Terri L. Hamad v. Woodcrest Condominium Association

328 F.3d 224, 2003 U.S. App. LEXIS 7495, 2003 WL 1906343
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 22, 2003
Docket00-2502, 02-1479
StatusPublished
Cited by184 cases

This text of 328 F.3d 224 (Terri L. Hamad v. Woodcrest Condominium Association) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Terri L. Hamad v. Woodcrest Condominium Association, 328 F.3d 224, 2003 U.S. App. LEXIS 7495, 2003 WL 1906343 (6th Cir. 2003).

Opinions

GILMAN, Judge, delivered the opinion of the court, in which COLE, Judge, joined. DAVID A. NELSON, Judge, delivered a separate dissenting opinion.

OPINION

GILMAN, Circuit Judge.

Kayla Joyella, Terri L. Hamad, and Ak-ram Hamad brought suit against the Woodcrest Condominium Association, its property manager, and five members of its board of directors, alleging that Wood-crest’s bylaws discriminated on the basis of familial status in violation of the Fair Housing Act, 42 U.S.C. §§ 3601-3619. Retaliation claims under the Act were added in an amended complaint. The district court denied Joyella’s and the Hamads’ [229]*229motions for a preliminary injunction and for summary judgment, granted summary judgment against them on the discrimination claims, and granted judgment as a matter of law against them at the close of their case-in-chief on the retaliation claims. For the reasons set forth below, we REVERSE the judgment of the district court and REMAND the case for further proceedings consistent with this opinion.

I. BACKGROUND

Woodcrest, a four-building, three-story condominium development, is located in Monroe, Michigan. In 1997, its bylaws prohibited families with children from purchasing or living in units on the second or third floors. The bylaws further provided that if a child moved in with a second— or third-floor owner, the owner would be fined if he or she did not vacate the unit within one year of the child’s arrival.

Terri and Akram Hamad inquired about purchasing a unit in July of 1997. According to the Hamads, property manager Barbara Diedrich told them about the bylaw restrictions and suggested that they purchase a first-floor unit if they “were even thinking about having children.” They did in fact purchase a first-floor unit. When they had a child in 2000, they decided to move, despite not being required to do so. They attribute part of their difficulty in selling the unit to the bylaws that restrict children to first-floor condominium units.

Kayla Joyella owns a third-floor unit. She was thinking about becoming the legal custodian of her 15-year-old nephew and had taken preliminary steps toward that end in May of 2000. But the Woodcrest board of directors denied Joyella’s request for permission to allow her nephew to move in with her.

In June of 2000, Joyella and the Hamads filed suit in the United States District Court for the Eastern District of Michigan against Woodcrest, property manager Barbara Diedrich, and five members of Wood-crest’s board of directors. They challenged the bylaws as a violation of both the Fair Housing Act, 42 U.S.C. §§ 3601-3619, and of Michigan’s Elliot-Larsen Civil Rights Act, Mich. Comp. Laws Ann. §§ 37.2101-37.2804. A preliminary injunction was also sought to enjoin enforcement of the bylaws.

Joyella and the Hamads amended their complaint two months later. The amended complaint omitted the earlier state-law cause of action, but added that the defendants had retaliated against Joyella and the Hamads for bringing the original suit under the Fair Housing Act. Both sides moved for summary judgment shortly thereafter. The motion by Joyella and the Hamads was limited to the issue of liability.

In November of 2000, the district court denied the motion for a preliminary injunction. Joyella and the Hamads timely filed a notice of appeal from this denial. In January of 2001, the district court entered an order that (1) denied the motion by Joyella and the Hamads for summary judgment, (2) granted the defendants’ motion for summary judgment against the Hamads on their discrimination claim, and (3) postponed a ruling on the motion for summary judgment against Joyella on her discrimination claim to allow her 45 days to “submit additional information ... as to the status of her guardianship of [her nephew].” The court subsequently granted summary judgment against Joyella on the discrimination claim.

After the district court denied a motion by Joyella and the Hamads to file a second amendment to their complaint, trial commenced on the retaliation claims in February of 2002. The district court granted judgment as a matter of law in favor of the [230]*230defendants at the close of Joyella’s and the Hamads’ case-in-chief. A timely notice of appeal was filed. Both this appeal and the appeal from the denial of Joyella’s and the Hamads’ motion for a preliminary injunction are now before us.

II. ANALYSIS

A. The district court erred in denying the motion for a preliminary injunction on the basis of standing

We review the denial of a motion for a preliminary injunction under the “abuse of discretion” standard. United States v. 2903 Bent Oak Highway, 204 F.3d 658, 665 (6th Cir.2000). “A district court abuses its discretion when it applies the incorrect legal standard, misapplies the correct legal standard, or relies upon clearly erroneous findings of fact.” Schenck v. City of Hudson, 114 F.3d 590, 593 (6th Cir.1997). This standard “is a shorthand way of expressing the idea that this court ordinarily extends a high degree of deference to the district court’s decision, but does so only if the district court properly understood the pertinent law and applied it in a defensible manner to the facts as they appear in the record.” 2908 Bent Oak Highway, 204 F.3d at 665.

A district court must assess four factors in deciding whether to issue a preliminary injunction: “(1) whether the plaintiff has established a substantial likelihood or probability of success on the merits; (2) whether there is a threat of irreparable harm to the plaintiff; (3) whether issuance of the injunction would cause substantial harm to others; and (4) whether the public interest would be served by granting injunctive relief.” Nightclubs, Inc. v. City of Paducah, 202 F.3d 884, 888 (6th Cir.2000). “The four considerations applicable to preliminary injunction decisions are factors to be balanced, not prerequisites that must be met.” Mich. Bell Tel. Co. v. Engler, 257 F.3d 587, 592 (6th Cir.2001).

Perhaps following this court’s statement that “[although no one factor is controlling, a finding that there is simply no likelihood of success on the merits is usually fatal,” Gonzales v. Natl Bd. of Med. Exam’rs, 225 F.3d 620, 625 (6th Cir.2000), the district court analyzed only the first factor. It denied the motion for a preliminary injunction on the basis that neither Joyella nor the Hamads had standing to sue under the Fair Housing Act.

The Fair Housing Act prohibits discrimination in the sale or rental of housing because of “race, color, religion, sex, familial status, or national origin.” 42 U.S.C. § 3604. Any “aggrieved person” is authorized to bring a civil action pursuant to 42 U.S.C. § 3613.

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Bluebook (online)
328 F.3d 224, 2003 U.S. App. LEXIS 7495, 2003 WL 1906343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terri-l-hamad-v-woodcrest-condominium-association-ca6-2003.