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Rives V. 164 23Rd Street Jackson Heights, Inc

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Rives V. 164 23Rd Street Jackson Heights, Inc CITY OF NEW YORK COMMISSION ON HUMAN RIGHTS -------------------------------------- X In the Matter of the Complaint of X X LUIS RIVES, X X Complainant, X X -against- X Complaint No. X H-92-0115 164 23RD STREET JACKSON HEIGHTS, INC. X and MARGUERITE PARK, X RECOMMENDED X DECISION & ORDER Respondents. X -------------------------------------- X BEFORE: Rosemarie Maldonado Chief Administrative Law Judge Hearings Division APPEARANCES: For the Complainant Luce, Forward, Hamilton & Scripps 153 East 53rd Street New York, New York 10022 By: Anne Turilli, Esq. Lourdes M. Slater, Esq. For the Commission Robert Hammel, Esq. Deputy Commissioner for Law Enforcement NYC Commission on Human Rights 40 Rector Street New York, New York 10006 By: Nancy Alisberg, Esq. For the Respondent Goldstein & Greenlaw 80-02 Kew Gardens Road Kew Gardens, New York 11415 By: Abbey F. Goldstein, Esq. CITY OF NEW YORK COMMISSION ON HUMAN RIGHTS -------------------------------------- X In the Matter of the Complaint of X X LUIS RIVES, X Complainant, X X -against- X Complaint No. X H-92-0115 164 23RD STREET JACKSON HEIGHTS, INC. X X and MARGUERITE PARK, X X Respondents. X -------------------------------------- X RECOMMENDED DECISION AND ORDER I. Complaint and Hearing Summary............................? II. Summary of Parties' Contentions..........................? III. Findings of Fact.........................................? IV. Conclusions of Law.......................................? V. Damages and Affirmative Relief...........................? VI. Recommended Order........................................? I. COMPLAINT AND HEARING SUMMARY Luis Rives filed a verified complaint with the New York City Commission on Human Rights on September 3, 1991, alleging that Respondents 164 23rd Street, Jackson Heights, Inc. and Marguerite Park violated Sections 8-107(5)(a)(1) and 8-107(5)(a)(3) of the New York City Administrative Code ("Code") by refusing to approve his application to purchase a cooperative apartment because of his national origin and marital status. Respondents filed a verified answer on November 1, 1991, denying the allegations and setting forth numerous affirmative defenses. Complainant filed an amended complaint on September 2, 1992, alleging that the Respondents violated Code Section 8-107(5)(a)(3). Respondents filed an amended answer on October 30, 1992, denying the allegations in the amended complaint. The complaint was referred to the Hearings Division on August 4, 1994. A hearing was held by Chief Administrative Law Judge Rosemarie Maldonado on April 7, 10 and 14, 1995. After evaluating the testimony and documentary evidence offered at the hearing, and assessing the credibility of witnesses, this tribunal finds for the Complainant on the national origin claim. The marital status claim is dismissed. II. SUMMARY OF THE PARTIES' CONTENTIONS A. Complainant Complainant alleges that he was financially qualified to purchase apartment 42 in Respondent co-op as evidenced by the application he submitted to Respondents. He contends that the application was rejected because he is a single, Latino male and that Respondent Marguerite Park made statements that evinced her discriminatory intent. B. Respondents Respondents allege that Complainant was rejected for an array of non-discriminatory reasons, including their belief that he was not financially qualified to make the purchase or to meet future co-op expenses. They allege that Complainant's national origin and marital status were not a factor in their decision. III. FINDINGS OF FACT 1. The Queensboro Buildings are a group of apartment buildings in Jackson Heights, Queens. By all accounts, the Queensboro Buildings are unique and desirable residences (T. 160161,413).1 They were granted landmark status sometime after 1991 (T. 353). 2. The 34-37 80th Street cooperative building ("co-op") at issue in this case is part of the Queensboro Buildings (T. 81, 155). It is owned by Respondent 164 23rd Street Jackson Heights, Inc. The co-op Board is comprised of ten shareholders -- one representative from each unit (T. 292-293, 411). Respondent Marguerite Park has been the Board president since approximately 1987 (T. 361, 410-411). 3. Prior to 1991, Respondent co-op had hired Queensboro Corporation as a managing agent to process applications, 1 Numbers in parentheses preceded by "T." refer to pages in the transcript; numbers and letters preceded by Cx. and Rx. refer investigate applicants and make recommendations for purchases (T. 430-431). After the Queensboro Corporation went out of business in or around 1991, the co-op Board chose to review purchase applications without professional assistance (T. 430, 535-536). In 1991, the co-op Board required that purchasers make downpayments of no less than 25% of the purchase price and that co-op related expenses not exceed 25% of annual income (T. 328, 433, 455; Cx. 7). 