Defendants LaBrie, Inc., Linda LaBrie and Ernest LaBrie appeal from superior court orders, which held that defendants committed unfair housing practices by discriminating against persons with minor children in violation of 9 Y.S.A. § 4503(a). Defendants claim that (1) the court’s findings on disparate-treatment discrimina
tion are clearly erroneous because the evidence did not show any intent to discriminate, (2) the court’s findings based on plaintiff’s experts’ testimony should be vacated because the court did not qualify the witnesses as experts, (3) the court erred in awarding damages to a complainant for emotional distress in the absence of expert medical testimony, (4) the court awarded excessive attorney’s
On May 1, 1981, Linda and Ernest LaBrie purchased Limehurst Mobile Home Park. The Park consists of thirty-three mobile home lots. Most of the residents own their own mobile homes and rent only the lot. LaBrie, Inc. purchased the Park from Ernest and Linda LaBrie on October 30, 1987. Ernest and Linda LaBrie are the sole corporate officers and shareholders of LaBrie, Inc. Ernest LaBrie is the president, and Linda LaBrie is the vice-president and treasurer. The office of LaBrie, Inc. is in their home. The Park is managed primarily by Linda, who is responsible for renting units, collecting rent, and making all general management decisions. She also sets policies, rules, and lease terms, and approves residents for tenancy. Ernest is primarily responsible for maintenance under the direction of Linda but is aware of the decisions made by Linda.
When the LaBries purchased the Park, the lease term on occupancy stated “that only one family shall occupy a mobile home on a permanent basis.” In 1982, the LaBries changed the occupancy provision to:
Lessees, who have entered into a lease agreement after April 1,1982, shall not be permitted to have children under the age of 18 years reside in their mobile home unit. Lessee hereby agrees that lessee shall terminate this lease and vacate the premises prior to having said children reside in their mobile home. (Emphasis added.)
In July 1988, the occupancy provision was essentially the same but stated in addition, “This age restriction applies to all lots at Limehurst Mobile Home Park based on VSA 9-4508(b).”
In April 1989, the occupancy provision was revised to state:
[L]essees who have entered into a lease agreement after July 1, 1988 shall not be permitted to have more than two permanent occupants per lease premises. . . . Lessees prior to July 1, 1988, who have more than two permanent occupants shall be grandfathered, but the number of occupants cannot expand beyond what existed as of July 1,1988. (Emphasis added.)
Currently, only one mobile home in the Park houses a family with a minor child. This family moved into the Park prior to 1982. No persons with minor children moved into the Park after the LaBries purchased it, even after the occupancy provision was changed from adults-only to a two-occupant maximum. The population of the Park declined from May 1981 to May 1990, from ninety-five residents to sixty residents. The LaBries also own two other mobile home parks, four homes leased as residential units, and twelve mobile homes throughout Vermont. There are minor children living in many of these homes.
Scott and Luanne McCarthy purchased a mobile home in the Park for $7,000 in August 1986. Linda LaBrie sent them a letter on August 1,1986, accepting their application, and stating: “We remind you that Limehurst Mobile Home Park is an adult park and if you should have children in the future you will be required to vacate Limehurst Mobile Home Park prior to the arrival of said child.” In July 1989, the McCarthys contacted a broker to sell their mobile home because Luanne was pregnant. The broker determined that the McCarthys should ask $18,000 for their home.
The McCarthys’ son was born September 18, 1989. When they returned home from the hospital, they found a letter from Linda LaBrie informing them that they must vacate the premises “upon arrival of your third occupant.” Following the letter, the McCarthys received telephone calls, visits, and additional letters from Linda LaBrie telling them to vacate the Park. On December 28, 1989, the McCarthys were served with a summons and complaint for eviction brought by the
When the McCarthys informed the LaBries that they had accepted a deposit for the sale of their home, the LaBries delayed the sale, indicating that they would not act on the purchasers’ application until the eviction action was resolved. The purchasers’ application was approved February 25, 1990, and the McCarthys sold their mobile home on March 2,1990, for $13,000. At trial, the broker testified that one-half of potential purchasers were ineligible because a minor child in the family put them over the occupancy limit. There was conflicting evidence regarding the value of the home, but the court determined that the fair market value of the home at the time of the sale was $13,000.
