Filed Date: May 12, 2005
Closed Date: 2019
Clearinghouse coding complete
On May 12, 2005, individual New York residents and the New York ACORN local chapter filed this lawsuit in the U.S. District Court for the Eastern District of New York. The plaintiffs sued Nassau County and the Village of Garden City under 42 U.S.C. §1983, the Fair Housing Act, the Civil Rights Act of 1866, the Civil Rights Act of 1964, citing violations of these acts as well as the Equal Protection Clause of the 14th Amendment. The plaintiffs asked the court to enjoin the defendants from proceeding with discriminatory zoning practices; to order Garden City to approve a proposed zoning that would allow for affordable housing; and to order the defendants to take all actions necessary to assure that the Social Service Site be redeveloped to maximize the availability of affordable and integrated housing.
The plaintiffs claimed that Nassau County and Garden City had engaged in discriminatory zoning with regard to the "Social Service Site" in Garden City. While there had initially been plans to develop affordable housing on the site, residents of Garden City strongly objected to such plans at a public hearing. Garden City acquiesced to the demands of the public and granted zoning that would allow for luxury, single-family housing rather than integrated affordable housing units. The plaintiffs claimed that this continued a practice of segregated housing in Garden City and denied individual plaintiffs the opportunity to live in integrated housing within Garden City.
On November 30, 2005, the plaintiffs amended their complaint to include New York ACORN Housing Company (NYAHC) as a plaintiff. NYAHC was a non-profit community developer of affordable housing that had attempted to develop affordable housing in Nassau County for many years. NYAHC had submitted a proposal for affordable housing at the Social Service Site.
On March 10, 2006, both defendants submitted motions to dismiss the amended complaint. On July 21, 2006, District Judge Joseph F. Bianco denied these motions to dismiss, finding that the plaintiffs did have standing in court and had not failed to state a claim.
The parties engaged in discovery for several years. In late 2009, ACORN began facing organizational issues as a result of heavily edited videos that garnered public opposition to the organization. As a result, ACORN lost much of its funding and effectively closed. On June 15, 2010, District Judge Arthur D. Spatt ordered that the New York Communities for Change (NYCC) intervene as the practical, but not legal, successor to NY ACORN as plaintiff.
On July 29, 2011, defendants filed a motion for summary judgment. On February 15, 2012, Judge Spatt granted defendant County's motion for summary judgment dismissing all claims against it. Judge Spatt found that the County lacked the legal power over the zoning of the Social Services Site. Further, Judge Spatt found that the County's stated goals for the site were to increase profits, and a zoning that allowed for luxury single-family homes allowed the County to meet this stated goal. In the same order, Judge Spatt dismissed Garden City's motion for summary judgement and granted intervenor-plaintiff (NYCC) motion to amend the intervenor complaint to include the Civil Rights Act of 1871, 42 U.S.C. 1983, and the Equal Protection Clause of the 14th Amendment. 843 F.Supp.2d 287.
The parties continued with discovery. On December 6, 2013, Judge Spatt found that the plaintiffs had failed to establish liability on the part of the defendants under 42 U.S.C. §1982. Judge Spatt did find that the plaintiffs had established liability on the part of the defendant on its other charges:
(1) the FHA, 42 U.S.C. § 3601 et seq., based on a theory of disparate treatment and disparate impact;
(2) 42 U.S.C. § 1981;
(3) 42 U.S.C. § 1983; and
(4) the Equal Protection Clause of the Fourteenth Amendment to the United States Constitution.
Specifically, Judge Spatt found that in eliminating R-M zoning, which would have allowed for affordable housing units, and endorsing R-T zoning, which did not allow for affordable housing units, Garden City had acted with discriminatory intent. He based this finding on the discriminatory and racist language used by residents of Garden City at the public hearing about the housing development and based on the disparate impact of the zoning decision on minority communities. Judge Spatt directed the plaintiffs to submit a proposed remedial plan. 985 F. Supp. 2d 390.
