Borger Management, Inc. (Borger), appeals a trial court decision and order of November 22, 2002, denying its motion for partial summary judgment and granting the cross-motion for summary .judgment of appellee, Michael Sindram. Borger contends that the trial judge erred in that she held that the District of Columbia Rental Housing Act (RHA), D.C.Code § 42-3501.01-3509.07 (2001), created an “endless lease,” terminable only for statutory good cause, and that the federal Section 8 voucher statute, 42 U.S.C. § 1437f(a), which allows landlords to opt out of the Section 8 program at the end of the initial leasе term without a showing of cause, did not preempt the inconsistent provision of the RHA. Additionally, Borger contends that the trial judge erred by failing to give res judicata effect to a final decision and order that an administrative law judge (ALJ) of the District of Columbia Department of Consumer and Regulatory Affairs (DCRA) granted in favor of Borger over Sindram.
We hold that the administrative proceeding before the DCRA was the equivalent of a judicial proceeding and that the issues of fact and law, as they related to the Section 8 preemption issue, were essentiаl to the ALJ’s judgment and were the same Section 8 issues upon which the trial court based its grant of summary judgment in favor of Sindram. Accordingly, without ruling on the merits of Borger’s contentions regarding Section 8 preemption, we conclude that the trial court erred in failing to rule that appellee Sindram’s complaint was procedurally barred on grounds of collateral estoppel, and in failing, accordingly, to grant Borger partial summary judgment. However, as regards Sindram’s alternative claim that Borger’s actions represented source-of-income discrimination, we hold that that issue was not fully litigated before the ALJ and not addressed in his decision and order, and therefore we conclude that the Superior Court was not precluded from considering Sindram’s motion for summary judgment on that ground. The trial court, however, denied Sindram summary judgment on that issue, unable to resolve it on the record before it. We therefore reverse the decision of the trial court denying partial summary judgment to Borger on grounds of Section 8 preemption, but remand for further proceedings on the issue of whether Bоrger’s actions constituted source-of-income discrimination under the DCHRA. D.C.Code §§ 2-1402.21(a), - 1402.31(c) (2003).
I.
In December of 2000, the parties to this case, landlord Borger and tenant Sindram, entered into a rental contract for the residential premises at 6817 Georgia Avenue, Northwest, Washington, D.C. # 204. The rent was $700 per month, and the initial lease term was for one year. At the time the parties entered into the rental contract, Sindram was a participant in the Housing Choice Voucher Program, otherwise known as the Section 8 program. Section 8 is a federally-subsidized program administered locally by the District of Columbia Housing Authority (DCHA). It seeks to assist low-income families to obtain housing by supplementing their rental payments with government vouchers.
The parties entered into both types of contracts. Commencing on December 1, 2000, Sindram paid his portion of the rent; DCHA paid the remainder; and Borger accepted the payments. This arrangement was still in effect on August 10, 2001, at which time Borger notified DCHA and Sindram of its intent to exercise its right under the provisions of the federal legislation creating the Section 8 program to terminate its participation in the Section 8 prоgram, effective November 30, 2001, the last day of the initial lease term. 42 U.S.C. § 1437f. Borger’s August 10th notice, filed just four days after an August 6, 2001, DCRA hearing on Sindram’s tenant complaint alleging housing code violations by Borger, stated that Sindram could remain in possession of the apartment, paying the full rent, but that it would no longer participate in the Section 8 program or accept partial payment vouchers from DCHA.
On August 15, 2001, in response to Bor-ger’s notification, Sindram filed a tenant petition with the DCRA, which was acting upon referral from the Rental Accommodations and Conversion Division (RACD) pursuant to Title II of the Rental Housing Act of 1985. 1 Sindram asserted that Bor-ger’s termination of its Section 8 participation was retaliatory and therefore unlawful. A hearing was held on November 5, 2001, and included the presentation of evidence, testimony of witnesses, and argument by the parties. Before the agency issued a ruling on the complaint, however, the December 2001 rent came due and Sindram and DCHA tendered to Borger rent payments which together totaled the rent owed. Borger refused to accept the paymеnts, returned the portion tendered by DCHA, reiterating its intent to terminate the Section 8 HAP contract, and returned Sindram’s payment, stating that it would not accept partial payments from him.