From September 1989 through March 1990, while living at the Park, Luanne McCarthy felt humiliated by Linda LaBrie’s demands to vacate the premises. Consequently, she did not leave her home often. She was unable to sleep and had chest pains. The McCarthys moved from the Park to the home of Scott McCarthy’s parents, where they had to share a family room in the basement with their newborn child. Luanne McCarthy worried about their inability to find their own housing; her chest pains increased and she was given two medications to relieve stress.
The McCarthys filed a complaint with the Human Rights Commission, which commenced this action in Washington Superior Court in October 1990, alleging that defendants LaBrie, Inc., Linda LaBrie, and Ernest LaBrie violated the Fair Housing and Public Accommodations Act, 9 V.S.A. § 4503(a)(1) — (3), by discriminating against persons intending to occupy a dwelling with one or more minor children. The Commission contended that the restrictive occupancy limit for the Park (1) was adopted for the purpose of discriminating against persons with minor children by either limiting or eliminating them from occupancy in the Park, and (2) although facially neutral, has an unlawful discriminatory impact because it excluded persons with minor children in significant numbers. Defendants maintained that the occupancy limit was necessary due to limited water and septic capacity.
At trial, both parties presented expert testimony on the capacity of the septic system and water supply at the Park. Defendants’ expert testified that the septic system at the Park was adequate to serve a maximum of sixty-six people. The court found that the expert had not performed the tests necessary to properly assess the potential capacity of the septic system, and concluded that there was no credible evidence that the system could not support an increase in population in the Park. Similarly, the court found that there was no credible evidence that water supply or water pressure was inadequate to serve more than sixty-six people. Although the court acknowledged the LaBries’ fear that problems — which had existed prior to installation of a new well and replacement of their leachfields — would reoccur, it concluded that the LaBries have less restrictive alternatives available to them than the two-person occupancy limit.
The court concluded that plaintiff had established that the McCarthys were evicted due to the presence of a minor child, and that persons with minor children were constructively denied access to housing in the Park by the two-person occupancy limit. Further, the court concluded that defendants had not established the occupancy limit as a legitimate business necessity arising from septic and water capacities of the Park. Accordingly, the court held that defendants had violated 9 V.S.A. § 4503(a) and awarded the McCarthys $2,700 in attorney’s fees for the eviction proceeding, $1,500 for the emotional distress and humiliation suffered as a result of defendants’ actions, $3,000 for loss of civil rights caused by the eviction and by restricting potential purchasers, and $3,000 in punitive damages. The court also awarded the Human Rights Commission civil penalties of $6,000. In subsequent orders, the court permanently enjoined defendants from adopting or enforcing a two-person-per-lot occupancy limit at the Limehurst Mobile Home Park, and awarded plaintiff $51,072 in attorney’s fees, $2,194.39 for expenses and $240 for discovery costs. Defendants appeal.
The Vermont Fair Housing and Public Accommodations Act (FHPA), 9 V.S.A. §§ 4500-4507, prohibits discrimination in renting “a dwelling or other real estate to any person because of the race, sex, sexual orientation, age, marital status, religious creed, color, national origin or handicap of a person, or because a person intends to occupy a dwelling with one or more minor children, or because a person is a recipient of public assistance.” 9 V.S.A. § 4503(a)(1). Discrimination on the basis of age, or because a person intends to occupy a dwelling with one or more minor children, has been prohibited in the rental of dwelling units in Vermont since 1986. See 1985, No. 175 (Adj. Sess.), § 1 (prohibiting discrimination in rental of dwelling unit) (codified at 9 V.S.A. § 4466), repealed by 1987, No. 74, § 2(b); 1987, No. 74, § 1 (codified at 9 V.S.A. § 4504); amended by 1987, No. 253 (Adj. Sess.), §§ 2-3 (codified at 9 V.S.A. §§ 4503-4504). FHPA defines “dwelling” as “any building, structure, or portion thereof which is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land which is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof.” 9 V.S.A. § 4501(5) (emphasis added).
