Akbar v. Interstate Realty Management Company

CourtDistrict Court, N.D. Illinois
DecidedOctober 26, 2018
Docket1:17-cv-05447
StatusUnknown

This text of Akbar v. Interstate Realty Management Company (Akbar v. Interstate Realty Management Company) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akbar v. Interstate Realty Management Company, (N.D. Ill. 2018).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

JAMAL A. AKBAR, ) ) Plaintiff, ) ) v. ) Case No. 17-cv-5447 ) SAVOY SQUARES, ) Honorable Edmond E. Chang ) Defendant. )

MOTION TO VACATE DEFAULT JUDGMENT

Defendants Interstate Realty Management Company, a New Jersey corporation, incorrectly named herein as Savoy Squares (“Interstate”), and Legends A-2, LLC, an Illinois limited liability company, incorrectly named herein as Savoy Squares (“Legends”)(Interstate and Legends are collectively referred to as the “Defendants”), by and through their counsel of record, for their motion to vacate a default judgment entered on October 10, 2018 in favor of Plaintiff Jamal A. Akbar (“Akbar”) in this matter, 1 state as follows: INTRODUCTION On October 17, 2018, Defendants learned for the very first time that this matter existed and had been filed by Akbar against an entity named “Savoy Squares.” Upon immediate investigation, Defendants ascertained that on October 10, 2018, the court entered a $15,000 default judgment in favor of Akbar and against “Savoy Square Apartments” (the “Default Judgment”). Neither Savoy Squares nor Savoy Square Apartments are actual entities. Neither Savoy Squares nor Savoy Square Apartments are assumed names for any entity, including for either of Defendants. On October 19, 2018, a mere two days after they learned about the Default

1 Both Defendants have filed this Motion because it is unclear which entity Akbar was attempting to name in the Complaint. Judgment, Defendants retained counsel in this matter to investigate how the Default Judgment was entered and to attempt to vacate the Default Judgment. Counsel immediately began its review of this matter and its investigation into the circumstances giving rise to the entry of the Default Judgment. The timely investigation revealed that “Savoy Square Apartments” was served with the

amended complaint (the “Complaint”) on June 13, 2018 through Dominique Beck (“Beck”). At the time of service, Beck was a temporary receptionist/secretary employed by Interstate. Beck did not tender the Complaint to Bianca Walker (“Walker”), the regional supervisor for Defendants, as she should have done at this time, nor did Beck tell her that she was served with the Complaint. Beck’s temporary employment at Interstate ended in August 2018 without Beck ever communicating to Walker that she had received the Complaint or any documents related to this lawsuit. In turn, Walker did not inform Defendants about this matter because she did not know about the lawsuit. Defendants have now reviewed the Complaint and, as demonstrated below, Defendants clearly have meritorious, dispositive defenses to the allegations in the

Complaint. Defendants have also filed this Motion a mere nine (9) days after learning of the entry of the Default Judgment and counsel has filed this Motion a week after being retained. For the foregoing reasons and as fully set forth in this Motion, Defendants have established that the Default Judgment should be vacated pursuant to Rule 60(b)(1). BACKGROUND Defendants provide the following background section in order to demonstrate Defendants’ timely and meritorious defense of the parallel complaint filed by Akbar with the Chicago Commission on Human Relations. As set forth in this Motion, it certainly would not make any sense for Defendants to doggedly defend and ultimately prevail against Akbar’s

2 administrative complaint (that they knew about) only to then willfully ignore Akbar’s Federal Complaint (that they did not know about). A. Interstate Rejects Akbar’s Application for Low-Income Housing On February 17, 2016, Akbar applied for a one-bedroom, low-income apartment at the Savoy Square—Legends South Apartments located at 4448 South State Street, Chicago, Illinois

(the “Savoy Square”). Akbar’s application (the “Application”) is attached as Exhibit 1. At all relevant times, Interstate has managed Savoy Square for Legends, including the processing of applications for low-income housing at Savoy Square. Akbar applied for the apartment through the Low Income Housing Tax Credit Program. Pursuant to the Admissions and Continued Occupancy Policy governing the Low Income Housing Tax Credit Program, Akbar was not eligible for the apartment unless he could show that either: (1) he had $25,776- $31,920 in yearly income (three times the annual rent); or (2) he received public housing assistance or vouchers to supplement his income (the “Minimum Income Requirement”). Akbar indicated that his monthly income was $731 ($8,772/year), which he received

from disability payments. Akbar did not indicate that he received any public housing rental assistance such as through the Chicago Housing Authority (CHA) Housing Choice Voucher program. Consequently, Akbar’s application was rejected on March 23, 2016 because he could not meet the Minimum Income Requirement of the Admissions and Continued Occupancy Policy. To be clear: according to the Application, the rent for the unit Akbar applied for was $716 per month, which would have left Akbar with $15/month for his other living expenses after he paid rent from his $731/month income from his disability benefits. Akbar appealed the rejection. After providing notice to Akbar, an appeal hearing was held on April 7, 2016. Akbar failed to attend the hearing; as a result, the rejection was upheld.

3 B. Akbar Files a Complaint With the Chicago Commission on Human Relations On May 27, 2016, Akbar filed a complaint alleging housing discrimination with the Chicago Commission on Human Relations (“CCHR”), Case No. 16-H-18 (the “CCHR Complaint”). A copy of the CCHR Complaint is attached as Exhibit 2. Akbar alleged in the CCHR Complaint that he was discriminated against based on his income and disability.

On July 15, 2016, Defendants’ counsel, Grant Law, LLC (“Grant Law”), filed its appearance in the CCHR proceeding. On July 21, 2016, Grant Law filed Defendants’ Verified Response to the CCHR Complaint and Position Statement and Supporting Documents. Copies of Defendants’ relevant responsive pleadings in the CCHR proceeding are attached as Exhibit 3. On March 6, 2018 CCHR dismissed the CCHR Complaint for lack of evidence. Copies of the dismissal order and investigation summary are attached as Exhibits 4 and 5. CCHR found absolutely no evidence of discrimination based on disability or source of income as Defendants were able to identify more than 20 other residents at Savoy Square that received disability benefits. (Investigation Summary, p. 2). CCHR found that the Minimum Income Requirement

in no way evidenced discrimination as Akbar did not meet the minimum threshold even after taking his disability benefits into account as income. See Robert Taylor Homes Phase A-1, Admissions and Continued Occupancy Policy, § 3.1 (attached to Respondent’s Statement of Position to the CCHR Complaint as Exhibit C (the “ACOP”)). Ultimately, as more fully explained in the decision, the death knell for Akbar's claim was CCHR’s finding that: The Commission has long held that, as a business necessity, a property owner or manager has a right to ensure that a rental applicant can afford the rent and support himself in the apartment. The Commission has also consistently held that in most cases, it is reasonable for a property owner to require that a rental applicant’s income be at least three times the monthly rent. The Commission makes no determination as to any allegations involving laws apart from CFHO.

Accordingly, the Commission finds no substantial evidence of housing discrimination 4 based on sources of income or disability.

(Id., p. 5). On March 20, 2018, Akbar filed a request for review of the dismissal of his CCHR Complaint. The request for review is still pending at CCHR. C.

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Akbar v. Interstate Realty Management Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akbar-v-interstate-realty-management-company-ilnd-2018.