Subsequently, on December 17, 2001, Borger filed an action for possession in the District of Columbia Superior Court on the ground of nonpayment of rent. On February 4, 2002, Sindram filed an answer to the action for possession, setting forth numerous defenses, including the illegality of Borger’s termination of the Section 8 HAP contract and of its source-of-income discrimination proscribed by the District of Columbia Human Rights Act (DCHRA). During the pendency of the possessory action, Sindram continued to make his rental payments into the registry of the court pursuant to a protective order entered by the court in January 2002. DCHA also continued to tender its portion of the rental payments directly to Borger, which continued to return the payments.
On March 15, 2002, while the Superior Court case was still pending, the DCRA issued a ruling on Sindram’s tenant complaint of retaliation by Borger, ruling that Borger’s decision not to renew the Section 8 lease was “permitted by law” and therefore not retaliatory. The decision and order of the DCRA stated: “The failure of
Notwithstanding the ruling of the DCRA, the parties continued toward resolution of Borger’s action for possession, filing cross motions for summary judgment on August 30, 2002 (Sindram) and September 4, 2002 (Borger). Sindram’s motion contended that the express language of the HAP contract, the District of Columbia Rental Housing Act, and the DCHRA prohibited Borger’s unilateral termination of the Section 8 contract. Borger’s cross-motion countered that unilateral termination was permissible under the federal Section 8 statute and that the prior administrative decision by the DCRA procedurally barred Sindram’s claim under collateral estoppel and res judicata principles. Borger’s cross-motion for partial summary judgment also sought a ruling that Sin-dram was оbliged to pay $700 per month in rent without a DCHRA subsidy.
On November 22, 2002, the trial court granted Sindram’s motion for summary judgment, and denied Borger’s cross-motion for partial summary judgment as moot. In its order, the trial court ruled that D.C. law created an automatic lease extension, as long as the tenant continues to pay rent, and that therefore the lease remained in effect until terminated upon a showing of good cause. Accordingly, the trial court concluded, the HAP contract, which by its language terminates when the lease terminates, remained in effect and could not be unilaterally terminated by Borger without evidence of statutory good cause. Finally, the trial court concluded that Sindram had failed to present sufficient undisputed evidence to establish as a matter of law that Borger discriminated on the basis of source of income under the DCHRA. The court did not rule on Bor-ger’s contention that Sindram’s arguments were precluded by reason of the earlier agency decision. This appeal by Borger followed.
II.
On appeal Borger contends that the federal legislation crеating the Section 8 subsidy, which allows landlords to opt out of their voluntary participation at the end of the lease term without a showing of good cause, preempts local law, which requires statutorily-defined good cause for termination of a lease. Additionally, Borger contends that the trial court erred by not giving res judicata or collateral estoppel effect to the opinion and order issued by the ALJ in the administrative agency hearing between these same two parties. Based on these arguments, Borger contends that the trial сourt erred in denying its cross-motion for partial summary judgment and granting Sindram’s motion for summary judgment. We find Borger’s collateral estoppel argument persuasive. Thus, without reaching Section 8 federal preemption issues, we reverse the judgment of the trial court and, for the reasons explained below, remand for further proceedings on the issue of source-of-income discrimination.
We review grants or denials of motions for summary judgment
de novo
and apply the same standard as the trial court in reviewing and assessing the record in the light most favorable to the nonmoving party.
