Court puts limits on Fair Housing Act litigation

In a case closely monitored by multifamily developers and disabled rights advocates across the country, the 9th U.S. Circuit Court of Appeals ruled that the right to sue over violations of the Fair Housing Act expires two years after a project's completion.

The court heard the case of Garcia v. Brockway with all 11 judges on March 25 and issued a 9-2 decision Tuesday, reaffirming a 2-1 decision by a court panel in September.

"This gives developers certainty and peace," said Josh Reisman, partner in the Las Vegas law office of Ballard Spahr Andrews & Ingersoll. "They can say, 'I was involved in construction of this project and the design and construction were completed on this date and two years have elapsed from this date, and I can no longer be sued.'"

Reisman argued the case on behalf of Michael Turk, builder of Craig Ranch Villas, formerly Villas at Rancho del Norte, completed in 1997. A disabled citizens' rights organization sued multiple defendants who had any part in designing and building the apartments, alleging inadequate sidewalk wheelchair ramps, lack of accessible building entrances and undersized interior doorways, among other Fair Housing Act violations.

The lawsuit was consolidated into Garcia v. Brockway. Reisman and his team argued that the statute of limitations begins to run upon completion of the building and issuance of the final certificate of occupancy.

Attorneys for Salt Lake City-based Disabled Rights Action Committee, plaintiffs in the case, argued that the statute of limitations should start after a disabled person encounters a violation.

"I think it's a big win," Reisman said. "From a business perspective, had the disabled advocates won the day, they would have perpetual liability for everybody who ever had a hand in the construction and design, including past and current owners. You could be a retired architect and 50 years later a disabled person could come onto the property and sue you."

What's interesting, he said, is that although the 9th Circuit is considered one of the nation's most liberal courts, nine of 11 judges sided with business.

The 9th Circuit's decision is final and the only way to challenge it is to appeal to the U.S. Supreme Court, which is very selective in hearing cases, Reisman noted.

Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.