Scott Mollen Municipalities Not Exempt From Vicarious Liability: This Week in Scott Mollen's Realty Law Digest
Scott Mollen discusses "Gilead Cmty. Servs. Inc. v. Town of Cromwell," which is "of interest because it analyzes, inter alia, when punitive damages are available, when the amount of punitive damages may exceed the limits of constitutional due process and when a municipality may be subject to punitive damages based on the conduct of its officials."
October 01, 2024 at 10:23 AM
14 minute read
FHA—ADA—Punitive Damages—Town Violated Fair Housing Act and Americans With Disabilities Act—Compensatory and Punitive Damages Awarded—Municipalities Not Exempt From Vicarious Liability Under the FHA—Punitive Damage Award Was Unconstitutionally Excessive—Disparity Between Punitive and Compensatory Damages Was Too High—Civil Fine Amounts Also Show That Punitive Damage Award Violated Due Process—FHA Permits Punitive Damages—No Exception for Municipal Defendants—Town Engaged In a "Campaign of Discriminatory Conduct Meant To Keep a Group Home for Individuals With Mental Health Disabilities From Opening"—Jury Awarded $181,000 In Compensatory Damages and $5 Million In Punitive Damages—Town Liable for Actions of Its Officials—Vicarious Liability—Punitive Damages Ratio Of 27.6 to 1 "Unconstitutionally Excessive"—Maximum Sustainable Punitive Damages Is $2 Million—New Trial On Punitive Damages Unless Plaintiff Agrees To Reduction to $2 Million
This decision involved an appeal by a town from a judgment from a U.S. District Court. A jury verdict found the town liable for violations of the Fair Housing Act (FHA), and Americans with Disabilities Act (ADA) and awarded compensatory and punitive damages.
The town argued that the trial court improperly applied a "motivating-factor" requirement, rather than a "but-for" requirement with respect to the FHA claim and the trial court erred in subjecting "a municipality to vicarious liability and punitive damages under the (FHA)." The town also contended that the amount of punitive damages was "unconstitutionally excessive."
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
NYC's Administrative Court's to Publish Some Rulings in the New York Law Journal Is Welcomed. But It Should Go Further
4 minute read
Sidley Austin Scores Landmark Civil Rights Verdict Against Prolonged Solitary Confinement in State Prisons
Cuomo Spokesman Sues Wigdor, Alleging Their Lawsuit on Behalf of Trooper Was 'Legally Baseless'
Law Firms Mentioned
Trending Stories
Who Got The Work
Dechert partners Andrew J. Levander, Angela M. Liu and Neil A. Steiner have stepped in to defend Arbor Realty Trust and certain executives in a pending securities class action. The complaint, filed July 31 in New York Eastern District Court by Levi & Korsinsky, contends that the defendants concealed a 'toxic' mobile home portfolio, vastly overstated collateral in regards to the company's loans and failed to disclose an investigation of the company by the FBI. The case, assigned to U.S. District Judge Pamela K. Chen, is 1:24-cv-05347, Martin v. Arbor Realty Trust, Inc. et al.
Who Got The Work
Arthur G. Jakoby, Ryan Feeney and Maxim M.L. Nowak from Herrick Feinstein have stepped in to defend Charles Dilluvio and Seacor Capital in a pending securities lawsuit. The complaint, filed Sept. 30 in New York Southern District Court by the Securities and Exchange Commission, accuses the defendants of using consulting agreements, attorney opinion letters and other mechanisms to skirt regulations limiting stock sales by affiliate companies and allowing the defendants to unlawfully profit from sales of Enzolytics stock. The case, assigned to U.S. District Judge Andrew L. Carter Jr., is 1:24-cv-07362, Securities and Exchange Commission v. Zhabilov et al.
Who Got The Work
Clark Hill members Vincent Roskovensky and Kevin B. Watson have entered appearances for Architectural Steel and Associated Products in a pending environmental lawsuit. The complaint, filed Aug. 27 in Pennsylvania Eastern District Court by Brodsky & Smith on behalf of Hung Trinh, accuses the defendant of discharging polluted stormwater from its steel facility without a permit in violation of the Clean Water Act. The case, assigned to U.S. District Judge Gerald J. Pappert, is 2:24-cv-04490, Trinh v. Architectural Steel And Associated Products, Inc.
Who Got The Work
Michael R. Yellin of Cole Schotz has entered an appearance for S2 d/b/a the Shoe Surgeon, Dominic Chambrone a/k/a Dominic Ciambrone and other defendants in a pending trademark infringement lawsuit. The case, filed July 15 in New York Southern District Court by DLA Piper on behalf of Nike, seeks to enjoin Ciambrone and the other defendants in their attempts to build an 'entire multifaceted' retail empire through their unauthorized use of Nike’s trademark rights. The case, assigned to U.S. District Judge Naomi Reice Buchwald, is 1:24-cv-05307, Nike Inc. v. S2, Inc. et al.
Who Got The Work
Sullivan & Cromwell partner Adam S. Paris has entered an appearance for Orthofix Medical in a pending securities class action arising from a proposed acquisition of SeaSpine by Orthofix. The suit, filed Sept. 6 in California Southern District Court, by Girard Sharp and the Hall Firm, contends that the offering materials and related oral communications contained untrue statements of material fact. According to the complaint, the defendants made a series of misrepresentations about Orthofix’s disclosure controls and internal controls over financial reporting and ethical compliance. The case, assigned to U.S. District Judge Linda Lopez, is 3:24-cv-01593, O'Hara v. Orthofix Medical Inc. et al.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