See Futrell v. Department of Labor Fed. Credit Union,
On August 15, 2001, Sindram, after receiving notice of Borger’s intent to terminate his Section 8 tenancy, filed a tenant petition with the Rent Administrator at the DCRA. In his petition he alleged that Borger’s termination of his Section 8 tenancy was retaliatory and that it was the equivalent of a notice to quit. At a full hearing before an ALJ of the DCRA, Sindram argued that Borger’s decision not to renew the Section 8 lease was “an unlawful act of retaliation directed at him in response to the hearing held in Tenant Petition 27,056.” Borger stated conversely “that it was not retaliating against [Sindram] because he had exercised his right to file [Tenant Petition] 27,056 but was simply exercising its legal right to discontinue the Section 8 lease for [Sindram’s] unit.” Subsequently the agency issued a decision and order finding in favor of Bor-ger, specifically stating “Respondent’s [Borger’s] decision not to renew the Section 8 lease for Petitioner’s [Sindram’s] unit is permitted by law. Accordingly, the ALJ finds that Petitioner’s claim of retaliation is not applicable here and is dismissed because thе alleged retaliatory action by Respondent is permitted by law.” This ruling forms the basis for Borger’s argument that Sindram’s claims before the trial court are precluded as having already been litigated.
The doctrine of collateral estoppel generally precludes the relitigation of factual or legal issues decided in a previous proceeding and essential to the prior judgment.
Montana v. United States,
The parties to this matter do not dispute that they are the same two рarties who were involved in the administrative hearing before the DCRA. Rather, Sindram contests whether (1) the agency was acting in a judicial capacity when it rendered its ruling, (2) his current challenge to the legality of Borger’s termination of the HAP contract is “the same claim,” as required by
res judicata
doctrine, or (3) his instant claim was “actually litigated” and “essential” to the prior administrative judgment, as required by collateral estop-pel doctrine. We agree with Sindram that we are not considering identical claims be
Sindram argues that DCRA was not acting in a judicial capacity as it was not ‘“resolving disputed issues of fact properly before it which the parties ha[d] an adequate opportunity to litigate.'”
Davis, supra,
The eases Sindram cites in support of his contention specifically state that the “threshold inquiry [in determining whether an agency decision should have preclusive effect] is whether the earlier proceeding is the essential equivalent of a judicial proceeding!,]” not whether the issues addressed are issues of fact or law.
Oubre, supra,
Sindram next contends that, to the extent that the DCRA considered and rendered a determination on the issue of whether Borger’s termination of the HAP contract was legal, it did so under a mate
The statute governing retaliation plainly states that retaliatory action “may include any action or proceeding not otherwise permitted by law ...” D.C.Code § 42-3505.02 (2001). Admittedly this language is difficult to construe.
See Wahl v. Watkis,
Sindram argues that the determination meant “merely that the lаndlord had met its burden to disprove a retaliatory motive,” appearing to regard it as a finding of fact regarding retaliation. The ALJ actually found, however, that “Petitioner’s claim of retaliation is not applicable here and is dismissed because the alleged retaliatory action by Respondent is permitted by law.”
This finding is further reflected in the ALJ’s conclusion of law that petitioner Sin-dram “failed to prove by a preponderance of evidence that Respondent retaliated against him ... in that the alleged retaliation action by Respondent — not to renew the Section 8 lease for Petitioner’s unit — is permitted by law.” The foregoing finding and conclusion of the ALJ are most reasonably read to constitute a ruling that the landlord’s right to decline to renew the federal Section 8 contract prevails over inconsistent local statutes, which are effectively preempted by the federal law creating the HAP or Section 8 program.
California Fed. Sav. & Loan Ass’n v. Guerra,
Accordingly, we disagree with appellee’s contention that the ALJ did not rale on this matter. Although he did not discuss the underlying legаl principles governing termination, the specific language of the HAP contract, or federal Section 8 law, he ruled that Section 8 law permitted the landlord to end its Section 8 arrangement regarding the tenancy in question notwithstanding District of Columbia legal precedents and statutes regarding retaliation.
We cannot agree with Sindram’s contention that the ALJ’s ruling evinces a material misconception of law. We recog
Sindram sets forth two additional arguments in support of his contention that his claim is not precluded by the decision of the ALJ in the administrative law case. First, he argues that his claim challenges the legality, under the local eviction and discrimination statutes, of Borger’s termination of the HAP contract, issues he contends were not “actually litigated” before the DCRA. Second, he argues that the ALJ’s determination regarding the legality of Borger’s termination of the HAP contract was “not even relevant, much less ‘essential,’ to its judgment on the retaliation claim.”
