U.S. Department
of Justice
Housing and Civil Enforcement Cases
United States v. Isle of Paradise “B”, “C”, and “E”, Inc. (S.D. Fla.)
On January 8, 2024, the court entered consent decrees resolving the Department’s claims against each of the three defendants in United States v. Isle of Paradise "B", Inc., Isle of Paradise "C", Inc., and Isle of Paradise "E", Inc. (S.D. Fla.). The complaint in this Fair Housing Act pattern or practice lawsuit, which was filed on November 30, 2023, alleges that the defendants—nonprofit cooperative corporations that each own a residential building on an island known as Isle of Paradise in Hallandale Beach, Florida—discriminated on the basis of familial status in violation of the Fair Housing Act (FHA) by maintaining and/or enforcing a no-children-under-12 policy. The consent decrees require defendants to remove their no-children-under-12 policy (except that one defendant, Isle of Paradise “C”, Inc., can instead show that it is exempt as housing for older persons); to undergo other standard injunctive relief; and to pay a total of $52,000 in monetary relief, composed of $20,000 in damages to a mother and son who were turned away and $6,000 to their real estate agent, $13,000 in settlement funds, and $13,000 in civil penalties.
Hannah Magee Portee - Mike Morath (W.D. Tex.)
On November 20, 2023, the court granted the plaintiff’s motion for judgment on the pleadings and entered a final judgment in favor of the plaintiff in Portee v. Morath et al. in the Western District of Texas. This is the first case brought nationwide under a new Servicemembers Civil Relief Act’s (SCRA) provision that guarantees the portability of certain professional licenses held by U.S. servicemembers and their spouses when they relocate pursuant to military orders. In its order, the court held that Texas state licensing authorities violated the SCRA by refusing to recognize plaintiff’s out-of-state licenses because she had not used them continuously for the two years preceding her relocation to Texas. The judgment followed the court’s July 21, 2023 order granting the plaintiff’s motion for a preliminary injunction. The United States had filed a Statement of Interest on July 13, 2023, arguing that plaintiff was likely to succeed on the merits of her claim that her school counseling licenses are covered under the new provision, vigorous enforcement of the provision serves the public’s exceptionally strong interest in national defense and military readiness, and plaintiff had standing to bring her case.
St. Timothy’s Episcopal Church et al. v. City of Brookings (D.Or.)
On March 27, 2024, the court granted plaintiffs’ motion for summary judgment and denied the City’s motions for summary judgment and to dismiss. Consistent with the United States’ arguments in its Statement of Interest, the court held that the City violated the Religious Land Use and Institutionalized Persons Act by imposing a substantial burden on plaintiffs’ religious exercise when it enacted an ordinance that limited the number of days on which a church was permitted to serve free meals to persons experiencing homelessness or in need. The court further found that the City lacked a compelling governmental interest to justify these restrictions. The court concluded, “The homeless are not ‘vagrants,’ but are citizens in need. This is a time for collaboration, not ill-conceived ordinances that restrict care and resources for vulnerable people in our communities.”
Press Release (11/17/2023)
United States v. Wheeler (D. Me.)
On December 29, 2023, the United States filed an amended pattern or practice complaint in United States v. Wheeler (D. Me). The complaint, which was originally filed on November 16, 2023, alleges that Defendant Fred Wheeler discriminated on the basis of sex in violation of the Fair Housing Act (FHA) by sexually harassing numerous female tenants and prospective tenants in properties that Wheeler owned and managed in central Maine. The complaint also names as a defendant Landscape Center of Maine, Inc., through which Wheeler managed his properties.
Statement of Interest in Trujillo v. Amity Plaza LLC (D. Colo.)
On January 31, 2024, the court issued an order denying the defendant housing providers’ motion to dismiss the plaintiff’s Fair Housing Act (FHA) claims in Trujillo v. Amity Plaza LLC (D. Colo.). The complaint in the case alleges that the plaintiff was sexually harassed and assaulted by a maintenance worker employed by her housing providers, Amity Plaza, LLC and the Housing Authority of the City of Littleton, Colorado. On November 15, 2023, the United States filed a Statement of Interest, explaining the well-established principle that Section 3604(b) of the FHA prohibits post-acquisition sexual harassment and is not limited only to conduct during the process of acquiring or renting property, arguing that a state statute cannot immunize a public housing authority from a federal FHA claim, and addressing the proper standard for holding a defendant vicariously liable under the FHA. In the court’s opinion, it agreed that Section 3604(b) can reach post-acquisition sexual harassment, that the housing authority was not immunized from federal FHA claims by a state statute, and that vicarious liability could apply to hold the housing providers liable for the harasser’s actions.
United States v. Todisco Services, Inc. d/b/a Todisco Towing (D. Mass.)
On December 8, 2023, the court entered a consent order in United States v. Todisco Services, Inc. d/b/a Todisco Towing (D. Mass.). The complaint, which was filed by the United States Attorney’s Office on November 13, 2023, alleges that the defendant, a towing company based in Salem, Massachusetts, violated the Servicemembers Civil Relief Act (SCRA) by illegally auctioning off a vehicle belonging to a U.S. Air Force Staff Sergeant who was deployed to Qatar. The consent order requires the defendant to adopt new policies, implement new training requirements, pay $5,000 in compensation to the servicemember, and pay a $1,000 civil penalty to the U.S. Treasury.
United States v. City of Chattanooga (E.D. Tenn.)
On December 8, 2023, the Court entered a Consent Decree in United States v. City of Chattanooga (E.D. Tenn.). The Division filed a complaint in this case on November 6, 2023, alleging that the defendant discriminated on the basis of disability and violated the Fair Housing Act and the Americans with Disabilities Act by refusing to allow four people with disabilities to reside in a four-bedroom home together under the same terms and conditions as residents without disabilities. This case arose out of a HUD complaint filed by Quality Lifestyle Service, Inc., a non-profit corporation that supports independent housing for persons with mental disabilities in the City. The Consent Decree includes an injunction prohibiting future acts of discrimination; requires the City to pay $32,600 in monetary relief to Quality Lifestyle Service and a civil penalty of $5,000; and requires the City to implement revisions to its zoning code, conduct training, and provide compliance reports to the Division. The case was referred to the Division after the U.S. Department of Housing and Urban Development received Quality Lifestyle’s complaint and conducted an investigation.