4. Louis Lopardi is a licensed real estate broker (T. 1719). Between 1987 and 1994, he closed approximately seventeen sales for the Queensboro Buildings (T. 18-19, 42-43). Prior to August of 1991, Lopardi had submitted two applications to the Board of the Respondent co-op. He submitted the application of Lois Shagrue, which was approved, and that of the Johansens, which was rejected (T. 20-21, 23-24). 5. Although his business dealings with the Respondent co-op were generally cordial, he did have a disturbing encounter with Respondent Park during the pendency of the Johansen application (T. 39-40). Lopardi encountered an apparently agitated Park in front of the co-op. She said to him: Don't think you are going to put just anyone in this building . [D]on't think you are going to pull here what you pulled at 82nd Street last month . If anyone sues to get in here, I'll hold you personally responsible (T. 26-28; Cx. 1). Lopardi was confused by Park's comments but later learned that two independent brokers had helped to initiate a discrimination respectively to the exhibits received in evidence from suit against another cooperative apartment building in the area (T. 37 - 38). Despite this encounter, Lopardi continued to show apartment 42 at the Respondent co-op to prospective purchases (T. 39-40). 6. Complainant Luis Rives is an unmarried male who was born in Havana, Cuba, immigrated to the United States in 1966 and earned an architecture degree in 1979 (T.152, 153). Between 1988 and 1990 he was self-employed and received most of his income from three architectural firms (T. 152, 153; Cx.7). In 1990 Complainant earned approximately $56,400 and had approximately $108,000 in liquid savings (T. 183, 282; Cx.7). 7. In November 1990, Complainant saw a classified advertisement in the New York Times announcing the availability of apartments for sale in the Queensboro Buildings (T. 155). Complainant had lived in Jackson Heights since 1967 and had always admired the Queensboro Buildings' expansive architecture and design (T. 159-161). 8. Complainant called Louis Lopardi, the licensed real estate broker who had placed the advertisement, and arranged a viewing of apartment 42 -- a three bedroom unit at the 34-37 80th Street cooperative building (T. 157, 158; Cx. 1). Complainant "loved" the apartment and was pleasantly surprised to find that its list price was under $150,000 (T. 157, 158, 161). 9. After viewing apartment 42 two or three times, Complainant and seller Elizabeth Huron reached an agreement for its purchase (T. 161, Cx.1). They executed a contract of sale Complainant and Respondents. for $145,400, and agreed that Complainant would make a $75,400 downpayment and finance $70,000 through a mortgage (T. 161, 183; Cx.7). Maintenance on the unit was $317 per month (T. 488, 547; Cx.1). 10. As required, Complainant submitted an application to the co-op Board for its approval (T. 45, 162). Lopardi took primary responsibility for the application's packaging and submission (T. 45, 166). Although the Board did not have a standard application form to complete, Lopardi was familiar with the standard requirements after having completed seventeen closings for the Queensboro Buildings (T. 18-19, 42-43). Complainant's application package included a letter of introduction from the broker, six letters from three people who served as both business and personal references, a bank reference letter, bank and mutual fund account statements and 1040 tax forms for 1988 through 1990 (T. 206-207; Cx. 7). 11. Lopardi delivered Complainant's application to Respondent Park in February 1991 (T. 45). Respondent Park looked at the application and said, "If this Luis gets into my building then I don't care who gets in, black, yellow, whatever" (T. 45-4-7; Cx. 2). She then complained that the building did not deserve all her work and sacrifice (T. 47). Although Respondent Park continued to speak, Lopardi was too stunned by her outburst to listen (T. 4547, 51-59). He did not immediately tell Complainant about Park's comments because he did not want to discourage him (T. 60-61). 12. The Rives application was the first to be processed by the co-op Board without the assistance of a management agency (T. 430). Respondent Park had primary responsibility for Complainant's application. She received the package from Lopardi and requested additional information from him on two occasions (T. 45, 427-430). She contacted an accountant to review the tax forms submitted by Complainant and solicited the opinion of an architect on the relative health of Complainant's profession (T. 297, 435-436, 438). 13. About one month after receiving Complainant's application, Respondent Park called Lopardi to request additional tax information (T. 62-63, 85-86, 146, 168). Complainant complied with this request and submitted his schedule C tax forms through Lopardi (T. 90, 212). Approximately three weeks later, Respondent Park told Lopardi that the backs of certain tax forms were missing (T. 64). Complainant admits that he had not submitted the back page of certain tax forms because they were inapplicable to him and thus they were blank.
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