Looking first at the issue of whether Sindram’s claim was “actually litigated” before the DCRA, we conclude that it was. “An issue is actually litigated when it ‘is properly raised, by the pleadings or otherwise, and is submitted for determination, and is determined....’”
Ali Baba Co., Inc. v. WILCO, Inc.,
In this case, what was presented and argued to the DCRA was an allegation that “[Borger’s] decision not to renew the Section 8 lease for his unit was an unlawful act of retaliation dirеcted at him in response to the hearing held in Tenant Petition 27,056 against [Borger] earlier in 2001.” The following information was before the administrative agency: (1) a hearing had been held on August 4, 2001, on a tenant petition filed by Sindram alleging housing code violations against Borger; and (2) four days after that hearing Bor-
Sindram also contends that, even if the ALJ did determine the legality issue, that determination was not “essential” to the final judgment. In support of this contention he argues again that it was not the legality of Borger’s termination of the HAP contract but rather Borger’s motive for terminating the contract that was essential to the ALJ’s determination. As we noted previously, this argument is without merit, and we find that the ALJ’s determination of whether Borger’s termination of the HAP contract was legal was at the very heart of his ruling, for had he not made that determination he would have been unable to conclude on the record before him that the action was not retaliatory.
In sum, we hold that the DCRA was acting in a judicial capacity when it heard and ruled on Sindram’s petition alleging Borger’s termination of his Section 8 HAP contract was retaliatоry. We further hold that the issue of the legality of Borger’s unilateral termination of the HAP contract was both “actually litigated” and “essential” to the judgment of the DCRA. Thus, we hold that under collateral estoppel principles the issues regarding termination of the HAP contract raised by Sindram before the Superior Court were procedurally precluded and that the trial judge erred in granting Sin-dram’s motion for summary judgment and denying Borger’s motion for partial summary judgment. We also hold that the issue of source-of-income discrimination was not “actually litigated” оr “essential” to the ALJ’s ruling and thus was not removed by collateral estoppel principles from consideration in the subsequent Superior Court litigation.
III.
Finally, we turn to Sindram’s argument that Borger’s actions constituted source-of-income discrimination under the DCHRA. This argument was pleaded and argued before the trial court and was rejected. The judge ruled that Sindram had failed to present sufficient evidence upon which to make that determination. In his brief here Sindram argues that even if this court found error in the trial judge’s denial of Borger’s motion for partial summary judgment, Borger’s actions nevertheless constituted discrimination under DCHRA and thus afford an independent ground for affirmance. Although Sindram failed to cross-appeal on this issue, such an appeal was not necessary to enable Sindram to argue it as an independent ground for
This argument, however, does not avail Sindram as the trial judge ruled correctly that the record did not justify entry of summary judgment for him on this ground. As Borger points out, his responses to discovery set forth non-retaliatory reasons for its decision not to renew the HAP contract, inсluding material misrepresentation on Sindram’s rental application, his harassment of Borger’s employees, his failure to allow entry for inspection and repair, and untimely payment of rent. The record did not permit the trial judge to determine those issues as a matter of law.
Accordingly, we reverse the trial court’s denial of Borger’s motion for partial summary judgment and its grant of Sindram’s motion for summary judgment, and remand for further proceedings on the issue of source-of-income discrimination.
Reversed in part and remanded in part.
Notes
. D.C. Law 6-10, as amended, D.C.Code §§ 45-2501 et seq. (1990), the D.C. Administrative Procedures Act, D.C.Code §§ 1-1501 et seq. (1981), and the Rules of the Rental Housing Commission, 33 DCR 2656 (May 2, 1986), 14 DCMR 3800 et seq.
. Although, the parties have referred us to no appellate authority directly addressing whether an “endless lease” provision is preempted by the 1996 amendment to 42 U.S.C. § 1437f, there is a divergence of positions arising out of the trial courts of New York.
Compare Rosario, et al. v. Diagonal Realty, LLC,
