Valencia et al v. City of Springfield, Illinois
Filing
112
OPINION: The Motion of Defendant City of Springfield for Partial Summary Judgment on the issues of standing and damages (d/e 89 ) is DENIED. The Motion of Plaintiffs Individual Advocacy Group, Mary B. Valencia, as the Independent Administrator of t he Estate of A.D., and B.A. for Partial Summary Judgment as to the liability of Defendant City of Springfield [d/e 92] is GRANTED. The Motion of Defendant City of Springfield to Strike Plaintiffs' Summary Judgment Motion (d/e 97 ) is DENIED. SEE Written Opinion. Entered by Judge Richard Mills on 3/16/2020. (ME, ilcd)
E-FILED
Monday, 16 March, 2020 01:19:08 PM
Clerk, U.S. District Court, ILCD
IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF ILLINOIS
SPRINGFIELD DIVISION
MARY B. VALENCIA, et al.,
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Plaintiffs,
v.
CITY OF SPRINGFIELD, ILLINOIS,
Defendant,
UNITED STATES OF AMERICA,
Plaintiff,
v.
CITY OF SPRINGFIELD, ILLINOIS,
Defendant.
Case No. 16-3331
Consolidated with
Case No. 17-3278
OPINION
RICHARD MILLS, United States District Judge:
This is a consolidated action.
Each party has moved for summary judgment.
The Court now considers the Motion of Plaintiffs Individual Advocacy Group,
Mary B. Valencia, as the Independent Administrator of the Estate of A.D., and B.A.
1
for Summary Judgment as to the liability of Defendant City of Springfield. 1 Those
Plaintiffs incorporate and rely upon Plaintiff United States of America’s Motion for
Summary Judgment on liability, which the Court granted in an Order entered on
March 3, 2020.
The Court also considers Defendant City of Springfield’s Motion for Partial
Summary Judgment on the issues of standing and damages.
I.
INTRODUCTION
In 2014, three men with severe disabilities moved into a single-family
dwelling at 2328 S. Noble Avenue, which is in a residential neighborhood in
Springfield, Illinois.
Plaintiff Individual Advocacy Group, Inc. (“IAG”) has
delivered in-home support services to the residents of 2328 S. Noble since it opened
in 2014. IAG is a non-profit organization with the mission of providing personal
services to persons with disabilities which enable those persons to live in community
settings. The owners of 2328 S. Noble are Christine and Robyn Hovey, through a
corporation they formed and own.
The Plaintiffs filed this case when Defendant City of Springfield (“the City”)
refused to grant a zoning permit to allow a group home for three men with
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Pending also is the motion of Defendant City of Springfield to strike the motion of Plaintiffs Individual
Advocacy Group, Estate of A.D. and B.A. for summary judgment. Although the Plaintiffs’ motion
violates the local rule because it does not include a numbered list of undisputed material facts, the
Defendant is able to respond to the assertions contained in the section titled “Undisputed Facts.”
Accordingly, the Court will deny the Defendant’s motion to strike.
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intellectual and physical disabilities to remain open. The Plaintiffs allege the City
violated their clearly established rights under the Fair Housing Act, 42 U.S.C. §§
3601 et seq., and its implementing regulations (“FHA”); Title II of the Americans
with Disabilities Act, 42 U.S.C. §12131 et seq. and its implementing regulations
(“ADA”); and Section 504 of the Rehabilitation Act, 29 U.S.C. § 794 and its
implementing regulations.
The Plaintiffs claim they are entitled to summary
judgment as to liability.
The City acknowledges that the zoning ordinance as applied in this case
violated the FHA, the ADA and the Rehabilitation Act. However, that admission
alone does not establish the Plaintiffs’ right to recover damages for such violation.
The City contends that Plaintiffs have failed to establish standing as “aggrieved
persons” under 42 U.S.C. § 3613, and thus are not entitled to summary judgment on
liability.