Mobile home lot rentals were, however, covered by a separate provision enacted in 1988, which did not strictly prohibit discrimination on the basis of age or because a person intended to occupy a dwelling with one or more minor children. See 1987, No. 252 (Adj. Sess.), § 4 (allowing discrimination based on age in rental of mobile home lots if park is occupied or planned for occupancy based on age restrictions as of June 1,1988). The mobile-home-lot-rental provision was repealed in 1989, when the Legislature revised Vermont’s housing discrimination laws to comply with the federal Fair Housing Act Amendments of 1988. See 1989, No. 89, § 9 (stating purpose of statutory revision) & § 10 (repealing 9 V.S.A. § 4508). Thus, Vermont’s general housing-discrimination provision has been applicable to the rental of mobile home lots since 1989.
FHPA is patterned on Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), 42 U.S.C. §§ 3601-3631, compare 9 V.S.A. § 4503 (unfair housing practices) with 42 U.S.C. § 3603 (discrimination in sale or rental of housing), and therefore, in construing FHPA, we consider cases construing the federal statute. Cf.
Hodgdon v. Mt. Mansfield Co.,
Plaintiff alleged violations of FHPA under two theories of discrimination law: (1) disparate treatment — defendants intentionally discriminated against members of a statutorily protected category because of their membership in that group, and (2) disparate impact — defendants’ facially neutral policy has a disproportionate effect on a statutorily protected category. The trial court found defendants liable for housing discrimination under both theories. We do not address defendants’ challenges to the trial court’s finding of disparate impact because we uphold the trial court’s decision on the theory of disparate treatment.
Defendants first claim that the court erred in finding disparate treatment or intent to discriminate in the absence of any direct evidence of discrimination against persons with minor children. Intentional discrimination may be shown by circumstantial or direct evidence.
United States v. Lepore,
In this case, however, plaintiff presented direct evidence of discrimination. We agree with the
Lepore
court that evidence of a discriminatory practice prior to civil rights legislation, coupled with a post-legislation pattern of maintaining the status quo, may be sufficient to establish the intent to continue the discrimination through a neutral policy. See
Lepore,
Pursuant to 9 V.S.A. § 4504(4), defendants assert as an affirmative defense that their actions against the McCarthys were based on a legitimate, nondiscriminatory occupancy limit. Section 4504(4) provides that the unfair-housing-practices provisions do not apply “to limit a landlord’s right to establish and enforce legitimate business practices necessary to protect and manage the rental property, such as the use of references. However, this subdivision shall not be used as a pretext for discrimination in violation of this section.” FHPA is a remedial statute; thus, we construe it generously and read exemptions narrowly. See
City of Edmonds v. Washington State Bldg. Code Council,
On appeal, defendants argue that the trial court applied the wrong standard in determining whether they met the business necessity exemption.
3
Relying on
At trial, defendants maintained that their occupancy limit is based on legitimate septic and water capacity considerations. They presented evidence that the septic system at the Park was capable of handling a maximum of sixty-six people — or two persons per lot. They also presented evidence on the limits of the Park’s water supply. The trial court rejected this defense, finding that defendants had failed to present credible evidence that an increase in the number of occupants per living unit would adversely affect the septic or water systems. It also found that there are less restrictive alternatives available to defendants. The court, therefore, concluded that the business necessity advanced by defendants was not legitimate, but rather, a mere pretext for discriminating against persons with minor children. Thus, defendants failed to meet even the lower standard of showing that the occupancy limit had a significant relationship to a significant business objective.
