Inland Mediation Bd. v. City of Pomona

Decision Date23 August 2001
Docket NumberNo. CV99-10102FMC(MCX).,CV99-10102FMC(MCX).
CourtU.S. District Court — Central District of California
PartiesINLAND MEDIATION BOARD, et al., Plaintiffs, v. CITY OF POMONA, et al., Defendants.

John S. Ward, John S. Ward Law Offices, Los Angeles, CA, for Grace Cross.

David D. Lawrence, Michael P. Coyne, Pasadena, CA, for City of Pomona.

Michael Thomas, Paul R. Ayers, Michael Thomas Law Offices, Glendale, CA, for Wilfred Keagy.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT

COOPER, District Judge.

This action, which arises under federal and state fair housing laws, involves the efforts of a landlord association's attempt to improve its neighborhood and the legal significance of the assistance offered by the City of Pomona to the association. Of special significance are the actions of the association's director, who is also a Defendant in this action, and the effect of those actions upon a resident manager, Grace Cross, an African-American who attended an association meeting.

This matter is currently before the Court on two Motions for Summary Judgment filed by Defendant Keagy (docket # 67 and docket # 70, both filed on December 4, 2000), and a Motion for Summary Judgment filed by Defendant City of Pomona (docket # 68, filed December 4, 2000). For the reasons and in the manner set forth below, the Court hereby grants in part and denies in part these Motions. All parties have provided the Court with thorough and excellent briefs in connection with these motions. Therefore, the Court finds the matter suitable for resolution of all issues based on the arguments and authorities in the briefs. The July 30, 2001, hearing is removed from the Court's calendar.

I. Plaintiffs' Claims

Plaintiffs Inland Mediation Board1 ("IMB") and Grace Cross ("Cross") set forth a number of causes of action, but the substance of Plaintiffs' allegations is that Defendants Will Keagy ("Keagy") and the City of Pomona ("the City") engaged in unfair housing practices.

Plaintiffs' first cause of action, alleged against both Keagy and the City, is for violation of the federal Fair Housing Act ("FHA"), 42 U.S.C. § 3601, et seq. Specifically, Plaintiffs allege violation of six separate provisions of the FHA: 1) Making unavailable dwellings because of a protected status, in violation of 42 U.S.C. § 3604(a); 2) Discriminating in the terms, conditions, and privileges of the rental of a dwelling because of a protected status, in violation of § 3604(b); 3) Making statements, with respect to the rental of a dwelling, that indicate a preference, limitation, or discrimination based on a protected status, in violation of § 3604(c); 4) Misrepresenting the availability of a dwelling for rent because of a protected status, in violation of § 3604(d); 5) Interfering with the enjoyment of rights guaranteed by the FHA, in violation of § 3617; and 6) Failing to affirmatively further the purpose of the FHA in violation of § 3608.

The second cause of action is asserted by Cross against both Keagy and the City. This claim asserts a violation of 42 U.S.C. § 1982, which prohibits discrimination against African-Americans in the rental of housing.

Plaintiffs' third cause of action is asserted against both Keagy and the City. This claim asserts violations of California fair housing laws. Specifically, Plaintiffs assert the following claims in violation of California's Fair Employment and Housing Act ("FEHA"), Cal.Govt.Code § 12926, et seq.: 1) discrimination in the rental of housing because of a protected status, in violation of Cal.Govt.Code § 12955(a) and (d); 2) making, printing, or publishing any notice, statement, or advertisement that indicates a preference, limitation, or discrimination based on a protected status, in violation of Cal.Govt.Code § 12955(c); 3) aiding, abetting, inciting, compelling, or coercing the doing of any of the acts declared unlawful in FEHA, in violation of Cal.Govt.Code § 12955(g); and 4) otherwise making unavailable or denying a dwelling based on discrimination because of a protected status, in violation of Cal. Govt.Code § 12955(k).

The fourth cause of action is asserted by Cross against both Keagy and the City. This claim asserts a violation of California's Unruh Civil Rights Act, Cal.Civ.Code § 51, et seq. Specifically, Cross alleges that Defendants injured her by discriminating against her in the operation of the landlord association because of her protected status.