The City’s motion concerns IAG on the issue of standing to sue and whether
it suffered any provable injury in fact proximately resulting from the City’s
application of its zoning ordinance. The City’s motion is also directed at Plaintiff
Mary Valencia in her representative capacity of a deceased former resident of the
home at 2328 Noble, as well as current disabled resident and Plaintiff, B.A., who
moved into the home on November 2, 2017, after the events complained of in the
3
amended complaint, and whether those Plaintiffs suffered any provable injury in fact
proximately resulting from the City’s actions.
The Plaintiffs contend that IAG has made legitimate claims of direct injury to
its organization because of the City’s conduct. The Plaintiffs assert the City has
misrepresented the applicable law and relies on facts that are disputed. Accordingly,
the Plaintiffs claim the City’s motion for partial summary judgment should be
denied.
II.
FACTUAL BACKGROUND
The City of Springfield is a municipality. In August 2016, the City sought to
shut down the Noble home because it was located on the same block as another home
for individuals with disabilities operated by Sparc in violation of the City’s spacing
rule, which provides that no home for unrelated persons with disabilities may be
located in a residential district if it is within 600 feet of another home for persons
with disabilities. However, the City’s Code allows a “family” to live in any
residential district. Under Section 155.001, a family is defined as “persons each
related to one another by blood, marriage or adoption” or “a group of not more than
five persons not all so related.” The three residents of 2328 Noble qualify as a
“family” under that definition, given that there are less than five individuals.
Despite the statutory language, the City forced the Plaintiffs to apply to the
Zoning and Planning Commission for a Conditional Permitted Use (“CPU”) permit.
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On October 7, 2016, IAG applied for a CPU which included a request for a
reasonable accommodation to the City’s rules, policies and practices if the CPU was
not granted. After various hearings, the City ultimately voted to deny the CPU and
evict the Noble home residents from their home. The denial of the CPU occurred
on a vote of the City Council of the City of Springfield on December 20, 2016.
Plaintiffs A.D. and IAG filed their initial complaint two days later.
After filing their complaint, the Plaintiffs moved for a preliminary injunction
to preclude the City from evicting the residents while this action was pending. The
Court granted the motion for preliminary junction. The United States Court of
Appeals for the Seventh Circuit upheld the Court’s preliminary injunction Order on
appeal.
In Counts One, Two and Three of the amended complaint, the Plaintiffs allege
violations of the FHA, Title II of the ADA and the Rehabilitation Act, respectively,
all resulting from zoning ordinance enforcement activities which culminated in the
City Council’s denial of the CPU to allow a group home for disabled persons at 2328
S. Noble.
There is no allegation in the amended complaint that the decision of the
Aldermen was influenced by a broad base of taxpayers of the City espousing
discriminatory animus. There is no evidence in the record of the City Council
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meeting regarding the CPU that the decision of the Aldermen was influenced by a
broad base of taxpayers of the City espousing discriminatory animus.
Charlene A. Bennett, Ph.D., is the founder and CEO of Plaintiff IAG and was
a Rule 30(b)(6) designee of IAG. She testified its mission was to “Provide ongoing
support to children and adults with specialized needs and to do whatever it takes so
they can be living a quality of life in the community.” The personal services
provided to the residents of the Noble home by IAG staff include eating, bathing,
dressing, food preparation, shopping, home maintenance, cleaning and managing the
residents’ medical needs.
The City claims IAG is not the owner nor the lessee of 2328 S. Noble or any
of the group homes the organization operates. The Plaintiffs dispute this assertion
in part because IAG is a party to the lease of 2328 S. Noble.
Plaintiff Mary B. Valencia was the guardian of A.D., a former resident of 2328
S. Noble, who lived at the home from March 2014 until his death in September
2017. After A.D.’s death, Valencia became the Independent Administrator of A.D.’s
estate. Plaintiff B.A. moved into the home on November 2, 2017.
The residents of 2328 S. Noble are the lessees of those premises. IAG is also
listed as a lessee on the lease.
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Residents in group homes serviced by IAG, including the Noble home, select
the homes in which they live. As of February 2, 2019, the date of Charlene Bennett’s
deposition, IAG operated 6 group homes in Springfield.
