Jones v. Amalgamated Warbasse Houses, Inc.

97 F.R.D. 355, 1982 U.S. Dist. LEXIS 17377
CourtDistrict Court, E.D. New York
DecidedNovember 15, 1982
DocketNo. CV 80-3444
StatusPublished
Cited by18 cases

This text of 97 F.R.D. 355 (Jones v. Amalgamated Warbasse Houses, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Amalgamated Warbasse Houses, Inc., 97 F.R.D. 355, 1982 U.S. Dist. LEXIS 17377 (E.D.N.Y. 1982).

Opinion

MEMORANDUM & ORDER

PLATT, District Judge.

The parties to this would-be class action seek approval of an Order and Judgment of Consent (settlement agreement) submitted pursuant to Fed.R.Civ.P. 23(e). No class members objected to the proposed settlement at a hearing on October 15,1982, and none submitted opposition in writing. For this reason and those that follow, the agreement will be approved.

I. Introduction

Plaintiffs allege that Amalgamated War-basse Houses, Inc. (Warbasse), a limited-profit mutual housing company located near the Coney Island section of Brooklyn, and the New York State Division of Housing and Community Renewal (Division)1 systematically prevented Black and Hispanic citizens from obtaining apartments at the 2,585-unit Warbasse complex, thereby violating the Thirteenth and Fourteenth Amendments to the United States Constitution, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. § 3601 et seq. (1977)), 42 U.S.C. §§ 1981-1983 (1981), and the New York Human Rights Law (N.Y.Exec.Law § 296(2-a) (McKinney 1982)).

This action was commenced on December 16, 1980. Shortly thereafter, both defendants moved to dismiss, while the plaintiffs sought injunctive relief. However, decision was reserved pending the outcome of settlement talks initiated, or at least encouraged, by Division Commissioner Richard Berman, a co-defendant. Magistrate A. Simon Chrein subsequently assisted in the negotiations, and on August 9, 1982 the parties submitted the proposed settlement agreement. This Court thereupon ordered that notice of the settlement be published in the minority press and mailed to each of the approximately 1,570 apartment applicants on the Warbasse waiting list. Comments were to be submitted by October 8, 1982. The hour-long hearing took place a week later.

II. The Settlement Agreement

As an initial matter, plaintiffs are to be certified pursuant to Fed.R.Civ.P. 23(b)(2) as representatives of the class of all Hispanic (Caribbean and Central American) and Black persons who have sought or may seek to live in the Warbasse complex.2 Order and Judgment of Consent, ¶ 2.3

Second, to compensate for past underrep-resentation of class members at Warbasse, defendants will establish a minority list and fill 215 apartments from it. Applications will be solicited through notice in the general and minority media. The list is to be [358]*358divided by apartment size into three groups: 121 one-bedroom units, 67 two-bedroom units, and 27 three-bedroom units. According to preference, individuals will be placed in one of these groups, in the order in which their •applications are received.4 Then they will be “shuffled” into the existing (outsiders’) list of non-Warbasse residents waiting for units, in the following ratios: one minority applicant to five outsiders for one-bedroom units; two minority applicants to seven outsiders for two-bedroom units; and one minority applicant to three outsiders for three-bedroom units. ¶¶ 6(c)(ii), 11. In each case, the minority applicant or applicants will be selected before the individuals on the outsiders’ list.5 ¶¶ 11,12. When the 215th unit is filled, the minority list will cease to exist.6

Third, Warbasse residents will continue to receive priority in seeking transfers to other units within the complex. ¶ 9.

Fourth, the “children’s” list is to be closed, and those currently on it will be “shuffled” into the outsiders’ list, five outsiders to every child.7 ¶ 10. Heretofore, the former has placed the sons and daughters of Warbasse residents in a preferred position.

Fifth, the outsiders’ list—for which income is the only admission criterion—will be maintained, although applicant solicitation is to be extended to the minority press. ¶ 24. Class members both on and off the minority list may apply for admission to the outsiders' list on equal terms with all others. However, no one will be permitted to remain on both lists. ¶ 25. Moreover, each minority group member beyond 100 on the outsiders’ list will reduce by one the total number that Warbasse must accept from the minority list. ¶ 25.

Finally, defendants have agreed to pay plaintiffs attorneys’ fees and costs totaling $41,750. ¶ 27. This will be reduced to $26,-000, a matter discussed in Part IV.

III. Discussion

To win court approval, a class action settlement generally “must be fair and reasonable and in the best interests of all those who will be affected by it.” 7A C. Wright & A. Miller, Federal Practice and Procedure § 1797, at 229 (1972) [hereinafter cited as Wright & Miller]. See Weinberger v. Kendrick, 698 F.2d 61, 73 (2d Cir.1982) (Friendly, J.), aff’g 91 F.R.D. 494 (S.D.N.Y. 1981); Tornabene v. General Development Corp., 88 F.R.D. 53, 61 (E.D.N.Y.1980), aff’d mem., 657 F.2d 265 (2d Cir.1981), modified (July 31, 1981); West Virginia v. Charles Pfizer & Co., 314 F.Supp. 710, 740 (S.D.N.Y. 1970), aff’d, 440 F.2d 1079 (2d Cir.), cert. denied, 404 U.S. 871, 92 S.Ct. 81, 30 L.Ed.2d 115 (1971). While the settlement proponents bear the burden of demonstrating fairness, 7A Wright & Miller § 1797, at 229 “[voluntary out of court settlement of disputes is ‘highly favored in the law,’ ” Wellman v. Dickinson, 497 F.Supp. 824, 830 (S.D. N.Y.1980) (quoting D.H. Overmyer v. Loflin, 440 F.2d 1213, 1215 (5th Cir.), cert. denied, 404 U.S. 851, 92 S.Ct. 87, 30 L.Ed.2d 90 (1971)), aff’d, 682 F.2d 355 (2d Cir.1982); [359]*359Newman v. Stein, 464 F.2d 689 (2d Cir.), cert. denied, 409 U.S. 1039, 93 S.Ct. 521, 34 L.Ed.2d 488 (1972); see Tornabene v. General Development Corp., supra, and “approval of class action settlements will be generally left to the sound discretion of the trial judge.” Wellman v. Dickinson, 497 F.Supp. 824 at 830 (citations omitted).. This is particularly true in Fair Housing Act cases, where the alternative to voluntary agreement—a court-ordered injunction— may inhibit cooperation and voluntary compliance. Williamsburg Fair Housing Committee v. New York City Housing Authority, 450 F.Supp. 602, 606 (S.D.N.Y.1978). See Alexander v. Gardner-Denver Co., 415 U.S. 36, 44, 94 S.Ct. 1011, 1017-18, 39 L.Ed.2d 147 (1974) (Title VII).

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97 F.R.D. 355, 1982 U.S. Dist. LEXIS 17377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-amalgamated-warbasse-houses-inc-nyed-1982.