Torres v. Rothstein

District Court, D. Nevada·Decided December 26, 2020·No. 2:19-cv-00594·Unknown

Opinion

1 UNITED STATES DISTRICT COURT 2 DISTRICT OF NEVADA 3 CANDY TORRES, Case No.: 2:19-cv-00594-APG-EJY

4 Plaintiff Order Granting in Part Plaintiff’s Motion for Partial Summary Judgment 5 v. [ECF No. 68] 6 ALLAN ROTHSTEIN and KYLE PUNTNEY, 7 Defendants 8

9 Plaintiff Candy Torres sues defendants Allan Rothstein and Kyle Puntney for 10 discrimination and harassment. Torres alleges that Rothstein sexually harassed her when she 11 rented a home that Rothstein managed for Puntney, the property owner. She alleges that 12 Rothstein requested she perform a sexual act on him and that he conditioned her rental of the 13 property on her signing a “Direct Consent for Sexual Intercourse” form. Torres moves for partial 14 summary judgment on the following claims and defenses: (1) Rothstein’s violations of the 15 federal Fair Housing Act (FHA) and the Nevada Fair Housing Law (FHL); (2) Puntney’s 16 vicarious liability for Rothstein’s conduct; (3) Puntney’s affirmative defense that he was unaware 17 of Rothstein’s actions; and (4) the defendants’ affirmative defense of waiver.1 18 I deny Torres’s motion for summary judgment on the sexual harassment claims and 19 Puntney’s vicarious liability because there are genuine disputes over material facts. I grant 20 Torres’s motion as to Puntney’s affirmative defense that he was unaware of Rothstein’s conduct 21 because that fact does not allow Puntney to escape vicarious liability if the fact finder determines 22

1 Torres also initially moved for summary judgment on her Nevada Deceptive Trade Practices 23 Act (NDTPA) claim and Puntney’s vicarious liability for it. ECF No. 68 at 2. However, she withdrew the request after I dismissed the NDTPA claim. ECF Nos. 74 at 9; 75 at 3. 1 that Rothstein acted within the scope of employment or was aided by the agency relationship. I 2 also grant Torres’s motion for summary judgment on the defendants’ affirmative defense of 3 waiver, but only to the extent that the defense is based on Torres signing rental documents 4 containing waiver and hold harmless language.2

5 I. FACTUAL BACKGROUND 6 The Southern Nevada Regional Housing Authority (SNRHA) approved Torres and her 7 five children for a Section 8 housing choice voucher (HCV). ECF No. 68-2 at 39-40. The HCV 8 would subsidize a four-bedroom rental costing $1,550 or less per month. Id. at 40. Rentals paid 9 with HCV vouchers are subject to the Housing and Urban Development (HUD) regulations, a 10 housing assistance payments (HAP) contract, and a HUD tenancy addendum to the lease. ECF 11 No. 68-4 at 22. The HAP contract requires the landlord to “not discriminate against any person 12 because of race, color, religion, sex, national origin, age, familial status, or disability in 13 connection with the HAP contract.” Id. at 27. 14 Rothstein managed a house at 11893 Wedgebrook Street in Las Vegas (the Wedgebrook

15 House) for the owner, Puntney. ECF No. 70-2 at 34. Puntney signed a Property Management 16 Agreement for the Wedgebrook House with RX Realty as the broker and Rothstein as the agent 17 beginning in July 2010. Id. Under the agreement, Rothstein was authorized to negotiate, prepare, 18 and sign leases; collect rents, security deposits, and other charges; and manage the property and 19 maintenance. Id. at 36-37. Because Puntney lived out of state, he did not speak to his tenants 20 directly and left Rothstein to handle responsibilities related to the home. ECF No. 68-2 at 138- 21

2 Torres requests that if I do not grant all her requested relief, that I state any material facts not 22 genuinely in dispute and treat those facts as established in the case under Federal Rule of Civil Procedure 56(g). This decision is within my discretion. Fed. R. Civ. P. 56(g) advisory 23 committee’s note to 2010 amendment. Because I do not believe that stating undisputed facts here would expedite litigation, I decline to do so. 1 39. Puntney did not give Rothstein guidance on managing the property aside from requesting he 2 rent the property for 18-to-24-month leases. Id. at 142-45. Rothstein managed the Wedgebrook 3 House on Puntney’s behalf during the time Torres leased it. ECF No. 68-3 at 4, 9, 16, 22. 4 The exact timeline of the following events is unclear from the record. In September