On February 22, 2018, IAG filed its 2016 tax return for the fiscal year ending
June 30, 2016. On that return, IAG stated it did not become aware of any “significant
diversion of the organization’s assets.” The City alleges IAG’s claim for damages
for diversion of resources is based upon estimates of time spent by officials on
matters relating to this litigation and for relocating residents of a former group home
in Springfield. The Plaintiffs allege the claim also includes meeting with staff,
residents and family members to try to “calm people down” and talk everyone
through the discrimination they were experiencing at the Pinehurst 2 and Noble
homes.
The amounts claimed are 10% of the CEO’s salary (Dr. Bennett), 3% of the
COO’s salary (Dr. David Brooks) and 5% of the regional director’s salary (Beth
Jones). No time records were kept quantifying or verifying these estimates.
Citing Dr. Bennett’s testimony, the City claims IAG alleges it decided not to
open additional homes in Springfield because of the “level of meanness” and
“gossip” from neighbors and “elected officials” and because she is “generally very
confused” about the requirements and rules in Springfield. Also relying on Dr.
2
IAG also operated a group home on Pinehurst Street that has since closed.
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Bennett’s testimony, the Plaintiffs dispute the City’s assertion and state that IAG did
not open additional homes in Springfield because the discriminatory zoning
ordinance is still in effect. Dr. Bennett cannot expand the area while the “confusing”
law is still the law in Springfield. She does not want to subject future potential
residents to what occurred at both Pinehurst St. and at 2328 South Noble.
The City claims most of the negative reaction from neighbors and others
happened at the group home on Pinehurst St., not at 2328 Noble. The Plaintiffs
dispute this assertion. The cited deposition testimony says the negative reaction
from the neighbors occurred immediately at Pinehurst, but at Noble, the harassment
did not start until the City posted the sign at the property announcing the zoning
commission meeting. Dr. Bennett testified that she did not know if these negative
comments have continued in Springfield.
IAG’s claim for damages for lost profits or lost economic opportunities is
based upon an “estimate [that] it would have opened at least 4 homes serving 16
additional residents.” The City claims this “estimate” of the number of homes and
residents is based upon internal discussions among IAG officers about “what we
want to do” in Springfield and there is no documented business plan or model for
future expansion. The Plaintiffs dispute the allegations, stating Dr. Bennett testified
IAG planned to open ten homes in the Springfield region because they needed to
balance the region by adding additional revenue to pay for the fixed costs. IAG’s
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typical model is four individuals per home. The Plaintiffs further claim that while
there was no written plan, the organization has an action plan of ten homes with four
individuals each.
IAG has opened two homes in Springfield since this litigation began and now
operates a total of six. IAG states it had already determined locations for the four
additional homes it would have opened but for the illegal enforcement of the City’s
zoning ordinance. IAG gets a significant number of referrals for individuals looking
for CILA arrangements in Springfield. Peoria, which is comparable in size to
Springfield, gets a similar number of referrals. IAG has opened seven homes in
Peoria in one and a half years.
The City claims IAG has not received any negative feedback from the opening
of the two homes in Springfield. The Plaintiffs dispute this allegation in part, stating
that the first home initially housed one person. Each home now houses only two
people because IAG is concerned that placing an additional two individuals in each
home would cause conflict with the zoning board as there is no way of knowing if
another CILA is within 600 feet and the discriminatory zoning ordinance is still in
effect. Those homes are not breaking even financially.
Dr. Bennett testified IAG has had homes with one, two, three and four
individuals. She cautioned it is no longer a home if too many people reside there.
Therefore, Dr. Bennett testified that four individuals in the home is ideal from an
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economic standpoint, even though it means IAG is only breaking even. IAG has
roughly 250 individuals whom it serves living in approximately 80 different homes,
averaging approximately 3.225 residents per home.
