Owners Can Be Held Responsible for Broker's Source of Income Discrimination Against Prospective Tenant

A prospective tenant, who was eligible for housing vouchers through a NYC HIV/AIDS Services Administration (HASA) program, applied to rent an apartment. In response, landlord's real estate agent advised the applicant via email that, to the best of her knowledge, "the building is not approved to receive any housing assistance vouchers." Tenant then sued landlord and the agent for housing discrimination under NYC's Human Rights Law provision against housing discrimination based on source of income. Tenant's complaint didn't state that the landlord itself engaged in discriminatory conduct but that it was "vicariously liable for the discriminatory acts" of the real estate agent.

The court denied landlord's request to dismiss the complaint against it, finding that the complaint sufficiently alleged a cause of action because the real estate agent acted as its agent. Landlord then sought to reargue the court's decision. The court again ruled against landlord, finding that NYC Admin. Code Section 8-107(5)(a) applied to owners or any agents of the owners. The court stated that it was well established that, under common law, principals may be held vicariously liable in tort for the acts of their agents acting within the scope of their authority. An action based on housing discrimination was in effect a tort action and ordinary tort-related vicarious liability rules applied. 

Newson v. Vivaldi Real Estate Ltd.: Index No. 452625/2022, 2023 NY Slip Op 34507(U)(Sup. Ct. NY; 12/21/23; Sattler, J)