Clifton Terrace Associates, Limited v. United Technologies Corporation

929 F.2d 714, 289 U.S. App. D.C. 121, 1991 U.S. App. LEXIS 5392, 1991 WL 45390
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 5, 1991
Docket90-7028
StatusPublished
Cited by67 cases

This text of 929 F.2d 714 (Clifton Terrace Associates, Limited v. United Technologies Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clifton Terrace Associates, Limited v. United Technologies Corporation, 929 F.2d 714, 289 U.S. App. D.C. 121, 1991 U.S. App. LEXIS 5392, 1991 WL 45390 (D.C. Cir. 1991).

Opinions

Opinion for the court filed by Circuit Judge BUCKLEY.

Concurring opinion filed by Circuit Judge HENDERSON.

BUCKLEY, Circuit Judge:

Clifton Terrace Associates, Ltd., the owner of Clifton Terrace Apartments, a federally subsidized low-income housing complex in the District of Columbia, appeals from an order of the district court dismissing its discrimination suit against Otis Elevator Company and Otis’s parent, United Technologies Corporation (collectively, “Otis”). Clifton Terrace Associates (“Clifton”) claims that Otis violated the Fair Housing Act, the Civil Rights Act of 1866 (sections 1981 and 1982), and the District of Columbia Human Rights Act by refusing to negotiate a contract to service the elevators in Clifton Terrace allegedly because the residents of the complex are poor, black, handicapped, or elderly. We conclude that Clifton has failed to allege a cognizable claim under the Fair Housing Act and lacks standing to sue Otis under sections 1981 and 1982. In the absence of these federal claims, the district court did not have proper jurisdiction to consider Clifton’s cause of action under the D.C. Human Rights Act. For these reasons, we affirm in part and vacate in part.

I. Background

Clifton is part of the Marshall Blackwell Group, an enterprise that owns and manages low- and moderate-income housing. It purchased Clifton Terrace Apartments in 1983. This five-story apartment complex is a federally subsidized housing project whose residents are virtually all black, many of them elderly or disabled. Otis installed six elevators in Clifton Terrace in 1971 and serviced them until 1980 when the previous owner of the apartments terminated the service contract and awarded it to another company. There has never been a service contract between Otis and Clifton.

When Clifton took over the apartments, the elevators required a thorough overhaul, and Clifton avers that it “presumed — and relied on the presumption — ” that Otis, as the manufacturer, would provide maintenance services. Complaint for Damages, Declaratory Judgment and Injunctive Relief H 12 (filed Apr. 14, 1989). In 1983 and 1984 the property manager at Clifton Terrace contacted Otis’s sales representative in an effort to get Otis to inspect the elevators and make a proposal for their maintenance. Otis did not do so, allegedly on the ground that its employees were afraid to work at Clifton Terrace and that it had had problems receiving payment for its services prior to 1980. In December 1987 and March 1988, Clifton’s division manager allegedly sent letters to Otis requesting service contract proposals, but again Otis did not respond.

Clifton claims that it could not obtain adequate elevator repair services from other companies. It claims that the other contractors it hired proved incapable of maintaining the elevators in safe working order “at a reasonable cost,” purportedly because they were “without sufficient access to necessary training, skills and parts.” Id. if 14. Clifton avers that Otis caused this problem through an alleged “quasi-monopoly of skilled and competent servicing of its own elevators,” effectively created “[b]y its control and pricing of replacement parts and repair manuals, its training practices, its express warranty [717]*717practices, and other business practices.” Id. II15.

On September 20, 1988, a principal of Clifton, George F. Marshall, telephoned Otis’s district service manager to request a proposal for the repair of the elevators. According to Clifton, Otis promised to provide an inspection and repair proposal within two weeks but failed to do so. Mr. Marshall states that although he discussed creditworthiness with Otis’s service manager on September 20, he had no reason to believe that Otis’s decision to submit a proposal was contingent on credit verification or anything else. Declaration of George F. Marshall, June 22, 1989, ¶ 13.

On December 6, 1988, the D.C. Elevator Supervisor ordered at least two of the Clifton Terrace elevators shut down because of disrepair and directed Clifton to make them operational. Having heard nothing further from Otis, Mr. Marshall sent a letter to a number of executives and other officials at Otis on December 16. In the letter, Mr. Marshall complained about Otis’s failure to follow through on its commitment and charged that the company had “redlined” Clifton Terrace because its residents were mostly poor and black. App. 22a.

Mr. Marshall further asserted that the question of credit was a “spurious” attempt to divert attention from Otis’s refusal to provide service; that by capitalizing on the widespread belief that maintenance by Otis personnel was required to “protect” the warranty on Otis elevators, Otis had engaged in an “unfair restraint of trade” inhibiting Clifton’s ability to obtain services from other elevator contractors; that the residents of Clifton Terrace had suffered substantial damages as a result of Otis’s refusal to maintain the elevators; and that, if necessary, Clifton would pursue legal action under the discrimination laws. Id. at 22a-24a. He added:

We do not wish a quote on the cost of repairing the elevators. To the contrary, we simply ask that they be repaired promptly so that the damages will at least not continue. When the elevators are operational, we can at that time discuss who owes who what.

Id. at 23a.

Finally, Mr. Marshall warned Otis about the risk of adverse publicity and high litigation costs:

Because of its history, Clifton is highly visible and is regularly and prominently featured in The Washington Post. The mayor of Washington’s ex-wife, who was involved with the property before its purchase by the present Owner, was sentenced to prison for actions related to Clifton Terrace. If the Owner is forced to go to court, there is a great possibility of adverse publicity as well as the expense of defense and the cost of award and/or settlement.

Id. at 24a.

In a December 23 letter from its associate counsel, Stephen B. Swigert, Otis responded to Mr. Marshall by stating that any decision to do business with Clifton would be based on the economics of the transaction and the terms and conditions of the contract, including adequate assurances that Otis would be paid for its work, that it would make a reasonable profit, and that its employees would have safe working conditions. Otis indicated that more extensive credit information was needed because of its past experience with Clifton Terrace. The letter added that Otis’s district service manager had requested such information but had not received it. Otis concluded by stating, “If you are interested in having Otis perform elevator work, please contact the undersigned.” Id. at 77a.

On January 4, 1989, Mr. Marshall called Mr. Swigert to ask how soon Otis could visit Clifton Terrace to inspect the elevators. Mr. Marshall insists that he made it clear in this conversation that Clifton was prepared to meet any reasonable conditions regarding financial and safety requirements, and he claims that Otis promised to arrange for an elevator inspection by January 9. See Marshall Deck ¶ 16.

On January 10, having received no communication from Otis, Mr. Marshall sent another letter. In it, he acknowledged that [718]*718Otis required assurances on safety and indemnification before repairing the elevators and that Mr. Swigert had agreed to prepare the proposed assurances for Clifton’s review.

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Bluebook (online)
929 F.2d 714, 289 U.S. App. D.C. 121, 1991 U.S. App. LEXIS 5392, 1991 WL 45390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clifton-terrace-associates-limited-v-united-technologies-corporation-cadc-1991.