Landlord Can Be Vicariously Liable for Broker's Source of Income Discrimination

The plaintiff, a city shelter occupant, was a client of the NYC HIV/AIDS Services Administration (HASA) and was entitled to a full HASA housing subsidy of $1,600 per month for a NYC apartment, which HASA would pay directly to a landlord. The plaintiff sued landlord and its real estate broker, alleging source of income discrimination under the NYC Human Rights Law after the broker rejected the plaintiff's rental application. The broker claimed that HASA vouchers weren't acceptable. Landlord asked the court to dismiss the case against it, arguing that it couldn't be held liable vicariously for the discriminatory conduct of its real estate brokers.

The court ruled against landlord, who appealed and lost. The court found that, without vicarious liability, landlords could evade liability under the NYC HRL except when they directly interacted with a prospective tenant. This was neither the mandate of the HRL nor supported by the legislative intent behind NYC HRL Section 8-107. HRL practice guidelines also provided that a landlord was responsible for the actions of anyone who played a role in processing rental applications, even if that person wasn't landlord's employee. Landlords can be held vicariously liable for their agents' discriminatory conduct, and a trial was needed to determine the facts in this case.

Newson v. Vivaldi Real Est. Ltd.: Index No. 452625/22, App. No. 2982, Case No. 2024-00261, 2025 NY Slip Op 00052 (App. Div. 1 Dept.; 1/7/25; Kennedy, JP, Kapnick, Scarpulla, Higgitt, JJ)