Judge Dismisses Lawsuit Against Post Properties

Arlington, VA, Sept. 29, 2009 - In a ruling favorable to the apartment industry, Judge Richard Leon of the United States District Court on Sept. 28 granted Post Properties’ Motion for Summary Judgment and dismissed a lawsuit filed in 2006 by the Equal Rights Center (ERC) that had alleged violations of the Fair Housing and Americans with Disabilities Acts.

Post owns and manages 55 apartment communities with more than 19,864 apartment units in seven states and the District of Columbia. ERC is a civil rights organization that has filed many lawsuits against multifamily housing companies alleging that apartment units did not comply with the Fair Housing Act and the Americans with Disabilities Act.

"The decision is a major set-back for ERC and similar advocacy groups which have utilized litigation in an attempt to impose non-mandatory ‘safe harbor’ building codes on the industry, which were not authorized or contemplated by Congress,” Christopher Hanback, Partner, Holland & Knight, Washington, D.C., said. “Under this decision, advocacy groups cannot simply file suit against the entire portfolio of a company regardless of the company’s track record of providing accessible living and accommodations for their disabled residents.”

Judge Leon’s ruling is based on the concept of “standing,” which requires a plaintiff to prove injury to maintain a lawsuit. The court reasoned that although organizational plaintiffs such as ERC can establish standing “either on its own behalf, or on behalf of its members,” ERC filed its case alleging that it had sustained injuries that entitled it to bring the lawsuit.

The court noted that the injury sustained by the ERC “occurred as a result of its decision to investigate Post.” The court ruled that the ERC failed “to establish that the injuries it suffered were not due to a self inflicted diversion of resources.”

Having concluded that ERC had not suffered injury, the court concluded that it lacked standing to maintain the lawsuit and dismissed the case. Post Properties was represented by the Holland & Knight law firm.

“Post is gratified that the Court carefully considered the detailed record and dismissed the lawsuit in its entirety,” Post Properties’ CEO and President David P. Stockert said. “Post remains committed to serving its current and future residents with disabilities and to providing equal housing opportunities for all.”

“The Equal Rights Center is deeply disappointed in the recent ruling in the Post Property matter,” ERC’s Executive Director Donald L. Kahl said. “This ruling reverses a prior ruling of this same Court and ignores the consistent rulings in favor of the ERC on the same issue by every other federal district courts in the region. But more importantly, we believe that the ruling fails to address a substantial amount of evidence that was before the Court in this case, and does not correctly apply the law announced by both Supreme Court and several other Courts of Appeals. The Equal Rights Center continues to analyze the Court’s ruling and will take the appropriate actions in due course.”