Morris v. Flaig
| Decision Date | 31 March 2007 |
| Docket Number | No. 02-CV-5988(JFB)(VVP).,02-CV-5988(JFB)(VVP). |
| Parties | Elise MORRIS and Douglas Katsaros, Plaintiffs, v. Herbert FLAIG and Marilyn Flaig, Defendants. |
| Court | U.S. District Court — Eastern District of New York |
Mark H. Bierman, Beranbaum, Menken, Ben-Asher and Bierman, LLP, New York, NY, for Plaintiffs.
Steven Lee Sonkin, Marshall, Conway & Wright, Andrew P. Saulitis, Andrew P. Saulitis, P.C., New York, NY, for Defendants.
Plaintiffs Elise Morris ("Morris") and Douglas Katsaros ("Katsaros") (collectively "plaintiffs") bring the instant action against their former landlords, defendants Herbert Flaig and Marilyn Flaig (collectively, "defendants"), alleging state claims, as well as a violation of the federal Residential Lead-Based Paint Hazard Reduction Act ("RLPHRA"), arising from a lead-paint condition in their Brooklyn residence. In particular, plaintiffs' lawsuit focuses on their assertion that, while they were tenants in a four-story Brooklyn brownstone, the defendant landlords allowed a serious lead-paint condition to exist in the residence for many years. Defendants deny any knowledge of the condition until 2002, when plaintiffs had the residence tested and high levels of lead paint were discovered, at which time defendants sought to remedy the condition. Despite the landlords' efforts, lead paint was again discovered at the residence in 2003. Plaintiffs alleged that their young daughter's diagnosis of pervasive developmental disorder was caused by the lead-paint condition and sought, among other things, recovery for intentional infliction of emotional distress for their concern over their daughter's impairment as a result of defendants' alleged conduct in allowing the lead-paint condition to persist.
A jury trial took place from May 15, 2006 through May 30, 2006, when the jury (1) found defendants liable for the plaintiffs' claims of negligence and breach of the implied warranty of habitability; and (2) declined to find defendants liable as to plaintiffs' federal claim under the RLPHRA, as well as plaintiffs' claims for gross negligence, intentional infliction of emotion distress, intentional misrepresentation, and negligent misrepresentation. With respect to damages, the jury awarded $5,268 in compensatory damages (for out-of-pocket expenses when plaintiffs vacated the residence for several weeks in July 2002 during the lead paint remediation) and $110,000 in punitive damages against defendant Herbert Flaig in connection with his breach of the implied warranty of habitability.
Presently before the Court are post-trial motions brought by both parties. Plaintiffs move for partial judgment notwithstanding the verdict under Rules 50 and 59 of the Federal Rules of Civil Procedure, to the extent of (1) granting a new trial on the issue of the rent abatement due to plaintiffs; and (2) entering judgment as a matter of law on the federal RLPHRA claim and (3) granting a new trial on RLPHRA damages. Plaintiffs also seek attorneys fees, costs, and disbursements under the RLPHRA or, alternatively, under N.Y. Real Prop. Law § 234. Defendants move for judgment as a matter of law pursuant to Fed.R.Civ.P. 50(b) setting aside the punitive damages award or, alternatively, for remittitur or amendment of the judgment as to the amount of punitive damages, pursuant to Fed.R.Civ.P. 59. For the reasons that follow, (1) plaintiffs' Rule 50(b) and Rule 59(a) motions are denied in their entirety, and (2) defendants' Rule 50(b) motion to set aside the punitive damages award in its entirety is denied, but defendants' Rule 59 motion for remittitur on the punitive damages is granted.
Defendants Herbert and Marilyn Flaig owned and resided in a brownstone building in Brooklyn, New York (hereinafter, "the residence" or "the premises"), that they had purchased in 1971. (Tr. 133, 643-44.) From 1995 to 2002, they rented the property to plaintiffs Elise Morris and Douglas Katsaros. (Tr. 137, 144.) Herb Flaig represented to plaintiffs that there was no problem with the existing paint, and assured Morris that he had raised his own family in the residence. (Tr. 135-36, 168-69, 170.) The parties entered into a lease agreement on July 14,. 1995, for a term of one year from September 1, 1995 through August 31, 1996, and renewed the lease the following year. Soon after moving into the building, Morris gave birth to a daughter, Kati Katsaros. (Tr. 187.) During August 1997, Mr. Katsaros' three-year-old daughter Zoe Katsaros, came to live with plaintiffs. (Tr. 284.) Defendants were aware of the presence of both children at the residence. (Tr. 187, 340.)
