Szwast v. Carlton Apartments

102 F. Supp. 2d 777, 2000 U.S. Dist. LEXIS 10750, 2000 WL 964043
CourtDistrict Court, E.D. Michigan
DecidedJuly 10, 2000
Docket99-70517
StatusPublished
Cited by2 cases

This text of 102 F. Supp. 2d 777 (Szwast v. Carlton Apartments) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Szwast v. Carlton Apartments, 102 F. Supp. 2d 777, 2000 U.S. Dist. LEXIS 10750, 2000 WL 964043 (E.D. Mich. 2000).

Opinion

Opinion and Order

FEIKENS, District Judge.

I. Introduction

Cynthia Szwast, on behalf of herself and as Next Friend to her two minor children, Matthew and Amber Szwast (collectively the plaintiffs), sued Carlton Apartments and its owner, Kratt & Associates (collectively the defendants) for a violation of the Fair Housing Act’s prohibition against discrimination based on familial status in the rental of housing. See 42 U.S.C. § 3604. Familial status means “one or more individuals (who have not attained the age of 18 years) being domiciled with... a parent.” 42 U.S.C. § 3602(k).

On November 29, 1999, I granted summary judgment for the plaintiffs based on the Fair Housing Act. 1 At that hearing, the plaintiffs presented uncontroverted evidence that a manager of Carlton Apartments, Rosemary McKenzie, told Cynthia Szwast that they did not rent upper-story apartments to families with children.

The case proceeded to a jury trial on damages. The jury awarded the plaintiffs $3,000 in compensatory damages and $400,000 in punitive damages.

The defendants have now moved for a new trial, or in the alternative, remittitur. The plaintiffs have filed a motion for 'attorney’s fees.

II. The Jury Instructions

In the Amended Joint Pre-Trial Statement, see Local Rule 16.2(a) the defendants agreed to the jury instructions which they now assert were erroneous. At trial, I asked defense counsel twice, outside the presence of the jury and before the jury started deliberations, whether he had any objections to the instructions on damages. Twice, he said no. See Tr. 14 — III, Tr. 52-III.At final argument, defense counsel told the jury: “Please listen very carefully to the Judge’s instructions because they’re very well thought out; they represent the law.” Tr. 37 — III.

The defendants now argue that:

The jury instructions were so riddled with misstatements of law that, viewed as a whole, they were confusing and misleading and resulted in a miscarriage of justice; such obvious and prejudicial error in instructing the jury constitutes grounds for a new trial.

Deft’s Br., p. 5.

Rule 51 of the Federal Rules of Civil Procedure instructs:

No party may assign as error the giving or the failure to give an instruction unless that party objects thereto before the jury retires to consider its verdict, stating distinctly the matter objected to and the grounds of the objection. Opportunity shall be given to make the objection out of the hearing of the jury.

Nonetheless, the defendants do have, in a motion for new trial, grounds to assert error in the instructions, although these grounds are limited by the failure to object at trial. The United States Court of Appeals for the Sixth Circuit has held:

Obvious and prejudicial error in instructing the jury constitutes grounds for a new trial even if the party assigning the instructions as error failed to object before the trial court. The grant of a new trial under these circumstances falls within the trial court’s discretion to act to prevent a miscarriage of justice.

Fryman v. Federal Crop Insurance Corp., 936 F.2d 244, 248 (6th Cir.1991) (citations omitted). Thus, I must inquire “whether the instructions as a whole provide[d] the jury with sufficient guidance concerning the issues to be tried.” Id. (citation omitted).

The defendants contend that the instructions on punitive damages were *780 faulty. As to punitive damages, I gave the following instructions:

[T]he Fair Housing Act allows a jury to award punitive damages against a defendant. Punitive damages may be awarded for two reasons: one, to punish a defendant for its misconduct; or two, to deter a defendant or other persons from acting in the same way in the future.
[D]amages may be awarded against defendants if the plaintiffs have proven either that the defendants’ misconduct was motivated by an intent to discriminate or that the defendants’ conduct involved reckless disregard or callous indifference to the legal rights of the plaintiff that are protected by the laws that are involved in this case. Under the Fair Housing Act, it is not necessary for the plaintiffs to show that the defendant acted with actual malice or evil towards the plaintiff.
“Reckless disregard or callous indifference” means that the defendant deliberately disregarded the plaintiffs rights. For example, a defendant has acted with reckless disregard or callous indifference when the defendants knew or should have known that the plaintiff was in danger of being harmed and that the defendant could have taken steps either to ensure that the plaintiff was not harmed or that the harm to the plaintiff was corrected but that the defendants failed to take such steps. If for example, you find that a defendant had knowledge of the Fair Housing Act but took insufficient steps to avert harm to the plaintiff, you may award punitive damages on this basis to the plaintiff.

Trial Transcript (Tr.) 46-47-III.

In Smith v. Wade, the Supreme Court applied the common law standard for puni-five damages to a ease involving a violation of 42 U.S.C. § 1983; it held: “reckless or callous disregard for the plaintiffs rights, as well as intentional violations of federal law, should be sufficient to trigger a jury’s consideration of the appropriateness of punitive damages.” 461 U.S. 30, 51, 103 S.Ct. 1625, 75 L.Ed.2d 632 (1983). This standard applies to the violation of rights guaranteed under the Fair Housing Act. The instructions in this case reflected the proper standard for punitive damages.

The defendants also assert error in the instructions on assessing punitive damages on a principal for an agent’s conduct. In a Title VII action, the Supreme Court acknowledged that agency principles may limit a principal’s liability for punitive damages. See Kolstad v. American Dental Assn., 527 U.S. 526, 543, 119 S.Ct. 2118, 144 L.Ed.2d 494 (1999). The Court quoted the Restatement on Agency:

Punitive damages can properly be awarded against a master or other principal because of an act by an agent if, but only if:
(d) the principal or a managerial agent of the principal ratified or approved that act.

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Related

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Cite This Page — Counsel Stack

Bluebook (online)
102 F. Supp. 2d 777, 2000 U.S. Dist. LEXIS 10750, 2000 WL 964043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/szwast-v-carlton-apartments-mied-2000.