Smith v. Pacific Properties & Development Corp.

In a case of first impression, we must decide whether a disabled person seeking to enforce rights created by § 3604(f)(2) of the Fail 1 Housing Amendments Act (“FHAA”), Pub.L. No. 100-430, 102 Stat. 1619 (codified as amended at 42 U.S.C. §§ 3601-3619 , 3631 (1988)), must have an interest in actually purchasing or renting a particular property or dwelling in order to allege a discriminatory violation. See 42 U.S.C. § 3604 (1988). We also face a related question: whether Plaintiff-Appellant Disabled Rights Action Committee (“DRAC”) may have organizational standing to allege FHAA violations based on its own articulated “injury in fact.” Because we answer the first question in the negative and the second in the affirmative, we reverse the district court’s dismissal for failure to state a claim and denial of motion to reconsider, and remand for further proceedings. We do, however, agree with the district court that disgorgement, one of the remedies sought by Appellant, is inappropriate in any case and therefore also affirm in part.

Facts And Procedural History

The nature of the district court’s dismissal requires us to accept as true the factual allegations of DRAC’s complaint and to…