The Plaintiffs state IAG is beholden to the State of Illinois’ payment model,
which is based on shared revenue. Regardless of the amount of homes IAG operates
in any given region, there are fixed costs. IAG must hire a nurse for the region
regardless of how many homes it operates there. The more homes IAG is able to
operate in a specific region, the more profit they can make because they can spread
the fixed costs across several homes while collecting revenue for each individual
they serve. IAG claims it has been unable to grow its business in Springfield because
of the existing discriminatory zoning law. Dr. Bennett testified that she knows how
much emotional and fiscal capital is required to close a home the City has deemed
to be in violation of its zoning code because she experienced it first-hand when the
City shut down the Pinehurst home.
Ms. Valencia testified that she did not discuss the zoning proceeding with
A.D. and does not believe he knew of the proceedings. After the zoning petition was
denied, Ms. Valencia did not take any action to look for a new home for A.D. beyond
a telephone call to a state agency.
On June 5, 2018, the City filed its amended answers in which the City
admitted its “zoning ordinance applicable to group homes for disabled persons, as
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in effect on the filing dates of the complaints, discriminated against the residents of
the group home located at 2328 Noble Ave. . . . on the basis of their disability in
violation of federal law.” At the time of the Plaintiffs’ motion, the City had not
amended the facially discriminatory zoning ordinance. Accordingly, IAG is still
bound by the discriminatory zoning ordinance or risks facing zoning actions by the
City’s zoning ordinance.
III.
DISCUSSION
Legal standard
Summary judgment is appropriate if the motion is properly supported and
“there is no genuine dispute as to any material fact and the movant is entitled to
judgment as a matter of law.” See Fed. R. Civ. P. 56(a). The Court construes all
reasonable inferences in favor of the non-movant. See Siliven v. Indiana Dept. of
Child Services, 635 F.3d 921, 925 (7th Cir. 2011). To create a genuine factual
dispute, however, any such inference must be based on something more than
“speculation or conjecture.” See Harper v. C.R. England, Inc., 687 F.3d 297, 306
(7th Cir. 2012) (citation omitted). Because summary judgment “is the put up or
shut up moment in a lawsuit,” a “hunch” about the opposing party’s motives is not
enough to withstand a properly supported motion. See Springer v. Durflinger, 518
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F.3d 479, 484 (7th Cir. 2008). Ultimately, there must be enough evidence in favor
of the non-movant to permit a jury to return a verdict in its favor. See id.
CITY OF SPRINGFIELD’S MOTION FOR PARTIAL SUMMARY JUDGMENT
The City directs this motion at IAG on the issue of its standing to sue and
whether it suffered any provable injury in fact proximately resulting from the City’s
application of its zoning ordinance. The City’s motion is also directed at Mary B.
Valencia, as the former guardian of and the current Independent Administrator of
the Estate of A.D., in her representative capacity, and current disabled resident, B.A.,
who moved into 2328 S. Noble on November 2, 2017, after the events complained
in the amended complaint. Specifically, the City’s motion concerns whether those
Plaintiffs suffered any provable injury in fact proximately resulting from the City’s
actions.
IAG’s standing
The City first claims that Plaintiff IAG lacks standing to sue because it has
not suffered an injury-in-fact. The FHA allows any “aggrieved person” to file a civil
action seeking damages for a violation of the statute. 42 U.S.C. §§ 3613(a)(1)(A),
3613(c)(1). An “aggrieved person” includes “any person who claims to have been
injured by a discriminatory housing practice.” Id. § 3602(i)(1).
The United States Supreme Court addressed organizational standing in Lujan
v. Defenders of Wildlife, 504 U.S. 555 (1992):
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First, the plaintiff must have suffered an “injury in fact”—and invasion
of a legally protected interest which is (a) concrete and particularized; and
(b) “actual or imminent, not ‘conjectural’ or ‘hypothetical.’” Second, there
must be a causal connection between the injury and the conduct complained
of—the injury has to be “fairly . . . trace[able] to the challenged action of the
defendant, and not . . . the result [of] the independent action of some third
party not before the court.” Third, it must be “likely,” as opposed to merely
“speculative,” that the injury will be “redressed by a favorable decision.”