On April 22, 2014, Judge Spatt issued a final order stating:
(1) Garden City cannot discriminate or interfere with fair housing opportunities;
(2) Garden City must adopt a fair housing resolution for zoning and other land use process;
(3) If the County decides to sell the Social Services Site, then Garden City will begin rezoning the site as an R-M site to allow for a residential multi-family development;
(4) Garden City must meet an Affordable Housing Requirement in which 10% of newly constructed residential developments of five units or more will be reserved for affordable housing;
(5) The city will develop fair housing trainings for all elected Garden City officials.
The judgment was set to last for five years.
The parties then began litigation over attorney's fees. On September 11, 2014 Judge Spatt ordered a temporary denial of attorney's fees because the case was going up on appeal.
Garden City appealed Judge Spatt's judgment that it had violated the Fair Housing Act, Section 1981, Section 1983, and the Equal Protection Clause. The plaintiffs appealed the 2012 grant of summary judgement dismissing claims against Nassau County.
On March 23, 2016, the Court of Appeals for the Second Circuit affirmed the lower court's decision with regard to Garden City's violations. The Second Circuit vacated the lower court's decision with regard to the defendant's liability as to disparate impact and remanded for further proceedings to determine whether the plaintiff met their burden of proving that "substantial legitimate, nondiscriminatory interests supporting the challenged practice could be served by another practice that has a less discriminatory effect." The Second Circuit also affirmed the lower court's finding that the County did not have legal responsibility over Garden City's zoning. The Second Circuit remanded for the district court to address Nassau County's steering of affordable housing to certain, predominately non-white, communities in violation of the Civil Rights Act and the Fair Housing Act. 819 F.3d 581.
On September 19, 2017, Judge Spatt found that the plaintiffs had met their burden at trial in demonstrating that the Garden City’s proffered reasons for its chosen zoning change could have been met by another practice, such as R-M zoning, that had a less discriminatory effect. Therefore, he reaffirmed his previous holding that Garden City was liable under a disparate impact theory. However, because the parties had agreed that further discovery was required, Judge Spatt did not address the Second Circuit’s vacation and remand of his grant of summary judgment to the County on the plaintiffs’ steering claims. 2017 WL 4174787.
On November 30, 2017, Judge Spatt entered a final judgment against Garden City, finding that all the issues regarding the plaintiffs’ claims against Garden City had been fully and finally resolved.
On November 11, 2018, Magistrate Judge Arlene R. Lindsay awarded the plaintiffs $5,089,525.59 in attorneys’ fees and $183,425.74 in costs, for a total award of $5,272,951.35 against Garden City. On December 10, 2018, the plaintiffs filed a letter to Judge Lindsay, requesting that she revise the total award amount to $5,255,108.94 due to some minor miscalculations by the court. On December 13, 2018, Judge Lindsay amended her original order and awarded the plaintiffs the total award amount of $5,255,108.94.
Meanwhile, since the Second Circuit’s remand, the plaintiffs and the County had engaged in discovery and settlement talks. On March 15, 2019, Judge Spatt signed the parties’ stipulation of discontinuance with prejudice, except without prejudice as to the court’s jurisdiction for the purpose of interpretation or enforcement of the settlement agreement. The settlement agreement required the County to pay $5,400,000 to the plaintiffs to be used for the purpose of furthering and promoting mixed-income affordable housing; $120,000 to NYCC to be used for activities related to fair and affordable housing; and $400,000 to plaintiffs’ counsel for attorneys’ fees. The settlement agreement also required the County to: prepare a development and outreach plan, within 18 months of the effective date of the settlement, to promote fairness and equity in housing; encourage the construction or development of mixed income multi-family rental housing; issue requests seeking developers who will purchase or lead land from the County on which to develop mixed-income housing; begin a campaign of advertising to provide fair housing education; allocate money towards assisting in the construction or development of mixed-income rental housing; and to not discriminate on the basis of race or color.