The federal Fair Housing Act has no provision comparable to Vermont’s business necessity exemption. The federal statute has, however, an occupancy restriction provision, which allows only reasonable local, state or federal restriction on the maximum number of occupants per dwelling. See 42 U.S.C.A. § 3607(b)(1). Courts have found privately imposed occupancy limits, such as the limit imposed by defendants in this case, to unreasonably limit or exclude persons with minor children, and therefore, violate the Fair Housing Act. See, e.g.,
Lepore,
ÍL
Defendants next claim that the trial court’s findings that rely on the testimony of plaintiff’s experts must be vacated because the court did not qualify the witnesses as experts. At trial, defendants withdrew their objection to the qualifications of plaintiff’s expert, Gerard Guertin, and failed to object to those of plaintiff’s expert, Howard Flanders; accordingly, we do not- consider these challenges on appeal. See
Hudson v. Town of East Montpelier,
Defendants argue that the trial court erred in awarding damages to a complainant for emotional distress in the absence of expert medical testimony showing that defendants’ conduct caused the complainant’s distress. Defendants do not indicate any objection in the record to the award of damages for emotional distress on this ground and cite no authority to support this proposition on appeal. Not surprisingly, we have found no authority to support defendants’ contention that expert testimony is necessary to support a claim for emotional distress resulting from humiliation due to unlawful discrimination.
Generally, expert medical testimony is required to support a finding of causation where the link is ‘“obscure and abstruse’” such that a layperson “‘can have no well founded knowledge and can do no more than indulge in mere speculation.’”
Merrill v. University of Vermont,
Damages for embarrassment, humiliation, and emotional distress may be awarded in a housing-discrimination case brought under Title VIII.
Secretary of Housing & Urban Dev. v. Blackwell,
Both federal and state courts have upheld awards for emotional distress resulting from unlawful housing discrimination without expert testimony on causation. See, e.g.,
Blackwell,
Medical evidence on mental or physical symptoms is not required.
Johnson,
In the instant case, we conclude that the emotional distress to which Luanne McCarthy testified is not beyond the understanding of a layperson. The award for emotional distress was supported by Luanne’s testimony and could be inferred from the circumstances. No expert testimony on causation was necessary, and therefore, we uphold the award. See
Lepore,
IV.
Defendants argue that the court awarded excessive attorney’s fees. First, they maintain that the court erred in awarding attorney’s fees under 9 V.S.A. § 4553(a)(7)(D) at the market rate of the private bar, rather than at the actual cost to plaintiff. 5 Defendants cite no case law to support this contention but rely on the language of the statute. Section 4553(a)(7)(D) provides that the Human Rights Commission may seek “costs and reasonable attorney’s fees associated with the investigation and enforcement of actions.” (Emphasis added.) Defendants maintain that fees “associated with” means fees actually incurred in investigation and enforcement of the action. We find no support for this construction in the language of the statute, the legislative purpose in providing for attorney’s fees, or the case law.
The initial estimate of a reasonable attorney’s fee in federal civil rights actions is properly calculated by multiplying the number of hours reasonably expended on the litigation times a reasonable hourly rate.
Blum v. Stenson,
We agree with the analysis of the United States Supreme Court in
Blum.
See
Bisson v. Ward,
The fact that plaintiff’s attorney is a state employee is irrelevant to a determination of reasonable attorney’s fees. See
Dennis v. Chang,
Defendants also argue that the hourly rate awarded for chief counsel should have been $80 because this rate was the law of the case. During trial, the court ordered defendants to pay plaintiff $80 per hour to take depositions of surprise witnesses presented by defendants. According to defendants, this order established an $80-per-hour rate for fees for chief counsel in this case. We disagree for two reasons. First, an order for discovery sanctions does not establish the rate for reasonable attorney fees under § 4553(a)(7)(D). Second, the discovery sanction did not establish an hourly rate for chief counsel. At the time of the order, there was no indication from plaintiff regarding which attorney would take the depositions. 6
Defendants next argue that the court failed to reduce the award for attorney’s fees by amounts associated with prosecution of unsuccessful claims. An award of attorney’s fees must be based on the facts of each case, and therefore, the trial court is in the best position to determine a reasonable fee.
Hensley v. Eckerhart,
Once the court has determined the lodestar amount, the court may adjust the fee up or down based on other factors.
Hensley,
Where the plaintiff has failed to prevail on a claim that is distinct in all respects from his successful claims, the hours spent on the unsuccessful claim should be excluded in considering the amount of a reasonable fee. Where a lawsuit consists of related claims, a plaintiff who has won substantial relief should not have his attorney’s fee reduced simply because the [trial] court did not adopt each contention raised.