Id. at 560-61 (internal citations and footnote omitted, alterations in original). The
City contends IAG has suffered no damages and therefore has no “injury in fact” as
contemplated by the Court in Lujan. However, the City notes the Seventh Circuit
has held that the mere act of filing a lawsuit under the FHA constitutes a diversion
of resources sufficient to establish standing. See Bellwood v. Dwivedi, 895 F.2d
1521, 1526 (7th Cir. 1990).
Accordingly, the City acknowledges that IAG has standing under current
Seventh Circuit law to which this Court is bound. For purposes of a potential appeal,
however, the City has not waived its right to raise the standing argument in order to
suggest that the Seventh Circuit reconsider its holding in Bellwood.
IAG also claims it is not asserting standing on the sole basis that it filed suit
in this case. IAG states that in addition to a diversion of resources claim, it also
raises other injuries that are caused directly by the illegal zoning ordinance at issue
in this case. These include the lost profits caused by IAG’s inability to pursue
additional housing opportunities, the chilling effect of the City’s interpretation of its
zoning ordinances as it relates to families and family care residences; as well as the
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frustration of IAG’s mission of providing integrated housing opportunities for
persons with disabilities.
There is at least a factual dispute regarding whether IAG is seeking damages
that are directly related to its organization. It is worth noting the City allowed IAG
to participate in the various zoning hearings for both the Pinehurst and Noble
properties. Although the individuals lease the home, IAG is listed as a party on the
lease.
The City alleges that, except for filing the lawsuit, IAG has produced no
evidence that resources were diverted in an objective way or their mission was
frustrated in any respect. The home at 2328 Noble has been operating without
interference of any kind since the CPU was denied. The City claims IAG has not
presented any evidence or claim of direct injury resulting from the City’s actions.
The Plaintiffs claim that IAG expended substantial time and resources
applying for the CPU and participating in the zoning process, which included
retaining an expert witness and legal counsel. IAG states that it also expended time
and resources meeting with staff and family member in order to address issues
arising from the process. IAG has expended significant time and resources related
to this lawsuit. The Plaintiffs claim that, absent the City’s actions, IAG’s resources
would have been devoted to IAG’s core mission of supporting individuals with
disabilities in the community.
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The City notes that IAG has claimed the following amounts: 10% of the
CEO’s salary (Dr. Bennett), 3% of the COO’s salary (Dr. David Brooks), and 5% of
the regional director’s salary (Beth Jones), amounting to $46,900.00 over a two-year
period after the CPU was denied and continuing at $1,954.17 per month indefinitely.
IAG did not produce time sheets or work records in support of these assertions. The
City contends these are estimates of time allegedly diverted and unsupported by any
documentation of actual time spent.
The City relies on City of Chicago v.
Matchmaker Real Estate Sales Center, Inc., 982 F.2d 1086 (7th Cir. 1992), wherein
the Seventh Circuit held the magistrate judge committed error where it appeared he
merely doubled the compensatory damage award in awarding frustration of purposes
damages, without providing any other basis for the award. See id. at 1099.
As the Plaintiffs note, however, there do not appear to be any cases that hold
an organization is required to produce time records in order to recover diversion of
resources damages under the FHA. In United States v. Balistrieri, 981 F.2d 916 (7th
Cir. 1992), a fair housing organization was awarded damages based on the
organization director’s testimony about the staff time spent on their efforts and the
cost of those efforts—not based on time records. See id. at 933. IAG states that Dr.
Bennett and other IAG staff members can provide similar testimony about the time
and resources it diverted to legal efforts and the turmoil caused within the
organization because of the City’s actions. Those individuals can provide reasonable
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estimates based on first-hand testimony and evidence in the record, leaving any
potential amount to be determined by the jury.
