Personal injury lawsuits typically arise in housing cooperatives when a member, a person of a member’s family, or guest are injured on the Cooperative’s real property. Injuries can range from slip-and-falls, physical confrontations or fighting, to criminal assault and battery. Since the range of different types of cases in which a Cooperative may be defending claims seeking liability and damages, this serves as an important reminder to Cooperatives, of the legal responsibilities that Cooperatives owe. Specifically, this article focuses on those duties owed to non-members, such as guests.

Membership Equity in a cooperative housing corporation is one of most fundamental characteristics, and benefits recognized in this unique form of housing and stock ownership. For housing cooperatives where members gain equity in their membership or stock certificate, whether or not based on increased value of the dwelling unit, improvements, or general trends in real estate markets, in instances where a member sells their membership, the return equity amounts frequently become issues of legal dispute. These disputes, if unresolved, can easily reach a point where a former member files a lawsuit against the Cooperative seeking money damages.

In the past, many cooperative housing providers prohibited pets. This policy resonated with its members who were tired of living next door to other members with barking dogs or caterwauling cats. Yet, federal and state law now require cooperative housing providers allow assistance animals. Assistance animals are animals which a disabled member may keep in a cooperative housing situation, as long as a medical provider is persuaded that the member needs the animal in order to overcome a specific disability and that the animal will ameliorate that disability.

With discrimination claims on the rise and the possible expansion of protected classes (i.e., sexual orientation or transgender status) from a recent United States Supreme Court opinion in Bostock v. Clayton Cty, Georgia, Nos. 17-1617 et. al., 590 U.S. ___ , (more) 140 S. Ct. 1731 (2020), in which the court held that under Title VII, it is unlawful discrimination for employers “to fail or refuse to hire, or to discharge any individual, or otherwise discriminate against any individual” because of their sexual orientation or transgender status, there is never a better time for housing cooperatives to refresh their knowledge of fair housing and employment issues. The law pertaining to fair housing, discrimination and sexual harassment claims are ever evolving and a complex field, so knowledge of key factors and best practices will put cooperatives in a better position to avoid unwarranted discrimination lawsuits. First, a recap of some fundamental laws, concepts and illegal conduct.

Among those horrifying things cooperative attorneys at our office, hear about are Board members who still do not get it! Did you know that there is such a thing as a “Fair Housing Tester?” Did you also know that these Testers are paid employees and that they are paid to contact your cooperative to see if your Board members and Management Staff are ensuring an equal opportunity to housing for all persons in protected classes? Can you even name all of the protected classes?

On December 19, 2019, the United States Court of Appeals for the Sixth Circuit issued an Opinion affirming a Michigan federal District Court’s dismissal of a condominium unit owner’s lawsuit alleging discrimination under the Fair Housing Act against a condominium association for its failure to ban smoking as a reasonable accommodation request. This case carries significance for condominium and other association-based communities in how courts continue to address claims under the Fair Housing Act relating to smoking inside a building or unit and the odors that result. This article goes over the history of the case, the Sixth Circuit Court’s opinion and analysis, as well as some key things that the association did that were noteworthy in the opinion.