Tejada v. Littlecity Realty LLC

308 F. Supp. 3d 724
CourtDistrict Court, E.D. New York
DecidedApril 10, 2018
Docket18–CV–483
StatusPublished
Cited by10 cases

This text of 308 F. Supp. 3d 724 (Tejada v. Littlecity Realty LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tejada v. Littlecity Realty LLC, 308 F. Supp. 3d 724 (E.D.N.Y. 2018).

Opinion

Jack B. Weinstein, Senior United States District Judge:

*726Table of Contents

I. Introduction...726

a. Phase I: Injunctive Relief...727

b. Phase II: Trial of Liability and Damages...728

II. Background...728

a. Parties...728

b. Plaintiffs' Claims...728

c. Defendants' Motion to Dismiss...728

III. Factual Allegations...728

IV. Law...729

a. Motion to Dismiss...729

b. Supplemental Jurisdiction...729

c. Statute of Limitations for Fair Housing Act...730

d. Statute of Limitations for New York City Human Rights Law...730

e. Statute of Limitations for New York City Housing Maintenance Law...731

f. Statute of Limitations for New York Rent Stabilization Law...731

V. Application...732

a. Supplemental Jurisdiction...732

b. Continuing Violations Under the Fair Housing Act and City Law Claims...733

c. Rent Stabilization Fraud...734

VI. Conclusion...734

I. Introduction

Plaintiffs allege housing discrimination with respect to race and national origin, in the operation of two large apartment buildings in Sunset Park, Brooklyn, an area of increasing gentrification. Complaint ("Compl."), ECF No. 1, Jan. 23, 2018, at ¶ 1. They claim defendants intentionally targeted Latino residents living in rent-stabilized apartments, in violation of federal, state and municipal law, in an effort to displace them. Id. at ¶ 2 (Defendants required "only tenants who are perceived as Latino to provide proof of their legal immigration status when they renew their leases; [brought] frivolous eviction proceedings against Latino tenants; and [threatened and intimidated] Latino tenants."). Defendants then, allegedly, "imposed unlawful rent increases" and "misrepresented the regulatory status of these apartments" to incoming tenants. Id.

New York City provides powerful tenant protection laws. Nevertheless, landlords, as reported, are increasingly resorting to harassment and other tactics to circumvent legal protections and remove rent-stabilized tenants in an effort to illegally raise rents. See, e.g., Michael Greenberg, Tenants Under Siege: Inside New York City's Housing Crisis , The N.Y. Review of Books, Aug. 17, 2017 ("When a landlord embarks on a campaign to 'unlock value' in his building, it becomes a consuming psychological torment for renters ... [T]he barrage of lawsuits helps set the stage for a buyout: financially and emotionally ground down, the tenant agrees to relinquish his rights and depart."); Kim Barker, Landlord Raised Rents for Renovations Never Done, Lawsuit Says , N.Y. Times, Jul. 25, 2017 ("The rent for regulated apartments can only be increased a certain amount every year. They are the city's largest affordable-housing program-making them one of the only ways that many *727people can afford to live in New York City these days. Roughly 1 million apartments, or almost half the city's rental stock, are supposed to be regulated.").

The number of rent-stabilized apartments is rapidly diminishing. Greenberg, supra ("[B]etween 2007 and 2014, 25 percent of the rent-stabilized apartments on the Upper West Side of Manhattan were deregulated."); see also Justin R. La Mort, The Theft of Affordable Housing: How Rent-Stabilized Apartments Are Disappearing from Fraudulent Individual Apartment Improvements and What Can Be Done to Save Them , 40 N.Y.U. Rev. L. & Soc. Change 351, 362-63 (2016) ("From 1994 to 2012, New York City had a net loss of 152,751 affordable housing units from the rent stabilization system."); Luis Ferré-Sadurní, Annual Battle Over Raising Rents in New York Begins , N.Y. Times, Mar. 8, 2018 ("[One tenant] said that since her landlord raised her rent by $300 last month, she has been fearing eviction ..."); Jesse Drucker, Tenants Sue Kushner Companies Claiming Rent Rule Violations , N.Y. Times, Aug. 15, 2017 ("[The Landlord] was [allegedly] charging the tenant about $2,500 a month, when he estimated the legal rent should more properly have been about $1,100 a month, based on the permissible increases since the last time the unit's rent was regulated."); Mireya Navarro, Tenants Living Amid Rubble in Rent-Regulated Apartment War , N.Y. Times, Feb. 24, 2014 ("[T]enants and the landlord are locked in a standoff that underscores the anxiety coursing through changing neighborhoods, where many landlords are trying to capitalize on New York City's robust real estate market while many lower-income tenants wonder how long they will be able to hold on to their homes ... [T]enant advocates say that, in order to make a dent, the [city] must ... focus on the loss of affordable apartments.").

Defendants' motion to dismiss on the pleadings is denied. There is testimonial and documentary support for the claims that defendants: (1) perpetuated a fraudulent scheme to illegally remove plaintiffs, perceived Latinos, from their apartments through harassment and a variety of discriminatory tactics; (2) continued this discrimination and harassment from 2001 through 2017; and (3) acted with the purpose of displacing them, deregulating their apartments, and then increasing rent on incoming plaintiffs, largely non-Latino Caucasians.

Defendants have agreed to eliminate the unacceptable discriminatory nationality provision used in their leases for over a decade. See Hr'g Tr., Mar. 28, 2018.

The case will proceed in two phases: first, with a hearing and decision on the request for an injunction and declaratory order; and, second, with a trial on the merits for damages. The magistrate judge is respectfully requested to accelerate discovery and assist in settlement.

a. Phase I: Injunctive Relief

The court will hear an application for a permanent injunction on May 3, 2018, at 11:30 a.m. in court room 10B South. All named individual plaintiffs and defendants shall be present, subject to examination, at this evidentiary hearing.

Plaintiffs shall proceed with sworn witnesses present or provided through depositions or video testimony. On April 26, 2018, the parties shall file a list of witnesses and the expected substance of their testimony, exhibits properly authenticated and stipulations of admissibility. Defendants shall reciprocate on the same terms. At this hearing the court will resolve the issues of class certification and individual liability. See Fed. R. Civ. P. 23.

*728Briefs on injunctive relief, class certification and individual liability are due April 23, 2018.

b. Phase II: Trial of Liability and Damages

Trial is scheduled for July 9, 2018, in court room 10B South at 2:00 p.m. An in limine hearing will be held on June 25, 2018 at 10:30 a.m.

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Cite This Page — Counsel Stack

Bluebook (online)
308 F. Supp. 3d 724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tejada-v-littlecity-realty-llc-nyed-2018.