrida’s favor, the case would proceed as a class action, which means the legal ruling regarding the legality of the fees would apply to all landlords. If the fees are later found to be illegal, the landlords would have to individually seek refunds from the city, however.