Lost profits
The City alleges IAG’s claim of lost profits is barred as speculative. In TAS
Distributing v. Cummins Engine Co., 491 F.3d 625 (7th Cir. 2007), the Seventh
Circuit observed that damages for lost profits are “inherently uncertain and incapable
of calculation with mathematical precision.” Id. at 632-33. Thus, “the evidence
presented must afford a reasonable basis for the computation of damages.” Id. at
633.
The City alleges that IAG’s speculation as to the future of its business in
Springfield is not supported by the income statements from existing group homes.
Moreover, two new group homes opened in Springfield since the beginning of this
litigation have had negative net revenue. Accordingly, the City contends that IAG’s
projections for lost revenue do not approach even a minimally reasonable degree of
certainty, particularly in their first two years of operation.
If a plaintiff presents evidence it has suffered the sort of injury that would be
the expected consequence of a defendant’s wrongful conduct, it has done enough to
withstand summary judgment on the ground of absence of causation. See BCS
Services, Inc. v. Heartwood 88, LLC, 637 F.3d 750, 758 (7th Cir. 2011). IAG claims
it has presented evidence in support of its claim that its business was directly affected
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by the City’s illegal actions. Before this lawsuit, IAG says it intended to open around
ten homes. It makes sense economically for the City to open more homes that house
four individuals each because IAG is subject to the State of Illinois’ payment model,
which is based on shared revenue. The more homes IAG is able to operate in a
particular region, the more profit they are able to generate because they can spread
fixed costs—such as a nurse for the region—across several homes while collecting
revenue.
Dr. Bennett testified IAG has not been able to grow its business in Springfield
because of the existing, discriminatory zoning law. The Plaintiffs allege it is
understandable she would not want to risk growing IAG to scale while the
discriminatory zoning law that was invoked to close Pinehurst and to attempt to close
2328 S. Noble remains in effect. IAG states that the reason neither of the new homes
house more than two people is because IAG does not want to risk further zoning
proceedings. IAG further claims it is still unable to provide support to the countless
individuals who wish to live in Springfield who have been referred to IAG since the
beginning of this litigation.
Upon construing all reasonable inferences in favor of non-movant IAG, the
Court concludes there is a genuine issue of material fact regarding whether IAG is
entitled to lost profits. The City may be correct that IAG cannot meet its projections
for lost revenue. However, the evidence offered by IAG about its plans and business
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model as well as the testimony about the effects of the zoning ordinance is sufficient
to create a factual dispute regarding the issue of lost profits. Accordingly, the Court
will deny the motion on this issue.
Other arguments
The City next claims that it did not prevent IAG from opening new group
homes. In fact, IAG did open two new group homes.
The City alleges that its denial of a CPU to the Noble home because it was
within 600 feet of another group home had no bearing or impact on IAG’s other
existing homes or any it might have opened.
Upon drawing all reasonable inferences in favor of the non-movant, the Court
finds there is a genuine issue of material fact based on Dr. Bennett’s testimony
regarding IAG’s decision not to open additional homes in Springfield. Dr. Bennett
testified more groups were not opened because the discriminatory zoning is still in
effect and she did not want to subject potential residents to what occurred on
Pinehurst Street and at 2328 Noble. Additionally, Dr. Bennett testified that each of
the new group homes houses only two people because of IAG’s concern that placing
an additional two individuals in the home could run afoul of the zoning ordinance if
another CILA is within 600 feet of the group home.
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Based on the foregoing, a jury could determine that IAG would have opened
additional group homes and/or placed more individuals in existing group homes but
for the discriminatory zoning ordinance.
The City also contends that the individual Plaintiffs have not proved any
damages. In its previous Order on the City’s motion for summary judgment, the
Court determined there was a genuine issue of material fact on this issue as to some
of the Plaintiffs.
B.A. moved into the house after this lawsuit commenced and after any action
of the City regarding the home’s zoning. The City contends he cannot claim any
damages resulting from the City’s actions. While that is certainly a relevant
consideration, the Court is unable to conclude that summary judgment is warranted
when there has been no final resolution and the discriminatory ordinance continues
to exist.
Accordingly, the Court will deny the City’s motion for summary judgment.
