Metro. Fair Hous. Council of Okla., Inc. v. Pelfrey
Metro. Fair Hous. Council of Okla., Inc. v. Pelfrey
Opinion of the Court
Plaintiffs filed this action alleging that Walter Ray Pelfrey ("Mr. Pelfrey") has engaged in a pattern or practice of discrimination based on sex-by sexually harassing individual plaintiffs and others-in the course of his ownership and operation of residential rental properties. The remaining defendants are alleged to be directly liable under the Fair Housing Act ("FHA"),
Summary judgment is appropriate only "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). "A genuine dispute as to a material fact exists when the evidence construed in the light most favorable to the non-moving party, is such that a reasonable jury could return a *1252verdict for the non-moving party." Carter v. Pathfinder Energy Servs., Inc.,
Under the FHA, a person may be directly liable for "[f]ailing to take prompt action to correct and end a discriminatory housing practice by a third-party, where the person knew or should have known of the discriminatory conduct and had the power to correct it."
The residential rental properties at issue in this action appear to have been owned at different relevant times by Mr. Pelfrey individually and as trustee of the W. Ray Pelfrey Revocable Trust dated March 1, 2002 (the "Ray Trust"), Omega Enterprises, LLC ("Omega"), Pelfrey Investments Co., LLC ("PIC"), and Mrs. Pelfrey as trustee of the Rosemarie Pelfrey Revocable Trust dated March 1, 2002 (the "Rosemarie Trust). See, e.g. , Doc. Nos. 134-3, 134-8, 134-15, 135-13-135-23, 140-1-140.2, 140-12, 141-24-141-28.
None of the plaintiffs rented properties owned by the Rosemarie Trust prior to July 31, 2015. Forty-eight properties owned by Omega were conveyed to the *1253Rosemarie Trust on July 31, 2015. Id. at 9 [Fact # 44]. On September 15th, 2015, an additional 12 properties were conveyed the Rosemarie Trust. Id. [Fact # 45].
Mrs. Pelfrey, as trustee, may be vicariously liable for Mr. Pelfrey's action towards plaintiffs who rented properties owned by the Rosemarie Trust. The FHA definition of a "person" includes trustees.
Three plaintiffs lived in properties that were owned by the Rosemarie Trust during a period of time when Pelfrey Rentals, acting through Mr. Pelfrey, managed the properties. Raquel Hall-Hubbard resided at 423 NE 115th Street, Oklahoma City, after the property was transferred to the Rosemarie Trust on September 15th, 2015. Doc. # 134, p. 2 [Fact # 1]; Doc. # 140-2; Doc. 135-13.
Because the Rosemarie Trust was the admitted owner of these three properties during the time periods shown, and Mrs. Pelfrey as the trustee is personally liable for torts committed in the course of administering the trust, Mrs. Pelfrey is vicariously liable as a matter of law for any of Mr. Pelfrey's actions towards those three plaintiffs that occurred during this time period of ownership. Because the Rosemarie Trust relied on Pelfrey Rentals-acting through Mr. Pelfrey-to manage the properties, if Mr. Pelfrey is found to have sexually harassed these three plaintiffs in violation of the FHA during this period of Rosemarie Trust ownership, such sexual harassment would have been aided *1254and abetted by the agency relationship that necessarily existed to manage the properties. To this extent alone, summary judgment will be entered holding Mrs. Pelfrey vicariously liable as trustee of the Rosemarie Trust under the FHA for Mr. Pelfrey's actions during the period of Rosemarie Trust ownership of those three properties.
Plaintiffs also argue that Mrs. Pelfrey is vicariously liable to all plaintiffs as a de facto partner in Pelfrey Rentals or that Pelfrey Rentals was a joint venture between Mr. and Mrs. Pelfrey. Plaintiffs further argue that, because Mr. and Mrs. Pelfrey were both members of PIC and that PIC and Pelfrey Rentals were jointly utilized to control and run "Pelfrey rental operations," a joint venture was established such that vicariously liability would attach to Mrs. Pelfrey for actions related to all Pelfrey rental operations. Defendants strongly contest that Pelfrey Rentals or PIC were any form of partnership or joint venture between Mr. and Mrs. Pelfrey.
A genuine dispute exists as to material facts relating to ownership and control of Pelfrey Rentals, management and control of PIC, and whether Mr. and Mrs. Pelfrey operated any enterprise as a partnership or joint venture. Accordingly, both partial motions for summary judgment, beyond the limited determinations above, will be denied as to Mrs. Pelfrey's liabilities in this action.
Defendants also move for summary judgment as to certain claims presented by plaintiff Collins. As noted above, the court has already concluded that Mrs. Pelfrey will be vicariously liable as trustee of the Rosemarie Trust if Mr. Pelfrey is found to have violated the FHA during the time period in which the Rosemarie Trust owned 345 NW 86th Street and that otherwise, genuine issues of fact remain regarding Mrs. Pelfrey's liabilities. Plaintiffs concede, however, that summary judgment should be entered in favor on Omega and PIC on Collins' because neither owned 345 NW 86th Street. Accordingly, defendants' motion regarding Collins' claims will be granted in part only as to defendants Omega and PIC.
Accordingly, plaintiffs' Motion for Partial Summary Judgment [Doc. # 134] is GRANTED in PART and DENIED in PART . The motion is granted such that Mrs. Pelfrey will be vicariously liable as a matter of law as trustee of the Rosemarie Trust for any of Mr. Pelfrey's actions directed at plaintiffs Hall-Hubbard, Pennon, and Collins that are found to violate the Fair Housing Act during the period of time these plaintiffs resided in properties owned by the Rosemarie Trust. The motion is otherwise denied. Defendants' Motion for Summary Judgment [Doc. # 135] is also GRANTED in PART and DENIED in PART . The motion is granted as to plaintiff Collins' claims of invasion of privacy against Omega and PIC. The motion is otherwise denied.
IT IS SO ORDERED .
References to filings with this court are to the CM/ECF document and page number.
The parties disagree as to whether these properties were jointly owned by Mr. and Mrs. Pelfrey or whether they were owned by Mr. Pelfrey alone.
Under the Restatement (Third) of Trusts § 106, a trustee is personally liable "for a tort committed in the course of trust administration ... if the trustee is personally at fault. "
Contrary to plaintiffs' contention, Lot 12, Block 3 of Summit Ridge Section I, representing 423 NE 115th Street, was not transferred to the Rosemarie Trust by the Warranty Deed dated March 31, 2002; Doc. 134-3 at p. 4.
Reference
- Full Case Name
- METROPOLITAN FAIR HOUSING COUNCIL OF OKLAHOMA, INC. v. Walter Ray PELFREY
- Cited By
- 5 cases
- Status
- Published