The fifth cause of action, which asserts violations of California's Unfair Business Practices law, was previously dismissed with prejudice. When Plaintiffs filed the Third Amended Complaint, they re-alleged this claim in order to properly preserve it for appeal.

The sixth cause of action is asserted by Cross as to Keagy only. Cross asserts a claim of intentional infliction of emotional distress against Keagy based on his actions and comments at an October 1, 1998, association meeting.

The seventh cause of action, which asserts a claim for negligence, was previously dismissed with prejudice. As with the fifth cause of action, when Plaintiffs filed the Third Amended Complaint, they realleged this claim in order to properly preserve it for appeal.

Finally, in the eighth cause of action Cross asserts a claim pursuant to 42 U.S.C. § 1983 against both Keagy and the City.

Both Defendants move for summary judgment as to all claims asserted against them.

II. Uncontroverted Facts
A. K-KAPS

Within the City there is a small area, bounded by Karesh, Kingsley, Abby, Pasadena, and St. Paul streets, that is known as the K-KAPS area. As measured by the 1990 United States Census, the minority population of the K-KAPS area is slightly higher than that of the City of Pomona as a whole.2 The 1990 Census also shows that this area is comprised largely of rental units rather than owner-occupied housing.

For the last nine years Paula Lantz ("Lantz") has been the Pomona City Council member whose district includes this geographical area. In the early 1990's, a group of landlords who owned property in this area formed an association that eventually came to be known as K-KAPS. The initial efforts to form this group were taken by Kathryn Layton ("Layton"), who believed that the area had developed problems with drugs and crime. Keagy was a landlord who attended the early meetings of the association. K-KAPS was never incorporated, and it did not have written by-laws.

The goal of K-KAPS was to improve the neighborhood, and the association focused on tenant-screening as the primary vehicle for furthering that goal. In order to help landlords to better select desirable tenants, the association created a tenant screening committee that taught owners and managers how to screen rental applicants. The group also sought increased police presence, increased code enforcement, and increased property management and maintenance.

Lantz testified at her deposition that she did not assist in the founding of K-KAPS. (Lantz Depo. at 50). The uncontroverted evidence establishes, however, that Lantz offered significant assistance to this group throughout the course of its existence. For example, when Lantz became aware in 1992 or 1993 that some of her constituents had formed the association to address problems in the K-KAPS area, she made arrangements for the City to provide a police department representative to speak to the association. She also arranged for meeting space on City property, as well as free parking for those who attended the meetings.

In 1994, Lantz sent a number of letters on City Council letterhead to K-KAPS area apartment owners in an attempt to increase membership in the group and attendance at the group's meetings. (See Exh. 20).3 In these letters, Lantz used phrases such as: "I would like to take this opportunity to cordially invite you to attend our next meeting"; "It is time for our K-KAPS group to meet again and forge ahead in addressing our mutual concerns"; "Let's maintain our attendance and keep working together until we are satisfied that the need for our combined efforts no longer exists"; and "Your attendance will help us in our efforts to resolve the problems that surround us and complicate our lives." Additionally, Lantz assisted K-KAPS by typing, copying, and mailing communications to K-KAPS members. Moreover, the City Council paid for the postage. Lantz attended approximately 75% of the K-KAPS meetings from the mid-1990s until the association ceased to meet in 1999.

B. Keagy Becomes Director of K-KAPS

Layton was the director of K-KAPS until the mid-1990s, when Keagy became the director at the request of Lantz. Keagy had owned a 12-unit apartment complex in the K-KAPS area from 1982. When asked at his deposition about his duties and responsibilities as director of K-KAPS, Keagy responded, "Nobody ever gave me an agenda or a list of anything. It was up to me what did I see fit to do." (Keagy Depo. at 121). Keagy set the agenda for the K-KAPS meetings. (Id. at 123). Keagy was not an employee of the City, nor did he receive compensation for his work as the K-KAPS director. As such, the city did not give Keagy any guidelines as to what he could or could not do as K-KAPS director.

Keagy was a particularly vigilant association director. For example, he called apartment owners and advised them to get rid of problem tenants, asked owners why they did not attend the K-KAPS meetings, told building managers to clean up trash, and compiled the "wish well" list.4 In addition, Keagy advocated that area owners not rent to participants in the Section 8 Prototype, which assists recovering substance abusers, because the program was too...

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