PLAINTIFFS’ SUMMARY JUDGMENT MOTION AS TO LIABILITY
Plaintiffs IAG, Mary B. Valencia, as the Independent Administrator of the
Estate of A.D., and B.A. move for partial summary judgment as to the liability of
the City of Springfield.
In support of the motion, the Plaintiffs note that Congress has enacted various
acts with the purpose of eradicating discrimination against individuals with
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disabilities in the United States. These laws include the FHA, 42 U.S.C. §§ 3601 et
seq., and its implementing regulations; Title II of the ADA, 42 U.S.C. § 12131 et
seq., and its implementing regulations; and Section 504 of the Rehabilitation Act, 29
U.S.C. § 794, and its implementing regulations. Section 504 of the Rehabilitation
Act broadly prohibits discrimination against individuals with disabilities in all
federally funded programs or activities, such as the federally assisted housing
programs at issue in this case. See 29 U.S.C. § 794. The FHA makes it unlawful
“[t]o discriminate in the sale or rental, or to otherwise make unavailable or deny, a
dwelling to any buyer or renter because of a handicap of . . . a person residing in or
intending to reside in that dwelling. . . .” 42 U.S.C. § 3604(f)(1)(B). The Act also
prohibits discrimination against such individuals in the “terms, conditions or
privileges of sale or rental of a dwelling, or in the provision of services or facilities
in connection with such dwelling.” Id. § 3604(f)(2). “Congress explicitly intended
for the [Fair Housing Amendments Act] to apply to zoning ordinances and other
laws that would restrict the placement of group homes” for persons with disabilities.
Oconomowoc Residential Programs v. City of Milwaukee, 300 F.3d 775, 782 (7th
Cir. 2002) (citations omitted). Due to the similarities between the statutes regarding
protections for individuals with disabilities related to housing, courts have
interpreted and applied the anti-discrimination provisions in each of the statutes in
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the same way, with only minor differences. See e.g., Oconomowoc, 300 F.3d at 78283; Hovsons, Inc. v. Township of Brick, 89 F.3d 1096, 1101 (3d Cir. 1996).
The Plaintiffs note the City “admitted liability” while claiming that it did not
act with any “specific intent to discriminate.” They state this is problematic because
the Plaintiffs’ claim that the City violated the FHA, the ADA and Section 504
because it maintained and enforced a facially discriminatory zoning code and
refused to grant Plaintiffs a CPU or a reasonable accommodation that would have
allowed them to remain in their home. A disparate treatment claim such as these
inherently involves an intent to discriminate. Hayden ex rel. A.H. v. Greenburg
Community School Corp., 743 F.3d 569, 579 (7th Cir. 2014) (citing UAW v. Johnson
Controls, Inc., 499 U.S. 187, 199 (1991) (“the absence of a malevolent motive does
not convert a facially discriminatory policy into a neutral policy with a
discriminatory effect”).
The City claims that although it has admitted that its zoning ordinance violated
the FHA, ADA and Rehabilitation Act, the Plaintiffs have not established standing
as “aggrieved persons” under 42 U.S.C. § 3613. The FHA provides that in a case
brought by private individuals under § 3613, a court “may award . . . actual and
punitive damages” to aggrieved persons. 42 U.S.C. § 3613. The FHA defines an
“aggrieved person” to include any person who “claims to have been injured by a
discriminatory housing practice” or who believes he “will be injured by a
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discriminatory housing practice that is about to occur.”
42 U.S.C. § 3602(i). A
“discriminatory housing practice” is “an act that is unlawful under section 3604,
3605, 3606, or 3617” of the FHA. 42 U.S.C. § 3602(f). The Plaintiffs note that
sections 3604, 3605 and 3606 address discrimination in the sale or rental of housing,
residential real-estate related transactions and provision of brokerage services,
respectively, and section 3617 prohibits interference, coercion or intimidation
respecting any right granted by those sections. See 42 U.S.C. §§ 3604, 3605, 3606
& 3617.
