Clifton Terrace Associates, Ltd. v. United Technologies Corp.

728 F. Supp. 24, 1990 U.S. Dist. LEXIS 322, 1990 WL 1538
CourtDistrict Court, District of Columbia
DecidedJanuary 10, 1990
DocketCiv. A. 89-1030-OG
StatusPublished
Cited by8 cases

This text of 728 F. Supp. 24 (Clifton Terrace Associates, Ltd. v. United Technologies Corp.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clifton Terrace Associates, Ltd. v. United Technologies Corp., 728 F. Supp. 24, 1990 U.S. Dist. LEXIS 322, 1990 WL 1538 (D.D.C. 1990).

Opinion

MEMORANDUM

GASCH, District Judge.

This is an action brought by the owner of an apartment complex against the Otis Elevator Company, alleging that the latter’s refusal to repair the elevators in the complex amounts to unlawful discrimination. Before the Court is defendant Otis Elevator’s motion to dismiss the complaint for failure to state a claim or, in the alternative, for summary judgment. Upon consideration of defendant’s motion, plaintiff’s opposition thereto, and the arguments of counsel in open Court, the Court concludes that defendant’s motion is properly granted. Accordingly, the Court dismisses plaintiff’s complaint. 1

*26 I. BACKGROUND

Plaintiff is the owner of Clifton Terrace Apartments (“Clifton Terrace”), a housing complex located in the predominantly minority neighborhood of Columbia Heights in the District of Columbia. Plaintiff alleges that Otis Elevator (“Otis”) refuses to repair or maintain the elevators in Clifton Terrace because the residents therein are primarily black, handicapped, or elderly. Plaintiff claims that this refusal to deal constitutes unlawful discrimination in violation of federal and state laws and seeks declaratory and injunctive relief that would require Otis immediately to repair and thereafter to service the elevators at Clifton Terrace. Plaintiff also seeks compensatory, punitive, and treble damages, although in no specified amounts.

The key facts are largely undisputed. In November, 1971, Otis installed six elevators in the five-story Clifton Terrace complex. Under contract, Otis serviced these elevators from 1971 until 1980. On July 23, 1980, Otis was notified by letter from the previous owner of Clifton Terrace, Hunneman Investment Management Corporation, that this maintenance contract would be terminated effective August 23, 1980. Otis was advised that the contract was awarded to another company as of September 1, 1980. There is no contract between the parties to the instant dispute.

Plaintiff Clifton Terrace Associates, Ltd. (“Clifton Associates”) is a private partnership that purchased Clifton Terrace from the Department of Housing and Urban Development (“HUD”) in 1983. Plaintiff admits that elevator service has been intermittent since that time, claiming that companies other than Otis have “proven incapable of keeping the elevators at Clifton Terrace operational and safe, at a reasonable cost.” Complaint at 1114. Plaintiff alleges that when it purchased Clifton Terrace in 1983 it “presumed — and relied on the presumption — that United/Otis’ maintenance services would be available” for the elevators in the complex. Id. at ¶ 12. Plaintiff alleges that its employees “repeatedly requested” a bid from defendants to provide elevator repairs, but defendants never responded. Id. at II16. Defendants’ company records reflect no contact between Clifton Terrace and Otis representatives from the time of the contract’s cancellation in 1980 until September 20, 1988.

On September 20,1988, George Marshall, a principal of Clifton Associates, telephoned Paul Ammermuller, Otis’s District Service Manager for the Washington District. According to plaintiff, Mr. Ammer-muller “promised to provide an inspection and repair proposal within two weeks,” but did neither. Complaint at ¶ 17. According to defendants, Mr. Ammermuller advised Mr. Marshall that plaintiff would first need to furnish written credit references and other information, which Otis never received. Having received nothing, Mr. Am-mermuller assumed that Mr. Marshall was no longer interested in contracting with Otis. Defendant Otis Elevator’s Statement of Material Facts (hereinafter “Otis’s SMF”), at HU 5-8.

On December 6, 1988, the Elevator Supervisor for the District of Columbia informed plaintiff that the elevators in at least one Clifton Terrace complex were hereby “sealed out of service” due to disrepair. Defendant’s Motion to Dismiss, Exhibit 2. Ten days later, on December 16, 1988, Mr. Marshall wrote a letter to Otis and sent copies of the letter to five Otis/United Technologies executives. Complaint at ¶ 18; Complaint, Exhibit A. The letter accused Mr. Ammermuller of reneging on his promise to provide an inspection and repair proposal. It further stated, in relevant part:

We believe Otis has “redlined” Clifton Terrace and is violating the law by intentionally refusing to maintain the elevators because the residents are mostly poor and black.
Otis’s refusal to maintain the elevators has greatly damaged the residents and owner of Clifton Terrace. We cannot now quantify the damages to the elderly and handicapped, but they are substantial.
We do not wish a quote on the cost of repairing the elevators. To the contrary, we simply ask that they be repaired *27 promptly so that the damages will at least not continue. When the elevators are operational, we can at that time discuss who owes what.
We regret the necessity, but we fully intend to pursue any legal options if repairs are not commenced by December 21 and completed shortly thereafter.

The letter further explained that plaintiff would consider joining United Technologies in any lawsuit. Finally, the letter advised:

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.

A copy of this letter was also sent to the Elevator Supervisor for the District of Columbia in response to his prior inspection report. Attached thereto was a cover letter from Mr. Marshall, also dated December 16, 1988, which stated: “We share your concern for these elevators, and have been attempting for some time to obtain repairs from Otis. Repairs were promised nearly three months ago.” Defendant’s Motion to Dismiss, Exhibit 2.

On December 23, 1988 defendants, through counsel, responded to Mr. Marshall’s letter of December 16. Defendants’ letter explained that credit information was of particular importance in light of their past experience with Clifton Terrace, which showed that payments were frequently several months late and that some contract charges had to be written off as uncollectible. Defendants explained that the necessary credit information promised Mr. Am-mermuller in October was never received, and they assumed that Clifton Associates was no longer interested. Defendants concluded: “If you are interested in having Otis perform elevator work, please contact the undersigned.” Defendant’s Motion to Dismiss, Exhibit 3.

More correspondence, both oral and written and of similar character, ensued. Finally, by letter dated January 31, 1989 defendants informed Mr. Marshall that they saw no reason for continuing discussions. The letter expressed concern for the safety of Otis employees and concern over the “tone” of the parties’ recent communications. It stated: “We cannot do business with someone who has repeatedly threatened litigation against us.

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Bluebook (online)
728 F. Supp. 24, 1990 U.S. Dist. LEXIS 322, 1990 WL 1538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clifton-terrace-associates-ltd-v-united-technologies-corp-dcd-1990.