National Fair Housing Alliance v. Deutsche Bank National Trust
1:18-cv-00839
N.D. Ill.Jul 9, 2025Background
- Plaintiffs (the National Fair Housing Alliance and others) brought claims under the Fair Housing Act against Deutsche Bank National Trust, alleging discriminatory maintenance and marketing of real estate owned (REO) properties.
- Plaintiffs' § 3604(a) claim was previously dismissed; only the § 3604(b) claim (discrimination in provision of services) remains pending.
- Plaintiffs are fair housing organizations claiming impairment to their counseling and referral services due to defendants’ discriminatory maintenance practices.
- Defendants moved for clarification regarding plaintiffs’ Article III standing, statistical extrapolation of plaintiffs’ inspection results, and to exclude the damages expert Stacy Seicshnaydre.
- The court previously granted in part and denied in part summary judgment, and ruled on the scope of permissible damages.
- This order addresses outstanding defense motions before mediation, specifically on standing, evidence scope, and expert exclusion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III Standing After § 3604(a) Dismissal | Injury is impairment of services, common to all claims | Injury for § 3604(a) can't support standing for § 3604(b) | Plaintiffs maintain standing for § 3604(b) claim |
| Statistical Extrapolation of Inspection Results | Seek to aggregate results across properties in 30 metro areas | Data can't be extended to all DB-owned properties/metros | No inference beyond inspected properties in sampled metros |
| Exclusion of Stacy Seicshnaydre's Testimony | Seicshnaydre is qualified to opine on damages methodologies | Testimony is unreliable, speculative, and legally flawed | Excluded as unreliable; expert not required for damages proof |
| Damages Categories (Scope of Recovery) | May recover for broad frustration-of-mission harms | Only certain categories proximately caused by defendants | Damages limited to direct "diversion" harms, not all listed |
Key Cases Cited
- Arbaugh v. Y&H Corp., 546 U.S. 500 (jurisdiction distinction from merits for federal question cases)
- TransUnion LLC v. Ramirez, 594 U.S. 413 (standing versus statutory cause of action)
- Village of Bellwood v. Dwivedi, 895 F.2d 1521 (organizational standing for diversion of resources from discrimination)
- United States v. Balistrieri, 981 F.2d 916 (organizational damages may be proven by staff testimony)
- City of Chicago v. Matchmaker Real Estate Sales Center, 982 F.2d 1086 (affirming damages awards to fair housing organizations based on direct efforts and monitoring)