LAS VEGAS, NV - The U.S. Court of Appeals for the Ninth Circuit yesterday reaffirmed that the right to sue over design and construction violations of the Fair Housing Act (FHA) expires two years after a project's completion, favoring the argument made on a developer's behalf by Joshua Reisman, a partner in the Las Vegas office of Ballard Spahr Andrews & Ingersoll, LLP. The ruling followed the March 25 en banc rehearing of Garcia v. Brockway, a case that could affect any multifamily housing developments built since 1991.
"Across the country, it seems that lawyers, in the name of fair housing organizations, are scouring developments for FHA violations in an effort to force cash settlements," noted Reisman. "This trend that we're currently seeing is similar to the beginning of the construction-defect era."
Reisman defended a principal of an apartment complex built in 1997 who was recently sued by a disabled citizens' rights organization for alleged design-and-construction violations of the FHA. The organization's attorneys argued that the statute of limitations should start to run after a disabled person encounters a violation. Reisman countered that without a clearly defined start date for the statute of limitations, current and past owners of multifamily projects, including apartments and condominiums, as well as architects, engineers and contractors involved in them, would be exposed to perpetual liability. Further, that potential liability would affect financing and insuring for future projects.
The ruling yesterday adopted the 2-1 decision issued by a panel of the court after its initial hearing of Garcia v. Brockway in September. The rights organization petitioned for the en banc hearing after losing in the panel ruling. An appeal to the U.S. Supreme Court is expected.
Reisman is a partner in the firm's Litigation Department and concentrates his practice in state and federal courts, administrative agencies, and private mediations and arbitrations, focusing on general commercial litigation. Reisman was assisted in the case by Michael Skojec, a partner in Ballard Spahr's Baltimore office, who regularly represents developers in FHA design-and-construct cases all over the country. He currently represents national developers in the defense of the largest pending advocacy group case and the largest pending case with the United States Department of Justice.
Ballard Spahr Andrews & Ingersoll, LLP is one of the 100 largest law firms in the country with more than 500 lawyers in 11 offices in the Mid-Atlantic corridor and the Western United States. Ballard Spahr clients include Fortune 500 corporations, hospitals, universities, financial institutions, managed-care organizations, defense contractors, utilities and many other businesses. The firm also represents corporate directors, officers, and managers as well as other professionals including doctors, lawyers, public officials and accountants. Ballard Spahr combines a broad scope of practice with strong local market knowledge to represent companies, individuals, and other entities.
Source: Business Wire