Housing Discrimination Lawsuits and Damages

On 11/17/19 Newsday published "Long Island Divided" a report of the state of housing discrimination on Long Island.

Private discrimination lawsuits are about to flood the courts and suits can result in 6 to 7 figure awards. A discrimination plaintiff bringing a court proceeding will seek actual damages (direct for loss of housing and consequential of emotional distress for loss of dignity), punitive damages, statutory penalties, attorneys' fees and costs.

Read the full article by Andrew Lieb, Esq. published in The Suffolk Lawyer here. 

Case Alert: Title Regulation 208 is Back - No More Wining and Dining Permitted - DFS Enforcement is Coming

On December 26, 2019, the Appellate Division, First Department, reversed the Supreme Court and dismissed the New York State Land Title Association's challenge to Regulation 208.

Now, title insurance underwriters and their agents may not offer free meals and beverages, tickets to entertainment events, gifts, golf outings, parties, office supplies and the like as we had previously discussed in the November 2019 article, No More Title Insurance Bribes: Compliance Protocol needed at Every Title Insurance Agency. 

The only aspects of Regulation 208 which remain annulled after this decision are the ancillary fees at 228.5 and the closer payment restrictions.

To understand the current title landscape, read our blog from January 19, 2019, Title Insurance Regulation 208 is Back - Soliciting Title Business is Seriously Restricted Yet Again.

Now, after the December 26 decision, the only possibilities that can change the new reality of the title insurance industry in New York are:

• An application for leave to appeal to the Court of Appeals is made and granted, then, the matter is heard and reversed;
• New regulations are issued by DFS; or
• New legislation is enacted. 

Title insurance companies should immediately issue policy notices to their staff, conduct trainings and prepare for DFS enforcement. 

New Law: Foreclosure Standing Never Waived - Renew Your Case Today

On December 23, 2019, S5160 was enacted and "the defense, in a mortgage foreclosure action, of the plaintiff's lack of standing is not waived because of the defendant's failure to raise such defense in his or her responsive pleading."

A standing defense is utilized to argue that the plaintiff is not the right party to sue in that it's not the owner of the mortgage or debt and has not been appointed the power by such owner to pursue the lawsuit. This is one of the most significant changes to the foreclosure litigation practice since the Great Recession and will impact litigation for years to come.

Real Property Actions and Proceedings Law section 1302-a is an early Christmas present to defendants in ongoing litigation as it took effect immediately and appears to apply up until sale even if a Judgment of Foreclosure has already been ordered. Specifically, the new section states that "[a] defendant may not raise an objection or defense of lack of standing following a foreclosure sale." As such, it appears the defense of standing can be raised at any time before the sale.

If you are defending a case that is post-Judgment of Foreclosure and Sale and pre-auction sale, you may want to consider bringing an Order to Show Cause with a Motion to Renew pursuant to Civil Practice Law & Rules Rule 2221-e immediately.

New Law: The Return of the Yellowstone Injunction

On December 20, 2019, A2554 was enacted to "[p]rohibit[] commercial leases from including a waiver of the right to a declaratory judgment action and states that the inclusion of such a waiver in a commercial lease shall be null and void as against public policy."

New Real Property Law section 235-h took effect immediately on signing.

Welcome back Yellowstone Injunctions - it's like you never left us in the commercial arena. Commercial tenants facing eviction should consult with an attorney to get an injunction immediately before they are evicted.

New Law: Prospective tenants can obtain history of gas & electric charges incurred

On December 20, 2019, Senate Bill S3585 became law.

This bill's purpose is that it "[r]equires gas and electric utility companies to make available to any landlord and lessor of residential rental premises, upon the request of a prospective tenant or lessor of a residential unit, information concerning gas and electric charges incurred from prior occupants of the dwelling."

The bill's justification explains that "[p]eople should have the right to inquire from a gas and electric company the amount of the bills being paid for heat and electric service by the prior customer before they move into a residence. They should not have to rely on a landlord or homeowner's word about how much it costs to heat a residence."

This new law, Public Serivce Law section 66-p, is effective on 4/18/2020.

We Now Offer Real Estate Brokerage Video Compliance Trainings & Certifications

Lieb Compliance is now offering real estate brokerage companies a private online portal with customized video compliance classes and certifications for their agents. Certifications include Fair Housing & Discrimination, Rentals (Tenant Protection Act of 2019), Agency Disclosure, Sexual Harassment Prevention and more.

To learn more visit www.realestatecompliancetraining.com