Technically your "contract" - the lease agreement -  is only with the husband, which is most likely against public policy here and maybe set up that way so that she does not appear to have liability for being a "bad" landlord, especially if as you say she is a prominent member of the community.  But the reality is that she shared in the proceeds of the contract - your rent - and if the suit is based upon something about the premises - a breach of the contract based upon same is the same - then she is also liable as the owner.  So the short of it is yes, name her as well.  Let it be her problem to explain to the judge why she should NOT be named. Good luck.