Louisiana Fair Housing Action Center, Inc. v. Plantation Management Company, LLC

District Court, E.D. Louisiana·Decided May 16, 2022·No. 2:20-cv-02339·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

LOUISIANA FAIR HOUSING CIVIL ACTION ACTION CENTER INC. VERSUS CASE NO. 20-2339 PLANTATION MANAGEMENT SECTION: “G”(3) COMPANY LLC et al. ORDER AND REASONS

Before the Court is Moving Defendants St. Jude Management #2, LLC and Lawrence Stansberry (collectively, “Movants”) “12(b)(6) Motion to Dismiss for Failure to State a Claim and, in the Alternative, 12(e) Motion for More Definite Statement.”1 In this litigation, Plaintiff Louisiana Fair Housing Action Center (“Plaintiff”) alleges that several assisted living facilities and nursing homes in Southeast Louisiana, including one facility allegedly owned, operated, and managed by Movants, have engaged in discriminatory practices against individuals who are deaf.2 Plaintiff asserts claims against Movants for violations of the Fair Housing Act (“FHA”), the Rehabilitation Act, the Patent Protection and Affordable Care Act (“ACA”) the Americans with Disabilities Act (“ADA”), and Louisiana law.3 Having considered the motion, the memoranda in support and in opposition, the record, and the applicable law, the Court denies the motion.

1 Rec. Doc. 92. 2 Rec. Doc. 70. 3 Id. I. Background A. Factual Background On August 23, 2020, Plaintiff filed a Complaint in this Court against Movants, Commcare Corporation, Commcare Management Corp., Lucy Garner, William Garner, Ronald A Goux,

Jeremy Goux, Timothy Goux, Highpoint Healthcare LLC, Metairie Operations, LLC, Notre Dame Health System, Plantation Management Co., LLC, and Medico, LLC.4 With leave of Court, Plaintiff filed an Amended Complaint on March 12, 2021,5 and a Second Amended Complaint on June 2, 2021.6 In the Second Amended Complaint, Plaintiff alleges that Movants are owners, operators, or “an individual with operational or managerial control” of St. Luke’s Living Center (the “Facility”).7 Plaintiff avers that during the course of a years-long investigation into nursing homes and assisted living facilities in Southeastern Louisiana, Plaintiff discovered that employees of the Facility engaged in acts of discrimination against individuals who are deaf.8 Specifically, Plaintiff asserts that staff at the Facility “refused interpretive assistance notwithstanding receipt of generous

federal funds that not only presume and require non-discrimination in services, but affirmatively mandate that necessary methods to enable effective communication be provided to deaf individuals.”9 According to Plaintiff, four entities have direct ownership interests in the Facility:

4 Rec. Doc. 1. 5 Rec. Doc. 43. 6 Rec. Doc. 70. 7 Id. at 6. 8 Id. at 10–12. 9 Id. at 2. Lawrence Stansberry (“Stansberry”), Lucy Garner, William Garner, and St. Jude Management #2, LLC (“St. Jude”).10 Plaintiff is a nonprofit fair housing advocacy organization that investigates alleged or suspected discriminatory housing practices and litigates enforcement actions.11 Plaintiff sends

testers to simulate housing transactions and evaluate a provider’s treatment of prospective tenants to determine if the provider is engaging in discriminatory housing practices.12 Plaintiff states that upon learning of possible discrimination in area nursing homes and assisted living facilities, it launched an investigation and testing process which initially included sixty such homes and facilities.13 As part of this investigation, Plaintiff explains that its testers contacted housing providers and made inquiries on behalf of a fictitious prospective deaf resident.14 Plaintiff conducted the investigation in three phases.15 Plaintiff avers that during “Phase 1” of the investigation, one of Plaintiff’s testers contacted the Facility to inquire about long-term placement for a prospective deaf resident who could communicate only through American Sign Language (“ASL”).16 Plaintiff asserts that the Facility employee with whom the tester spoke

indicated that the Facility “‘would be unable to meet [a deaf resident’s] needs because we have no one on staff to interpret what she is saying.’”17 Plaintiff further alleges that when the tester asked

10 Id. at 6–7. 11 Id. at 3. 12 Id. 13 Id. at 10. 14 Id. 15 Id. at 10–12. 16 Id. at 22. 17 Id. if the Facility would “make an exception, such as hiring a certified interpreter,” the Facility employee suggested a different facility and reiterated that the Facility could not offer interpretive services for deaf residents.18 During “Phase 2” of the investigation, Plaintiff avers that one of its testers again contacted the Facility.19 According to Plaintiff, the tester asked “Janis in the Admissions Department” what

accommodations the Facility offered for deaf residents.20 Plaintiff asserts that Janis informed the tester that the Facility could provide a deaf resident with a white board to facilitate communication, but that no VRI services would be made available.21 Janis allegedly explained that VRI would be difficult to implement because the staff were “unfamiliar” with it and the Facility “did not have internet at the nursing stations.”22 Plaintiff conducted further investigation in July 2020, referred to as “Phase 3.”23 Plaintiff asserts that during Phase 3, one of its testers again contacted the Facility on June 18, 2020, this time speaking to “Kelly in the Admissions Department.”24 Plaintiffs alleges that Kelly told the tester that the Facility had “no specific programs for deaf residents and no one on staff that speaks sign language.”25 Plaintiff explains that when the tester inquired about VRI, Kelly offered to

18 Id. 19 Id. 20 Id. 21 Id. at 23. 22 Id. 23 Id. at 11. 24 Id. at 23. 25 Id. contact the Facility’s Chief Operating Officer to ask whether the Facility could offer the service.26 The following day, Kelly allegedly left a voicemail with the tester explaining that the Facility “wouldn’t be able [to] purchase the interpreter service,” but if the prospective deaf resident were to bring her own equipment to the Facility and pay for the VRI service, then the Facility “would be able to set it up with their internet service provider.”27

Plaintiff brings five claims against Movants: (1) a violation of the FHA, (2) a violation of the Rehabilitation Act, (3) violations of Section 1557 of the ACA, (4) a violation of the ADA, and (5) a negligent supervision and training claim under Louisiana law.28 Plaintiff seeks declaratory judgment, injunctive relief, compensatory and punitive damages, and attorney’s fees.29 II. Parties’ Arguments A. Movants’ Arguments in Support of the Motion to Dismiss Movants seek dismissal of Plaintiff’s claims, arguing that Plaintiff lacks standing and that Plaintiff fails to plead facts upon which relief could be granted.30 Movants argue that Plaintiff lacks standing.31 Movants contend that Plaintiff is not an

“aggrieved person” under the Rehabilitation Act, the ACA, the ADA, or Louisiana law because it is not a prospective resident or a current disabled resident who has been subjected to discriminatory behavior on the basis of a known disability.32 Although Movants acknowledge that the FHA

26 Id. at 24. 27 Id. 28 Id. at 26–31. 29 Id. at 32–33. 30 Rec. Doc. 92 at 1–2. 31 Rec. Doc. 92-1 at 4. 32 Id. at 4. extends standing to “testers,” they aver that the testers referenced in Plaintiff’s Second Amended Complaint are not parties to this litigation.33 Movants contend that the FHA extends standing to a person “who (1) claims to have been injured by a discriminatory housing practice; or (2) believes that such person will be injured by a discriminatory housing practice that is about to occur.”34 Movants conclude that “[t]here is simply no such plaintiff in this litigation.”35

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Louisiana Fair Housing Action Center, Inc. v. Plantation Management Company, LLC, (E.D. La. 2022).

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