The Plaintiffs contend they have alleged sufficient facts to establish they are
“aggrieved persons” under the FHA based on: (1) the City’s determination the
residents of 2328 S. Noble could not continue to live in their home because they are
disabled; and (2) the City’s determination IAG could no longer serve the residents
of 2328 S. Noble because the individuals “residing in or intending to reside in” the
home have disabilities.
As the Plaintiffs allege, the fact that the City did not seek to prevent the Noble
home from operating while this action is pending does not cure the harm that
resulted. Courts have determined that “a party should not be able to evade judicial
review, or to defeat a judgment, by temporarily altering questionable behavior.”
Pleasureland Museum, Inc. v. Beutter, 288 F.3d 988, 999 (7th Cir. 2002) (quoting
City News & Novelty, Inc. v. City of Waukesha, 531 U.S. 278, 284 n.1 (2001). “[A]
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defendant’s voluntary cessation of a challenged practice does not deprive a federal
court of its power to determine the legality of the practice.” Friends of the Earth,
Inc. v. Laidlaw Environmental Services (TOC), Inc., 528 U.S. 167, 189 (2000)
(quoting City of Mesquite v. Aladdin’s Castle, Inc., 455 U.S. 283, 290 (1982)).
In asserting they constitute “aggrieved parties,” the Plaintiffs claim the only
reason the residents were not evicted from the Noble home is because the Court
entered a preliminary injunction. Without the injunction, the individual Plaintiffs
could not live in their chosen home in their community and IAG could not pursue
its mission to provide integrated housing for persons with disabilities in the City.
However, the protection granted by the preliminary injunction is not a permanent
relief. See Valencia v. City of Springfield, 883 F.3d 959, 967 n.8 (7th Cir. 2018)
(“The City’s fear that the district court’s preliminary interpretation ‘renders moot
any factual determination that might be made’ at trial is overstated. . . . The propriety
of preliminary relief and resolution of the merits are ‘significantly different’ issues”
. . . and thus “findings made at the preliminary injunction stage do not bind the
district court as the case progresses.”) (internal citations omitted).
Because the ordinance has yet to be amended by the City, the Court concludes
that Plaintiffs are “aggrieved persons” as defined by the FHA. IAG is an aggrieved
party because the discriminatory ordinance interfered with its ability to operate the
group home and, further, it is still bound by the ordinance and thus risks facing
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zoning actions. Accordingly, IAG’s ability to open additional homes and accrue
more revenue is affected by the continued existence of the ordinance.
Additionally, the Court concludes that the individual Plaintiffs qualify as an
“aggrieved person” under the FHA. A.D. was a resident of 2328 S. Noble during
the zoning proceedings and at the time the action was filed until he passed away on
or about September 12, 2017. B.A. has lived in the Noble home since about
November 2, 2017 and has been a party in this case since December 12, 2017. A.D.’s
estate has also been a party since December 12, 2017. The Court concludes that
because the individual Plaintiffs are parties who were injured by the City’s
admittedly discriminatory housing practices, they qualify as “aggrieved persons”
under the FHA. This is true of A.D. even though he only has been a part of this case
since after the entry of the preliminary injunction, which enjoined the City from
instituting any eviction proceedings against the Plaintiffs while this action is
pending.
As noted earlier, there remained uncertainty because preliminary
injunctive relief did not preclude the City from seeking further relief and the
ordinance has remained.
Ergo, the Motion of Defendant City of Springfield for Partial Summary
Judgment on the issues of standing and damages [d/e 89] is DENIED.
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The Motion of Plaintiffs Individual Advocacy Group, Mary B. Valencia, as
the Independent Administrator of the Estate of A.D., and B.A. for Partial Summary
Judgment as to the liability of Defendant City of Springfield [d/e 92] is GRANTED.
The Motion of Defendant City of Springfield to Strike Plaintiffs’ Summary
Judgment Motion [d/e 97] is DENIED.
ENTER: March 16, 2020
FOR THE COURT:
/s/ Richard Mills
Richard Mills
United States District Judge
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