United States v. AION Management, LLC

CourtDistrict Court, D. Delaware
DecidedMarch 18, 2025
Docket1:23-cv-00742
StatusUnknown

This text of United States v. AION Management, LLC (United States v. AION Management, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. AION Management, LLC, (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE UNITED STATES OF AMERICA, ) ) Plaintiff, ) ) and ) . ) FAIR HOUSING PARTNERSHIP OF ) GREATER PITTSBURGH, INC. et al., ) Civil Action No. 23-742 (GBW) ) Plaintiffs-Intervenors, _) ) Vv. / ) ) AION MANAGEMENT, LLC, ef al., ) ) Defendants. ) )

MEMORANDUM OPINION Claudia L. Pare, U.S. DEPARTMENT OF JUSTICE, Wilmington, DE; Kristen Clarke, Carrie Pagnucco, Megan K. Whyte De Vasquez, Jasmin Lott, Lori K. Wagner, U.S DEPARTMENT OF JUSTICE, Washington, DC — Attorneys for Plaintiff

John S. Whitelaw, COMMUNITY LEGAL AID SoclETY, Wilmington, DE; Joseph J. Wardenski, WARDENSKI, P.C., New York, NY; Morgan Williams, D. Scott Chang, NATIONAL FAIR HOUSING ALLIANCE, Washington, DC— Attorneys for Plaintiffs-Intervenors

James E. Huggett, MARGOLIS EDELSTEIN, Wilmington, DE; Emily E. Mahler, MARGOLIS EDELSTEIN, Pittsburgh, PA — Attorneys for Defendants

March 18, 2025 Wilmington, Delaware

AE hin WILLIAMS, U.S. DISTRICT JUDGE: Presently before the Court are Defendants’ Motion to Dismiss Plaintiff's Amended Complaint (D.I. 23) and Defendants’ Motion to Dismiss Plaintiff-Intervenors’ Complaint (D.I. 25). The Court has carefully reviewed both motions and Defendants’ opening briefs (D.I. 24; D.I. 26), Plaintiffs and Plaintiffs-Intervenors’ respective answering briefs (D.I. 28; D.1. 29), Defendants’ reply briefs (D.I. 30; D.I. 31), and the relevant law. For the reasons explained below, Defendants’ Motion to Dismiss Plaintiff's Amended Complaint (D.I. 23) is DENIED and Defendants’ Motion to Dismiss Plaintiff-Intervenors’ Complaint (D.I. 25) is DENIED. I. BACKGROUND The United States of America (“the United States” or “Plaintiff’) and the Fair Housing Partnership of Greater Pittsburgh, Inc., the Housing Equality Center of Pennsylvania, and the National Fair Housing Alliance (collectively, “Intervenors”) sue Defendants AION Management, LLC, Leland Point Owner LP, AP Cosmopolitan LLC, AP Greenspring LLC, AP Livingstone LLC, AION University Village, LLC, AP East Pointe, LLC and AP Hunters Crossing, LLC (collectively, “Defendants”) for violations of the Fair Housing Act (“the FHA”), 42 U.S.C. § 3610 et seq. (D.I. 12; D.I. 22). Defendant AION Management, LLC (“AION”) is a property management company with a principal place of business in Delaware. (D.I. 12 § 5). AION manages the following properties: (1) Alden South Hills Apartment Homes, which is owned by Leland Point Owner, LP; (2) Cosmopolitan Apartment Homes, which is owned by AP Cosmopolitan, LLC, (3) Greenspring Apartment Homes, which is owned by AP Greenspring, LLC, (4) Livingstone Apartment Homes, which is owned by AP Livingstone, LLC, (5) Liberty Pointe Apartment Homes, which is owned by AION University Village, LLC, (6) Hillside Pointe Apartment Homes, which is owned by AP East Pointe, LLC, and (7) Hunters Crossing Apartment Homes, which is owned by AP Hunters

Crossing, LLC (each individually, “the Subject Property,” or collectively, “the Subject Properties”). (Ud. J] 6-12). The Fair Housing Partnership of Greater Pittsburgh (“FHP”), the Housing Equality Center of Pennsylvania (“HECP”), and the National Fair Housing Alliance (“NFHA”) are organizations dedicated to promoting fair housing advocacy and enforcement (together, “the Organizations” or “Intervenors”). (D.I. 22 §§ 13-15). In 2019, FHP received a report of a tenant with a disability who was allegedly forced to move out of an AION property after the tenant’s request for a reasonable accommodation for the tenant’s disability was denied. (Ud. 424). Asa result, in early 2020, the Organizations began a joint investigation into the Subject Properties’ reasonable accommodation practices. (D.I. 12 J 18). More specifically, the Organizations “sought to determine if Defendants were making units available to tenants or applicants who have a disability- related need for an assigned parking space.” (J/d.). Throughout 2020, the Organizations deployed testers! who sought to obtain assigned parking spaces from the Subject Properties. “Defendants told testers that they would not assign parking spaces to tenants with disabilities” and “no AION employee responded to a tester’s reasonable accommodation request by asking questions about the tester’s or their family member’s individual needs or circumstances.” (d. J 19). Due to Defendants’ alleged actions and “policies,” the Organizations’ missions were frustrated, and the Organizations diverted their time and resources to counteract Defendants’ actions. (See id. Jj 40-41; see also D.I. 22 4 62-66). On April 7, 2021, the Organizations filed a complaint with the United States Department of Housing and Urban Development (“HUD”). (D.L 12 42). The Secretary of HUD

: ““Testers’ are individuals who, without an intent to rent or purchase a home or apartment, pose as renters or purchasers for the purpose of collecting evidence of unlawful [housing] practices.” Havens Realty Corp. v. Coleman, 455 U.S. 363, 373 (1982).

investigated the complaint and determined that reasonable cause existed to believe that Defendants had violated several provisions of the FHA. Accordingly, on February 24, 2023, the Secretary of HUD issued a Charge of Discrimination (“the Charge”) alleging violations of 42 U.S.C. §§ 3604(c), 3604(f)(1), 3604(£)(2), and 3604(f)(3)(B) and their implementing regulations. (/d. | 44). Pursuant to 42 U.S.C § 3612(a) and § 3612(0)(1), Defendants elected to resolve the Charge through civil action in a federal district court. Defendants and the United States also entered into a tolling agreement that extended the deadline for tolling to July 7, 2023. (id. { 46). On that date, the United States filed its initial complaint. Relevant here, on October 10, 2023, the United States filed a First Amended Complaint (“the FAC”) (D.I. 12). The FAC alleges violations of 42 U.S.C. §§ 3604(c), 3604(H(1), 3604(f)(2), and 3604(f)(3)(B). (Ud. § 48). The United States seeks a declaration, an injunction, an award of money damages, and any other award as the interests of justice may require. (/d. at 15), On November 29, 2023, the Organizations filed a Motion to Intervene (D.I. 16) and, on February 22, 2024, the Court granted the Motion to Intervene. (D.I. 20). The Intervenors filed a complaint on February 23, 2024 (D.I. 22) (“the Intervenors’ Complaint”). The Intervenors’ Complaint likewise alleges violations of 42 U.S.C. §§ 3604(6), 3604(f)(1), 3604(f)(2), and 3604(f)(3)(B). Ud. 471).

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Bluebook (online)
United States v. AION Management, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-aion-management-llc-ded-2025.