443 F.Supp.3d 494
S.D.N.Y.2020Background
- Park Slope Building: 12-story, 51-unit rental in Brooklyn developed by JDS and PMG; opened 2011 and sold in 2013.
- Fair Housing Justice Center (plaintiff) sent testers on August 29, 2018 who toured units and documented multiple accessibility defects (heavy entrance door without automatic opener, obstructed/too-high mailboxes, narrow interior doorways, high terrace thresholds, inaccessible environmental controls, inadequate kitchen/bathroom clearances).
- Plaintiff sued on February 7, 2019 alleging violations of the FHA, NYSHRL, and NYCHRL based on design-and-construction accessibility failures.
- PMG moved to dismiss on statute-of-limitations grounds, arguing design/construction claims accrue when the last unit is sold or the final certificate of occupancy is issued (2013), making suit untimely.
- The court rejected PMG’s accrual rule, holding FHA (and parallel state/local law) claims accrue when a protected person (including testers) encounters the inaccessible condition; HUD guidance, statutory text, tort accrual principles, and the FHA’s remedial purpose supported that result.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When does the statute of limitations begin for FHA design-and-construction claims? | Accrual occurs when a protected person first experiences the discrimination (e.g., tester encounter); continuing violation until remedied. | Accrual occurs at end of design/construction phase—when last CO issued or last unit sold/occupied—so claims after that are time-barred. | Limitations period begins when an aggrieved person encounters the unlawful condition; Plaintiff’s Aug 29, 2018 tester visit made the FHA claim timely. |
| Do NYSHRL and NYCHRL accrual rules differ for design/construction claims? | Same accrual rule as FHA: claim accrues when the discriminatory act is experienced. | Same as FHA argument (accrual at sale/CO). | NYSHRL/NYCHRL accrual aligns with FHA; Plaintiff’s state and city claims were timely. |
Key Cases Cited
- Havens Realty Corp. v. Coleman, 455 U.S. 363 (1982) (recognizes testers and private "testers" standing under the FHA).
- Garcia v. Brockway, 526 F.3d 456 (9th Cir. 2008) (en banc) (holds accrual at completion of design/construction—last CO issuance; cited by defendant).
- Eastern Paralyzed Veterans Ass'n v. Lazarus-Burman Assocs., 133 F. Supp. 2d 203 (E.D.N.Y. 2001) (treats inaccessible design/construction as a continuing violation accruing until remedied).
- Wallace v. Kato, 549 U.S. 384 (2007) (tort accrual principle: cause of action accrues when wrongful act results in damages).
- Curtis v. Loether, 415 U.S. 189 (1974) (characterizes FHA damages actions as tort-like and informs accrual analysis).
- Meyer v. Holley, 537 U.S. 280 (2003) (courts assume Congress incorporates ordinary tort rules into statutory causes of action).
- TRW Inc. v. Andrews, 534 U.S. 19 (2001) (statutory interpretation presumption against rendering statutory language superfluous).
- United States v. Mead Corp., 533 U.S. 218 (2001) (framework for deference to agency statutory interpretations).
