03/02/2020
Fair Housing Council v. Roommate. Com, LLC, 666 F. 3d 1216 - Court of Appeals, 9th Circuit 2012 - Google Scholar
and matching of users based on those characteristics, violate the Fair Housing Act ("FHA"), 42 U.S.C. § 3601 et seq.,
and the California Fair Employment and Housing Act ("FEHA"), Cal. Gov't Code § 12955.
The district court initially dismissed the claims, holding that Roommate was immune under section 230 of the
Communications Decency Act ("CDA"), 47 U.S.C. § 230. We reversed, holding that Roommate was protected by the
CDA for publishing the "Additional Comments" section, but not for (1) posting questionnaires that required disclosure of
1219 sex, sexual orientation and familial status; (2) limiting the *1219 scope of searches by users' preferences on a
roommate's sex, sexual orientation and familial status; and (3) a matching system that paired users based on those
preferences. Fair Hous. Council v. Roommates.com, LLC, 521 F.3d 1157, 1166 (9th Cir.2008) (en banc).
Our opinion was limited to CDA immunity and didn't reach whether the activities, in fact, violated the FHA. On remand,
the district court held that Roommate's prompting of discriminatory preferences from users, matching users based on
that information and publishing these preferences violated the FHA and FEHA, and enjoined Roommate from those
activities. Roommate appeals the grant of summary judgment and permanent injunction, and also the district court's
order awarding the FHCs $494,714.40 in attorney's fees. The FHCs cross-appeal the amount of the attorney's fees.
STANDING
Roommate argues that the FHCs lack standing because they didn't suffer actual injury. We've held that an organization
has "direct standing to sue [when] it showed a drain on its resources from both a diversion of its resources and
frustration of its mission." Fair Hous. of Marin v. Combs, 285 F.3d 899, 905 (9th Cir.2002). However, "`standing must be
established independent of the lawsuit filed by the plaintiff.'" Comite de Jornaleros de Redondo Beach v. City of
Redondo Beach, 657 F.3d 936, 943 (9th Cir.2011) (quoting Walker v. City of Lakewood, 272 F.3d 1114, 1124 n. 3 (9th
Cir.2001)). An organization "cannot manufacture [an] injury by incurring litigation costs or simply choosing to spend
money fixing a problem that otherwise would not affect the organization at all." La Asociacion de Trabajadores de Lake
Forest v. City of Lake Forest, 624 F.3d 1083, 1088 (9th Cir.2010); see also Combs, 285 F.3d at 903 ("[A]n organization
cannot, of course, manufacture the injury necessary to maintain a suit from its expenditure of resources on that very
suit...." (internal quotation marks omitted)).
Prior to commencing litigation, the FHCs investigated Roommate's alleged violations and, in response, started new
education and outreach campaigns targeted at discriminatory roommate advertising. The resources spent on those
campaigns were not associated with litigation. Because Roommate's conduct caused the FHCs to divert resources
independent of litigation costs and frustrated their central mission, we conclude that the FHCs have organizational
standing.
ANALYSIS
If the FHA extends to shared living situations, it's quite clear that what Roommate does amounts to a violation. The
pivotal question is whether the FHA applies to roommates.
I
The FHA prohibits discrimination on the basis of "race, color, religion, sex, familial status, or national origin" in the "sale
or rental of a dwelling." 42 U.S.C. § 3604(b) (emphasis added). The FHA also makes it illegal to
make, print, or publish, or cause to be made, printed, or published any notice, statement, or
advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or
discrimination based on race, color, religion, sex, handicap, familial status, or national origin, or an
intention to make any such preference, limitation, or discrimination.
Id. § 3604(c) (emphasis added). The reach of the statute turns on the meaning of "dwelling."
1220 *1220 The FHA defines "dwelling" as "any building, structure, or portion thereof which is occupied as, or designed or
intended for occupancy as, a residence by one or more families." Id. § 3602(b). A dwelling is thus a living unit designed
or intended for occupancy by a family, meaning that it ordinarily has the elements generally associated with a family
residence: sleeping spaces, bathroom and kitchen facilities, and common areas, such as living rooms, dens and
hallways.
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