Maldonado v. FirstService Residential, Inc.

District Court, S.D. Texas·Decided September 30, 2021·No. 4:20-cv-01484·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT September 30, 2021 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

JOSE A. MALDONADO, et al., § § Plaintiff, § § VS. § CIVIL ACTION NO. H-20-1484 § FIRSTSERVICE RESIDENTIAL, INC., § et al., § § Defendant. § MEMORANDUM OPINION AND ORDER This case arises from a neighborhood parking dispute. The Maldonados park a van and sometimes a trailer in their driveway and on the street in front of their house. The Maldonados allege that three of their neighbors—Cynthia Hill, John H. Palamidy, and Korey Herold— pressured FirstService Residential, Royal Brook Community Association, Inc., LLC, Natasha Brown, and Jennifer McKenry (the defendants responsible for developing and managing the subdivision, referred to as the “developer-defendants”) and Friendswood Development Company (the original developer and property owner of the subdivision) to selectively enforce deed restrictions against the Maldonados because they are Puerto Rican, and the neighbors want to exclude them from the neighborhood. After receiving several deed restriction parking violation citations, the Maldonados filed this lawsuit, asserting race and national-origin discrimination claims under 42 U.S.C. §§ 1981, 1982, and 1985(3), as well as claims for tortious interference and intentional infliction of emotional distress. The Maldonados also asserted state-law stalking claims against Palamidy and Hill. Royal Brook counterclaimed for breach of contract and breach of the deed restrictions. Palamidy brought a state-law counterclaim for stalking against Jose Maldonado, and Hill brought counterclaims for breach of contract, intentional infliction of emotional distress, and injunctive relief against both Maldonados. Following the court’s rulings on the numerous motions to dismiss, the remaining claims are:  the Maldonados’ §§ 1981, 1982, and 1985(3) claims against FirstService, Royal Brook,

Brown, and McKenry;  the Maldonados’ §§ 1981, 1982, and 1985(3) claims, the intentional infliction of emotional distress, and the claim for injunctive relief against Friendswood;  the Maldonados’ §§ 1981, 1982, and 1985(3) claims, the tortious interference claim, and the stalking claim against John H. Palamidy;  the Maldonados’ tortious interference claim against Cynthia A. Hill;  Royal Brook’s counterclaim for breach of § 10.20 of the deed restrictions;  John H. Palamidy’s counterclaim against Jose Maldonado for stalking; and

 Cynthia A. Hill’s counterclaim against the Maldonados for breach of contract. The defendants’ have filed a motion for summary judgment as to the claims against FirstService, Royal Brook, Brown, and McKenry and a motion to dismiss as to Friendswood. (Docket Entry No. 172). The court reset the scheduling deadlines to accommodate the consolidated defense motion, and the Maldonados timely responded on September 27, 2021. The court has reviewed the pleadings, the exhibits, and the relevant arguments that were presented at oral argument. The opinion on the developer-defendants’ motion for summary judgment and Friendswood’s motion to dismiss is set out below. The Maldonados have recently also moved for summary judgment, seeking pretrial dismissal of the defendants’ counterclaims against them. (Docket Entry No. 181). The

Maldonados’ motion for summary judgment was filed on September 27, 2021, four days before the scheduled docket call, and 16 days before trial, leaving insufficient time for a response and resolution. The Maldonados’ motion for summary judgment is denied without prejudice as untimely. It is also denied to the extent it seeks a pretrial ruling that no evidence supports the counterclaims or that undisputed evidence defeats them. The record shows disputes as to many facts material to the claims and the counterclaims. If, during the trial, the evidence makes it

appropriate, judgment as a matter of law may be sought. But the Maldonados’ motion for summary judgment, (Docket Entry No. 181), is denied without prejudice. I. Background Jose and Maria Maldonado purchased and moved into a house in the Royal Brook at Kingwood subdivision in November 2019. (Docket Entry No. 28 at ¶ 15). The Maldonados’ house is across the street from John H. Palamidy, Jr. and Cynthia A. Hill, who are married. (Id. at ¶ 7–8). The Maldonados live with their three children, and, until his death, Tony Maldonado, Jose Maldonado’s father. (Id. at ¶ 17). Royal Brook Community Association, Inc. is the homeowners’ association for Royal

Brook, and has the authority to enforce violations of the deed restrictions. (Id. at ¶ 5; Docket Entry No. 172-4 at 38). Jennifer McKenry is a member of the board of directors of the Association. (Docket Entry No. 28 at ¶ 10). FirstService conducts the daily business of the Association by investigating reports of alleged violations of the restrictions and serving as the point of contact for homeowners. (Id. at ¶ 64). Natasha Brown is employed by First Service as a community manager. (Id. at ¶ 4). Friendswood developed the Royal Brook subdivision. (Id. at ¶ 6). Shortly after the Maldonados moved in, Hill reported them to the Association for parking a trailer in front of their house. (Docket Entry No. 172 at ¶ 13). First Service investigated the complaint and sent a notice to the Maldonados requiring them to remove the trailer. (Id.). This initiated a feud between the parties. The Maldonados allege that Palamidy repeatedly questioned them about their race, ethnicity, and immigration status, (Docket Entry No. 28 at ¶¶ 21–22); made racially charged comments, (id. at ¶¶ 25, 26, 28, 36–37); and blocked access to their mailbox and swerved towards

them with his car, (id. at ¶¶ 39, 53). The Maldonados also allege that they overheard Hill and Herold discussing how to deal with “these people.” (Id. at ¶¶ 35, 43). In January 2020, Jose Maldonado posted a video of Palamidy on social media that accused Palamidy of theft. (Docket Entry No. 172 at ¶ 14). Palamidy allegedly responded by telling Maldonado to “get rid of your taco truck.” (Id.). The Maldonados allege that Palamidy, Hill, and Herold’s complaints to the Association led Royal Brook, FirstService, Brown, and McKenry to issue several parking citations to the Maldonados and insist that they remove their van and trailer from the subdivision. (Docket Entry No. 28 at ¶¶ 63, 80, 81). The Maldonados allege that their parking of the van and trailer complied with the deed restrictions, (Id. at ¶¶ 82, 110–112), and that white residents park similar

vans on the driveways and streets in front of their homes, (id. at ¶ 83). The Maldonados filed a series of state and federal claims against the defendants, some of which the court has dismissed. The developer-defendants moved for summary judgment on the remaining claims. Friendswood moved to dismiss the claims against it. The parties conducted discovery and submitted a significant summary judgment record. This record is examined under the applicable legal standards. II. Summary Judgment A. The Legal Standard “Summary judgment is appropriate only when ‘the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.’” Shepherd ex rel. Estate of Shepherd v. City of Shreveport, 920 F.3d 278, 282–83 (5th Cir. 2019) (quoting Fed. R. Civ. P. 56(a)). “A material fact is one that might affect the outcome of the suit under governing law,” and “a fact issue is genuine if the evidence is such that a reasonable jury could

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Maldonado v. FirstService Residential, Inc., (S.D. Tex. 2021).

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