Richmond Tenants Organization, Inc. v. Richmond Redevelopment & Housing Authority

31 Va. Cir. 490, 1991 Va. Cir. LEXIS 351
CourtRichmond County Circuit Court
DecidedApril 16, 1991
DocketCase No. (Chancery) HA-681-3
StatusPublished

This text of 31 Va. Cir. 490 (Richmond Tenants Organization, Inc. v. Richmond Redevelopment & Housing Authority) is published on Counsel Stack Legal Research, covering Richmond County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richmond Tenants Organization, Inc. v. Richmond Redevelopment & Housing Authority, 31 Va. Cir. 490, 1991 Va. Cir. LEXIS 351 (Va. Super. Ct. 1991).

Opinion

By Judge T. J. Markow

This matter is before the court on the motion for partial summary judgment filed by the plaintiffs, who are a number of individuals who live in public housing, and Richmond Tenants Organization, Inc., a Virginia corporation formed pursuant to federal regulations promulgated by the United States Department of Housing and Urban Development (HUD) with the majority of its membership made up of tenants of public housing (collectively RTO). Also before the court are pleas in bar of res judicata and laches, as well as a motion to dismiss, filed by the defendant, Richmond Redevelopment and Housing Authority (RRHA), which owns and manages all public housing in the City of Richmond, Virginia.

To make the issue clear, the procedural posture of this case must be set forth and paralleled with the filing and progress of a federal action between the parties, Richmond Tenants Organization v. Richmond Redevelopment and Housing Authority, 751 F. Supp. 1204 (E.D. Va. 1990). On June 11, 1990, RTO filed its bill of complaint in this court, [491]*491requesting (A) an injunction requiring certain security measures be taken by RRHA; (B) a declaratory judgment that applicable state and federal law and that §§ 6(a), (c), and (p) of the lease between RRHA and its tenants require the measures sought; and (C) a declaratory judgment that RRHA may not eliminate the provisions of § 6(p) from its lease without the agreement of the existing tenants.

The Board of RRHA adopted an amended lease on July 17, 1990, to become effective November 1, 1990. The proposed lease would eliminate paragraph 6(p) found in the prior lease. On October 15, 1990, while this matter was still pending, RTO filed an action in the U.S. District Court for the Eastern District of Virginia seeking an injunction to prohibit implementation of the amended lease for residents of public housing. RRHA requested the federal court to abstain, arguing that all items could be resolved in the state proceeding. The federal court denied the motion to abstain holding that “there are no reasons why these actions should not be brought separately in separate courts.” November 20, 1990, Memorandum Opinion of Judge Williams, p. 2. The federal court granted a temporary injunction on October 31, 1990. On December 3, 1990, it entered its final order, accompanied by Findings of Fact and Conclusions of Law. Certain portions of the proposed lease were found unreasonable and were permanently enjoined from enforcement, and the temporary injunction was dissolved, allowing the balance of the lease to be implemented.

Both parties’ motions to amend the judgment order were granted. On December 21, 1990, an order of amendment was entered, clarifying that the finding that certain lease terms were unreasonable “shall not be construed to prevent RRHA from including in its lease the language of provisions specifically mandated by federal statute or regulation.” Additionally, the order stated, “The judgment of this Court was not intended to have any preclusive effect with regard to Plaintiffs’ claims arising under Virginia state law or the Virginia Constitution.” The final order was amended to read that the action was dismissed with prejudice to all issues between the parties under federal law and without prejudice as to issues between the parties under Virginia state law.

The RRHA then filed its plea of res judicata in the case at bar, contending that the action is barred as a result of the federal decision. It contends that the federal court could have exercised pendent jurisdiction over RTO’s state claims, since they arose out of a “common nucleus of operative fact.” UMWA v. Gibbs, 383 U.S. 715, 725 (1966). [492]*492However, the power to adjudicate pendent state claims is a discretionary one and the court may decide to dismiss them without prejudice. Webb v. Bladen, 480 F.2d 306, 309 (4th Cir. 1973). RRHA also cites Nottingham v. Weld, 237 Va. 416, 377 S.E.2d 621 (1989), for the proposition that a state court must give a federal decision the same preclusive effect it would receive in a federal court. When this rule is applied, we need only look to the federal court’s amended order of December 21, 1990, since it states clearly that the action was dismissed “without prejudice as to issues between the parties under Virginia state law.”

Although this case is not precluded by virtue of the plaintiffs’ failure to include their state claim in the federal suit simply because they “could have” done so, it is nevertheless prevented from going forward because the questions involved have become moot.

The court is asked in the bill of complaint to declare the rights of the plaintiffs to the lease which was in effect in June of 1990. Since that time, RRHA adopted a new lease, which was evaluated by the federal district court to determine its compliance with the U.S. Housing Act, specifically as to whether it contained only reasonable terms and whether the tenants were given proper notice and adequate opportunity to comment. Having determined that those requirements were met, after some court-imposed adjustments, the court dissolved the temporary injunction, making the new lease effective as of December 3, 1990. Therefore, the lease that RTO would have this court to construe is no longer in effect as a result of the ruling of the federal court, and it would be a vain act to attempt to construe a lease which has been superseded. See e.g., Levy v. Kosma, 129 Va. 446, 106 S.E. 228 (1921). Further, principles of full faith and credit require this court to give the same effect to that judgment as it has in the federal courts. Va. Code Ann. § 8.01-389(8) (Repl. Vol. 1984).

As to Count H, plaintiffs state that “if state law were to determine that § 6(p) is duplicative of §§ 6(a) and (c), then such determination would moot the issue of state law grandfather status.” This issue is determined by collateral estoppel. Collateral estoppel operates to prevent the relitigation of issues that were determined in previous actions between the same parties, even though they might be based on different claims. In these two cases, the plaintiffs were careful to separate their claims into state and federal law claims; however, any issues of fact that were determined by final judgment in the first case which [493]*493were necessarily decided there are precluded here. Bates v. Devers, 214 Va. 667, 671, 202 S.E.2d 917, 921 (1974).

In the federal suit, Judge Williams was charged with deciding whether every modified lease term was reasonable and whether the amendments were enacted after proper notice and adequate opportunity to comment. One of the allegations was that the notice to tenants that the amended lease would eliminate § 6(p) because it was duplicative of 6(a) and (c) was deceptive notice, since the plaintiffs contend that the provisions were not duplicative. Whether the sections were duplicative was then a necessary issue for the court to decide in order to reach its ruling that the notice was not deceptive.

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Bluebook (online)
31 Va. Cir. 490, 1991 Va. Cir. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richmond-tenants-organization-inc-v-richmond-redevelopment-housing-vaccrichmondcty-1991.