A recent decision by New York’s Appellate Division, First Department, has confirmed that landlords can be held legally responsible for the discriminatory actions of their real estate brokers under the New York City Human Rights Law (NYCHRL). In an issue of first impression, the First Department found in Newson v Vivaldi Real Estate Ltd. that owners of housing can be held vicariously liable for the discriminatory conduct of their real estate brokers under the NYCHRL. If you have experienced housing discrimination, this ruling makes it clear that you can seek justice against landlords, even if the discrimination came from someone acting on their behalf.
The case involved allegations that a real estate broker refused to rent an apartment to the plaintiff because they intended to use HASA housing vouchers. The court found that landlords cannot avoid liability for discriminatory practices carried out by their brokers or other third parties involved in the rental process even if the prospective tenant never interacted with the landlord directly. In its decision, the court explained that the NYCHRL’s text and purpose require holding landlords accountable for their agents' actions. Without vicarious liability, landlords would be able to avoid responsibility unless they personally engaged in discrimination, which would weaken the protections the law is designed to provide. The court also noted that key remedies available under the NYCHRL, such as compelling a landlord to rent to an individual who was discriminated against, would not be effective if landlords were not held accountable for the actions of their agents. Further, the Court looked to administrative guidance from the New York City Commission on Human Rights, which reinforced that landlords are responsible for ensuring anyone involved in the rental process complies with anti-discrimination laws, even if those individuals are not directly employed by the landlord.
If you have been turned away from housing because of your source of income, race, disability, or another protected characteristic, this decision ensures that you have options for holding landlords accountable. You may have a claim if you have been denied housing or treated unfairly because of a lawful income source, such as Section 8 or HASA vouchers, or if you faced discrimination based on race, gender, familial status, disability, or another legally protected characteristic. This decision strengthens the rights of tenants and prospective tenants, making it possible to challenge unfair treatment and secure meaningful remedies. If you believe you have experienced housing discrimination in New York City, you may be entitled to financial compensation, an order requiring the landlord to rent to you, or other forms of relief. Discrimination in housing has no place, and the law is on your side.
Contact us today to discuss your story and explore your legal options. Let us help you fight for the housing you deserve and hold landlords accountable for their unfair business practices.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi, LLP focuses on complex civil litigation, including securities, antitrust, wage and hour and consumer class actions as well as shareholder derivative and merger and transactional litigation. The firm is headquartered in New York, and maintains offices in California, Georgia and Pennsylvania.
Since its founding in 1995, Faruqi & Faruqi, LLP has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, direct purchasers, consumers and employees.
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About Shawn R. Clark
Shawn Clark's practice is focused on employment litigation. Shawn is Of Counsel in the firm's New York office.
Shawn R. Clark
Of Counsel at Faruqi & Faruqi, LLP
New York office
Tel: (212) 983-9330
Fax: (212) 983-9331
E-mail: sclark@faruqilaw.com