Reese v. Park Place Condominium Homeowners Association I

CourtDistrict Court, District of Columbia
DecidedSeptember 8, 2023
DocketCivil Action No. 2022-2660
StatusPublished

This text of Reese v. Park Place Condominium Homeowners Association I (Reese v. Park Place Condominium Homeowners Association I) 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
Reese v. Park Place Condominium Homeowners Association I, (D.D.C. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

ALLISON REESE,

Plaintiff,

v. Case No. 22-cv-02660 (CRC)

PARK PLACE CONDOMINIUM HOMEOWNERS ASSOCIATION I, et al,

Defendant.

MEMORANDUM OPINION AND ORDER

In June 2022, Allison Reese sued Park Place Condominium Homeowners Association I

(“PPCA”), the condominium association she belongs to, and MCM, Inc. (“MCM”), the

condominium’s property manager, for violations of the Fair Housing Act (“FHA”). Reese

alleged that PPCA and MCM (“Defendants”) retaliated and discriminated against her by refusing

to grant her use of the association’s insurance policy to make repairs on her unit. Defendants

each filed a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6), asserting

that Reese’s claims are time-barred and, in the alternative, that she failed to state a claim under

the FHA. Because Reese’s claims against MCM are time-barred, the Court grants MCM’s

motion to dismiss in full. Conversely, the Court finds that Reese’s claims against PPCA are

timely, and that she has alleged sufficient facts to support her allegation of discrimination. Reese

fails, however, to sufficiently plead retaliation. Accordingly, the Court grants PPCA’s motion to

dismiss in part and denies it in part.

While the motions to dismiss were pending, Reese filed an amended complaint, adding

claims of breach of contract and fiduciary duty. Because Reese was required to request leave to

amend her complaint pursuant to Federal Rule of Civil Procedure 15, the Court construes her

amended complaint as a motion for leave to file an amended complaint. After Defendants filed a motion to strike, or in the alternative, dismiss the amended complaint, Reese failed to respond.

The Court therefore grants the Defendants’ motion to dismiss the amended complaint as

conceded.

I. Background

The Court draws the following facts from Reese’s complaint and accepts them as true at

the motion to dismiss stage. See Sparrow v. United Air Lines, Inc., 216 F.3d 1111, 1113 (D.C.

Cir. 2000). The Defendants no doubt contest some of Reese’s allegations.

Reese is an African-American woman who owns and lives in a townhome in the Park

Place Condominiums in Northeast Washington, D.C. Compl. ¶ 5. Her unit suffers from

“foundation defects,” which a structural engineering report first identified in June 2014. Id. ¶¶ 6,

26. The defects caused erosion and water damage beneath the foundation of Reese’s building

and led to “severe[] damage[]” to both the foundation and interior of Reese’s condominium. Id.

¶ 7. In December 2014, PPCA’s legal counsel advised that PPCA was “responsible for [taking]

corrective action [to repair] the erosion under the building” because the erosion was “outside of

the condo unit and affect[ed] the whole building.” Id. ¶ 33.

On six occasions between December 2014 and July 2021, Reese requested that PPCA use

its master insurance policy to fund repairs to her condominium. Id. ¶¶ 9, 17–23. She made these

requests in December 2014, March 2018, June 2019, August 2019, January 2021, and July 2021.

Id. PPCA or MCM (PPCA’s property management company during part of the relevant period)

denied or ignored each of her requests. Id. ¶¶ 17, 19–23; see also MCM’s Mot. Dismiss at 1, 10

(noting that a different company managed PPCA in at least 2015). PPCA, however, allowed

other unit owners, including White owners and one other African-American owner, to use the

master insurance policy to “repair the same or similar foundation damage.” Compl. ¶¶ 27, 34.

2 Reese also served on the Park Place Association Board from 2015 to 2016 and during

that time “identified and reported fraud, and waste of the Association’s financial resources” by

other board members. Id. ¶ 41. Specifically, she “exposed” that board members purchased

foreclosed properties at Park Place and then used PPCA funds to make repairs to the units. Id. ¶

42.

In September 2021, Reese filed a housing discrimination complaint with the Department

of Housing and Urban Development (“HUD”). Id. ¶ 24. 1 She exhausted her administrative

remedies in December 2021. Id.

In June 2022, Reese filed suit in the District of Columbia Superior Court alleging that

PPCA’s rejection of her insurance requests violated the Fair Housing Act (“FHA”) under two

theories. First, by permitting White owners to use the master insurance policy while rejecting

Reese’s requests, Reese claimed PPCA engaged in racial discrimination in violation of 42 U.S.C.

§ 3605. Id. ¶ 27. Second, Reese alleged that PPCA rejected her insurance requests in retaliation

for her reporting of board members’ misconduct, in violation of 42 U.S.C. § 3617. Id. ¶ 48. In

September 2022, Defendants PPCA and MCM removed the case from D.C. Superior Court to

this court based on federal question and supplemental jurisdiction.

PPCA and MCM now move to dismiss Reese’s complaint on the grounds that it is time

barred by the statute of limitations and fails to state a claim. PPCA’s Mot. Dismiss at 4–5;

MCM’s Mot. Dismiss at 5. While Defendants’ motions were pending, Reese filed an amended

complaint, which the Court construes as a motion for leave to file an amended complaint.

1 Both defendants assert that the only HUD complaint they received was dated October 12, 2021. MCM Mot. to Dismiss at 13 n.3; PPCA Mot. to Dismiss at 5 n.4. Because the Court “accept[s]” the complaint’s factual allegations “as true” at the motion to dismiss stage, the Court will use September 2021 as the operative date for the filing of Reese’s administrative complaint. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). In any event, the date of the administrative complaint does not impact the Court’s analysis.

3 II. Legal Standard

“To survive a motion to dismiss [under Rule 12(b)(6)], a complaint must contain

sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’”

Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544,

570 (2007)). A court “must treat the complaint’s factual allegations as true and must grant

plaintiff the benefit of all inferences that can be derived from the facts alleged.” Sparrow v.

United Air Lines, Inc., 216 F.3d 1111, 1113 (D.C. Cir. 2000) (cleaned up). However, the Court

need not credit “[t]hreadbare recitals of the elements of a cause of action” or “mere conclusory

statements.” Iqbal, 556 U.S. at 678.

III. Analysis

Defendants offer three reasons to dismiss Reese’s complaint: (1) Reese’s claims are

barred by the applicable statute of limitations, (2) Reese has failed to state a claim of retaliation,

and (3) Reese has failed to state a claim of housing discrimination. See PPCA’s Mot. Dismiss at

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