In June 2002, plaintiffs became concerned about the presence of lead paint at the premises due to peeling paint on the walls. (Tr. 206.) Plaintiffs purchased a kit for lead-based paint testing, and the walls of the premises tested positive for the presence of lead. (Tr. 206-07.) They informed defendants about the results of the test, and defendants paid for professional testing to be performed. (Tr. 207-11.) On July 8, 2002, the premises were inspected for lead and the results were again positive. The levels of lead-based paint detected at the premises were thirty to forty times beyond "acceptable" levels for lead-based paint as set by the Environmental Protection Agency ("EPA") and the U.S. Department of Housing and Urban Development ("HUD"). When the plaintiffs learned of the positive results, they vacated the premises on July 12, 2002. (Tr. 217-218.) Defendants paid for the abatement of the lead paint, whereby the peeling paint was scraped from the ceiling and a sealant was applied over portions of the wood molding. (Tr. 219, 227.) At the end of July, plaintiffs were informed that the work had been completed and that they could return to the residence. (Tr. 226.) At the beginning of August, the plaintiffs resumed living at the residence. (Tr. 229.) In January 2003, they learned that the ground floor apartment had tested positive for lead paint, despite previous assurances to plaintiffs that it was "fine." Subsequently, Morris also discovered that areas that were the subject of the 2002 lead paint abatement had not been repaired. (Tr. 231-33.)
Prior to this time, in 1997, plaintiffs had begun to visit a therapist, and their daughter, Kati, was evaluated by a clinical professor of pediatrics.1 (Tr. 192-93, 199, 205, 274, 284.) Kati was diagnosed with symptoms of pervasive developmental disorder. (Tr. 205, 274.) As a result, Morris experienced depression and anxiety about her daughter's condition. (Tr. 214-16.) Morris was treated with therapy and medication. (Tr. 284-87, 575-85.) However, after learning of the positive results of the lead kit, Morris became concerned that lead-based paint may have caused her daughter's condition. (Tr. 214-16, 590.) Her depression and anxiety increased and she sought further medical services. (Tr. 305, 622-23.)
On November 12, 2002, plaintiffs filed the instant action. In their amended complaint, filed on April 8, 2003, plaintiffs asserted eleven causes of action: (1) breach of implied warranty of habitability, (2) constructive eviction, (3) negligence, (4) gross negligence, (5) intentional infliction of emotional distress, (6) negligent infliction of emotional distress, (7) violation of New York City's Local Law 1, (8) nuisance, (9) intentional/fraudulent misrepresentation, (10) negligent misrepresentation, and (11) violation of the RLPHRA, 42 U.S.C. §§ 4851-56. Plaintiffs sought relief in the form of rent abatement, compensatory damages, punitive damages, and treble damages under the RLPHRA.
On February 27, 2004, defendants moved for summary judgment as to all claims, and plaintiff cross-moved for partial summary judgment on March 2, 2004. On July 29, 2005, Magistrate Judge Viktor V. Pohorelsky issued a Report and Recommendation granting in part and denying in part. defendants' motion for summary judgment. Specifically, plaintiffs' claims of constructive eviction, negligent infliction of emotional distress, and nuisance were dismissed. The Honorable John Gleeson adopted the Report and Recommendation in full on October 3, 2005.
This case was reassigned to the undersigned on February 10, 2006. From May 15, 2006 through May 30, 2006, a jury trial was held before this Court on the remaining claims. On May 25, 2006, the jury found in favor of the plaintiffs as to their claims for breach of the implied warranty of habitability and negligence, and awarded $5,268.01 in compensatory damages against both defendants. (Court Ex. 5.) The jury declined to award rent abatement to plaintiffs. (Court Ex. 5.) The jury also determined that punitive damages were warranted against defendants. (Court Ex. 5.) After further deliberation, the jury awarded $110,000 in punitive damages against defendant Herbert Flaig. (Court Ex. 6.)
On July 21, 2006, both parties filed post-trial motions. Defendants moved for judgment as a matter of law notwithstanding the verdict pursuant to Fed.R.Civ.P. 50(b) and for remittitur or amendment of the judgment pursuant to Fed.R.Civ.P. 59 as to punitive damages against the defendants. Plaintiffs moved under Fed. R.Civ.P. 59 to set aside the, jury verdict and to hold a new trial regarding rent abatement. Plaintiffs also moved under Fed.R.Civ.P. 50(b) for judgment as a matter of law notwithstanding the verdict regarding plaintiffs' RLPHRA claim, and for a new trial on statutory damages. In addition, plaintiffs seek costs, treble damages, and attorneys' fees pursuant to the RLPHRA. Oral argument was held on ...
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