United States v. Cochran

79 F. Supp. 3d 578, 2015 U.S. Dist. LEXIS 4311, 2015 WL 171801
CourtDistrict Court, E.D. North Carolina
DecidedJanuary 14, 2015
DocketNo. 4:12-CV-220-FL
StatusPublished
Cited by4 cases

This text of 79 F. Supp. 3d 578 (United States v. Cochran) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Cochran, 79 F. Supp. 3d 578, 2015 U.S. Dist. LEXIS 4311, 2015 WL 171801 (E.D.N.C. 2015).

Opinion

ORDER

LOUISE W. FLANAGAN, District Judge.

This matter comes before the court on defendants’ motion in limine to exclude certain arguments and contentions relating to defendants’ asserted joint and several liability and liability of Richard Cochran (DE 177). Plaintiff responded to the motion, and in this posture the issues raised are ripe for ruling. For the following reasons, the court grants the motion.

BACKGROUND

In September 2012, plaintiff filed complaint asserting a claim under the Fair Housing Act. (“FHA”), 42 U.S.C. §§ 3601-3619, against individual defendant William I. Cochran, III (‘William Cochran”) and the various entities for which he has managed residential rental properties, namely defendants WRC, LLC (“WRC”); EKP, LLC (“EKP”); and EmLan Properties, LLC (“EmLan”). Plaintiff seeks damages on behalf of certain tenants and associated [581]*581persons asserted to be “aggrieved persons” allegedly injured by defendants’ discriminatory conduct. On September 19, 2013, plaintiff filed, with leave of court, an amended complaint, adding Richard A. Cochran (“Richard Cochran”), William Cochran’s brother, as a defendant.

As pertinent here, the amended complaint includes the following allegations regarding the parties and their conduct. “In his establishment of policies and procedures and his management activities relating to the rental properties, William Cochran acted as the agent of Defendant [WRC], [EmLan], [EKP], and [Richard Cochran].” (Am. Compl. ¶5). ‘WRC rented its properties to tenants through the actions of its agent, William Cochran.” (Id. ¶ 6). “EKP rented its properties to tenants through the actions of its agent, William Cochran.” (Id. ¶ 7). “EmLan rented its properties to tenants through the actions of its agent, William Cochran.” (Id. ¶ 8). “Richard Cochran and William Cochran rented their property(-ies) to tenants through the actions of William Cochran.” (Id. ^9).

“Since at least 2003, William Cochran has maintained unlawful discriminatory policies and engaged in unlawful discrimb natory practices at the residential properties owned by the Defendants, because of race or color.” (Id. ¶ 11). “The Defendants are liable for the discriminatory conduct of their agent and manager, William Cochran, described above.” (Id. ¶ 13). Plaintiff seeks relief including an award of “monetary damages to each person injured by the Defendants’ discriminatory conduct.” (Id. p. 6).

In its brief in opposition to summary judgment, plaintiff summarized its theory of liability for defendants in this case. In particular, it stated, “IWilliam] Cochran, acting as an agent of the LLCs, primarily handles the daily management of residential rental properties that are or were owned by Defendants.” (DE 121 at 2). “Defendants [WRC], [EKP], [EmLan] and [Richard Cochran] are each vicariously lia-, ble for the actions of William Cochran as manager of the properties each owns.” Id. It confirmed, further, “[i]ndeed, Defendants do not raise any arguments to the contrary in their motion, nor could they— there is no factual dispute that William Cochran had primary responsibility for all aspects of the day-to-day rental and maintenance of the Defendants’ properties.” (Id. at 3).

At pretrial conference, held December 23, 2014, defendants voiced • objection to inclusion of plaintiffs contentions in proposed joint pre-trial order that William Cochran and Richard Cochran commingled funds between and amongst the LLC defendants, their personal funds, and additional businesses, Cochran Builders and Build Tech, Inc. (Pretrial Conf. Tr. at 71). Defendants objected to the inclusion of the contention that all of the LLC defendants could be held jointly and severally liable, premised on alter ego or piercing the corporate veil, for all of the actions taken by William Cochran, where that theory of liability was not pleaded. (Id. at 66-68, 70-71). Defendants also objected to the contention that Richard Cochran could be held liable for acts of William Cochran directed at properties other than the one he owns. (Id. at 68-70).

The court directed defendants to file an appropriate motion by January 5, 2015, and plaintiff to file a response in opposition by January 9, 2015, a matter of days before the scheduled commencement of trial on January 13, 2015, now underway. Defendants filed their motion on January 5, supported by memorandum filed January 6, which motion specifically seeks exclusion from trial “any argument, allegation, jury instruction, or factual contention” that—

[582]*582(1) William I. Cochran, Ill’s co-defendants (EKP, LLC; EmLan Properties, LLC; WRC, LLC; and Richard A. Cochran) may be held jointly and severally liable for William’s purportedly wrongful conduct, and/or
(2) that Richard A. Cochran may be held vicariously liable for actions that occurred at or relate to properties other than the one property in which Richard holds a direct ownership interest.

(DE 177). In opposition, the government contends it has properly pleaded and will show that “all Defendants are jointly and severally liable for [William Cochran’s] discriminatory acts as a matter of law.” (DE 186 at 1). In addition, it contends that all defendants “are jointly and severally liable for the discriminatory acts attributable to [a] single integrated enterprise, because Defendants were on notice of their potential liability including the facts alleging a failure to follow corporate formalities sufficient to pierce the corporate veil.” Id. at 2.

At the start of trial, the court entered an amended joint pre-trial order including the following stipulation:

At all times relevant to this matter, Defendant William I. Cochran, III (hereinafter “Defendant William Cochran”) acted as the manager and primary decision-maker for the properties owned by EKP, LLC, WRC, LLC, and EmLan Properties, LLC. Defendant William Cochran’s decision-making authority included the selection of tenants, when and what repairs would be made to the individual properties, and the eviction of tenants. His duties included collecting rent, receiving requests for maintenance, performing, or hiring contractors to perform, repairs or maintenance, and determining whether to credit tenants for repairs they made themselves.

(Pretrial Order at 3). The pretrial order includes the following factual contentions by plaintiff:

e. Defendant William Cochran, as manager of the properties owned by Defendants EKP, LLC, WRC, LLC, and Em-Lan Properties, LLC, comingled funds between and amongst the LLC Defendants and his personal funds, including
his personal business, Cochran Builders. f. EKP, LLC, WRC, LLC, and EmLan Properties, LLC were insufficiently capitalized.
g. Defendant Richard Cochran comin-gled his personal funds and the funds of his company Build Tech, Inc. with the funds of Defendant WRC, LLC.
h. Defendant William I. Cochran, III operated WRC, LLC, EKP, LLC, and EmLan Properties, LLC as a single, integrated enterprise.

(Id. at 7).

In addition, the pretrial order includes the following issues asserted by plaintiff:

a. Defendants EKP, LLC WRC, LLC, EmLan Properties, LLC and Richard A.

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

Related

Earls v. Forga Contracting, Inc.
W.D. North Carolina, 2020
Frechette v. Zia Taqueria LLC
D. South Carolina, 2020
Sparks v. Oxy-Health, LLC
134 F. Supp. 3d 961 (E.D. North Carolina, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
79 F. Supp. 3d 578, 2015 U.S. Dist. LEXIS 4311, 2015 WL 171801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-cochran-nced-2015.