Hensley,
In this case, defendants contend that the trial court should have adjusted the fee downward because (1) the original complaint alleged three complainants and only one complainant was successful, (2) plaintiff failed to achieve total removal of occupancy limits, and (3) plaintiff failed to prove lost value on the resale of the complainants’ mobile home. We find no abuse of discretion. Plaintiff asserted claims of housing discrimination based on a core of facts and related legal theories. Although the trial court did not provide all the relief requested, plaintiff was clearly successful in this suit, and the trial court so acknowledged. Accordingly, the trial court did not abuse its discretion in failing to reduce the fee on the bases asserted. See
Hensley,
Next, defendants argue that plaintiff was not entitled to attorney’s fees for time spent preparing the motion for allowance of attorney’s fees and the time sheets. Although plaintiff is entitled to fees for time spent on the motion, see
Goodman v. Heublein, Inc.,
Defendants claim the court awarded excessive fees to plaintiff based on hours claimed for various activities that defendants’ expert maintained were excessive. Such a factual determination is best left undisturbed absent strong evidence of excessiveness. See
Krupinsky,
V.
Defendants next argue that the trial court committed plain error by holding Ernest LaBrie personally liable for unlawful discrimination because Linda LaBrie is the primary manager of the Park. Defendants did not raise this issue before the trial court,
7
and therefore we do not address it on appeal.
Hudson,
VI.
Defendants contend that the trial court erred by excluding testimony of defendants’ witness regarding a telephone call the witness allegedly received from the attorney for plaintiff on the evening before the witness was scheduled to testify, discouraging her from testifying. The trial court held that the testimony was not relevant because the witness appeared at trial and testified. At trial, defendants argued that the testimony was relevant to the claim that the action was brought in bad faith and should be dismissed. On appeal, defendants have not reasserted this position. Although we are uncertain of the grounds for relevancy asserted by defendants on appeal, it is clearly not the same ground raised before the trial court. Accordingly, we do not consider it. Id.
Affirmed in all respects except the award of attorney’s fees; cause is remanded for deduction of time spent reconstructing time sheets.
Notes
Defendants also argue that unfair housing practices in violation of 9 YS.A. § 4503(a) cannot be proven by disparate impact alone. We do not reach this issue because we uphold the trial court’s decision on the theory of disparate treatment.
In the absence of direct evidence of discrimination, we have applied the
McDonnell Douglas
burden-shifting framework. See
McDonnell Douglas Corp. v. Green,
Neither party has addressed whether Vermont’s business necessity exemption, 9 V.S.A. § 4504(4), is applicable in a disparate-treatment claim, or is limited to disparate-impact claims. Accordingly, we do not address this issue in the instant case; rather, we proceed on the assumption that it is applicable here. We note there is no business necessity exemption in the federal Fair Housing Act. See 42 U.S.C.A. § 3607. Under Title VII (employment discrimination), the business necessity defense is applicable only in disparate-impact cases. See 42 U.S.C.A. § 2000e-2(k)(2) (business necessity defense may not be used against claim of intentional discrimination). Courts have also applied the business necessity defense in disparate-impact Title VIII (housing discrimination) cases. See, e.g.,
Huntington Branch, NAACP v. Town of Huntington,
We do not decide the appropriate test to apply for the business necessity defense in a disparate-treatment case because we do not decide without briefing whether this defense is even applicable in a disparate-treatment claim.
Before the trial court, plaintiff requested hourly rates of $125 for its chief counsel and $90 for its associate counsel. Based on the fees customarily charged for legal services by the private bar, the court awarded hourly rates of $100 and $80 respectively. Plaintiff has not appealed this award.
We note that the court determined that a reasonable hourly fee under § 4553(a)(7)(D) for plaintiff’s second attorney was $80.
Before the trial court, defendants maintained that they could not be held liable for housing discrimination because during the period that they owned the Park personally, the FHPA did not apply to mobile home lots. The court held that the complaint referred to events after LaBrie, Inc. purchased the Park, but that defendants, as corporate officers, could nonetheless be held liable for their tortious acts.