5 2018, Torres found the listing for the Wedgebrook House online. ECF No. 68-2 at 6. She 6 contacted Rothstein about renting the property and he responded that he loved working with 7 Section 8 clients and said he would be willing to work with her. Id. at 7-8. She subsequently met 8 Rothstein at his home and submitted a rental application per his request. Id. at 16. Part of that 9 application included a document indicating that Rothstein was the “agent representing” her. ECF 10 No. 70-2 at 60. She also provided three money orders totaling $785 to serve as the deposit to 11 take the house off the market. ECF No. 68-2 at 54. 12 Later, Rothstein indicated that he required more money for the deposit, but Torres could 13 not afford it. Id. at 57. She therefore offered to clean and repair the house to make up the 14 difference, which would also help ensure the Wedgebrook House would pass the HUD’s housing

15 quality standards. Id. at 13-14, 58. Rothstein agreed to waive the cleaning fee and to reduce the 16 balance Torres owed on the deposit. Id. at 58-59. Torres then worked to fix up the house, and 17 Rothstein allowed her to stay there without a lease during that time. Id. at 12-13; ECF No. 70-2 18 at 31-32. 19 Torres visited Rothstein’s home multiple times to complete the necessary steps get her 20 application approved and to go through the SNRHA approval process. ECF No. 70-2 at 16-18. 21 Upon Rothstein’s instruction, Torres typed up a document stating that she found the Wedgebrook 22 House on the internet and that she chose Rothstein to represent her because “a friend 23 recommended him” based on his experience helping SNRHA clients. ECF Nos. 68-5 at 64; 70-2 1 at 23. Rothstein became involved in the SNRHA process directly, which included 2 communicating to the SNRHA office on Torres’s behalf when the office challenged her ability to 3 rent the Wedgebrook House. ECF No. 68-5 at 56-62. On November 17, after Torres fixed up the 4 Wedgebrook House, SNRHA inspected and approved it. ECF No. 68-2 at 23.

5 At some point, Torres alleges that Rothstein demanded she give him a “hand job” in 6 exchange for a lower deposit amount. Id. at 18-19. Torres refused and she left Rothstein’s house. 7 Id. at 20. Rothstein disputes that he propositioned Torres. He alleges Torres is the one who 8 offered to give him a “hand job” or “blow job” if he helped her get the Wedgebrook House. Id. at 9 100. Torres decided to carry on with the leasing process despite her alleged experience with 10 Rothstein because she believed she would lose her ability to use her HCV voucher on another 11 property once the Wedgebrook House had been approved. Id. at 24-25. She had also signed a 12 lease for the partial month of November, which included a provision stating that if the lease 13 contract was not completed, she would owe Rothstein $500. ECF No. 70-2 at 30. 14 Torres signed the final lease on November 23, 2018 at Rothstein’s house. Id. at 82.

15 Rothstein presented her with the lease and other required forms all together. ECF No. 68-2 at 95- 16 96. One document was a “Hold Harmless Agreement,” which excused the owner and agent of 17 the property from “any and all liability as to the location, physical and aesthetic condition, use, 18 value, and conditions affecting the property.” ECF No. 70-2 at 83. Other documents included a 19 smoke detector disclosure, an illegal activity form, and a Nevada real estate licensee form. ECF 20 No. 68-5 at 2-22.

Free access — add to your briefcase to read the full text and ask questions with AI

Torres v. Rothstein, (D. Nev. 2020).

Torres v. Rothstein (Torres v. Rothstein) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Quigley v. Winter
598 F.3d 938 (Eighth Circuit, 2010)
Meritor Savings Bank, FSB v. Vinson
477 U.S. 57 (Supreme Court, 1986)
Community for Creative Non-Violence v. Reid
490 U.S. 730 (Supreme Court, 1989)
Burlington Industries, Inc. v. Ellerth
524 U.S. 742 (Supreme Court, 1998)
Meyer v. Holley
537 U.S. 280 (Supreme Court, 2003)
United States v. Bill R. Hunter, D/B/A the Courier
459 F.2d 205 (Fourth Circuit, 1972)
Copeland v. Desert Inn Hotel
673 P.2d 490 (Nevada Supreme Court, 1983)
Prell Hotel Corp. v. Antonacci
469 P.2d 399 (Nevada Supreme Court, 1970)
James River Insurance v. Hebert Schenk, P.C.
523 F.3d 915 (Ninth Circuit, 2008)
Craig v. M & O AGENCIES, INC.
496 F.3d 1047 (Ninth Circuit, 2007)
Beliveau v. Caras
873 F. Supp. 1393 (C.D. California, 1995)
Blomgren v. Ogle
850 F. Supp. 1427 (E.D. Washington, 1993)
Pope v. MOTEL 6
114 P.3d 277 (Nevada Supreme Court, 2005)
Wood v. Safeway, Inc.
121 P.3d 1026 (Nevada Supreme Court, 2005)
Noah v. Assor
379 F. Supp. 3d 1284 (S.D. Florida, 2019)