Summary Authors
Gabriela Hybel (2/17/2017)
Lisa Limb (3/24/2019)
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/4318888/parties/mhany-management-inc-v-county-of-nassau/
Droney, Christopher Fitzgerald (New York)
Lindsay, Arlene Rosario (New York)
Lohier, Raymond Joseph Jr. (New York)
Pooler, Rosemary S. (New York)
Spatt, Arthur Donald (New York)
Birch, Nicole (District of Columbia)
Brandriss, Chava (New York)
Brewington, Frederick K (New York)
Bridges, Kim Frances (New York)
Brown, Stanley Joseph (New York)
Droney, Christopher Fitzgerald (New York)
Lindsay, Arlene Rosario (New York)
Lohier, Raymond Joseph Jr. (New York)
Pooler, Rosemary S. (New York)
Spatt, Arthur Donald (New York)
Birch, Nicole (District of Columbia)
Brandriss, Chava (New York)
Brewington, Frederick K (New York)
Bridges, Kim Frances (New York)
Brown, Stanley Joseph (New York)
Cheng, Caroline H. (New York)
Cochet, Sabrina Helene (New York)
Dennin, Peter Joseph (New York)
DeSario, Nicole J. (District of Columbia)
Dorsainvil, Cynthia (New York)
Feinberg, Ira M. (New York)
Fleming, Benjamin Andrew (New York)
Gregory, Sarah Joy (New York)
Henriquez, Luz Maria (New York)
Hooks, Jonathan P. (District of Columbia)
Mesidor, Marjorie (New York)
Mullenbach, Linda H. (District of Columbia)
Rich, Joseph D. (District of Columbia)
Robertson, Jenny Rubin (New York)
Sakae, Megumi (Hawaii)
Sein, Andrew Jaan (New York)
Shafroth, Abigail E. (District of Columbia)
Silverstein, Thomas S. (District of Columbia)
Smith, Toby William (New York)
Starr, Michael (New York)
Sweeney, Paul B. (New York)
Wasick, Joanna F. (New York)
Asadullah, Sardar Mohammad (New York)
Augello, Cynthia Ann (New York)
Bohn, Douglas J. (New York)
Carvin, Michael Anthony (District of Columbia)
Goldin, David B. (New York)
Kasschau, Jared (New York)
Kreppein, Scott J. (New York)
Lynch, Karen (New York)
McLaughlin, Jennifer A. (New York)
Miller, Esther D. (New York)
O'Neill, Bethany Bresnaider (New York)
Podlesak, Gerald R. (New York)
Reissman, Ralph J. (New York)
Ronneburger, Ariel E. (New York)
Ryan, James G. (New York)
Savino, William M. (New York)
Scott, Andrew Reginald (New York)
Smirti, Stephen J. Jr. (New York)
Wassel, Thomas B. (New York)
Williams, Errol (New York)
See docket on RECAP: https://www.courtlistener.com/docket/4318888/mhany-management-inc-v-county-of-nassau/
Last updated May 12, 2022, 8 p.m.
State / Territory: New York
Case Type(s):
Fair Housing/Lending/Insurance
Key Dates
Filing Date: May 12, 2005
Closing Date: 2019
Case Ongoing: No
Plaintiffs
Plaintiff Description:
Individuals and the New York Association of Community Organizations alleging discriminatory housing practices.
Plaintiff Type(s):
Public Interest Lawyer: Yes
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
Village of Garden City (Nassau), City
Nassau County (Nassau), County
Defendant Type(s):
Case Details
Causes of Action:
Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
Title VI, Civil Rights Act of 1964, 42 U.S.C. § 2000d et seq.
Constitutional Clause(s):
Availably Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: Plaintiff
Nature of Relief:
Injunction / Injunctive-like Settlement
Source of Relief:
Form of Settlement:
Amount Defendant Pays: $5,400,000
Order Duration: 2014 - 2019
Content of Injunction:
Develop anti-discrimination policy
Provide antidiscrimination training
Issues
General:
Discrimination-area:
Discrimination-basis:
Race: