Opinion ID: 765199
Heading Depth: 4
Heading Rank: 3

Heading: Ms. Waldman's Discriminatory Statement

Text: 44 The FHA makes it unlawful for owners or their agents to make any statement with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on color or an intention to make any such preference, limitation or discrimination. 42 U.S.C. S 3604(c); 24 C.F.R. 100.50(b)(4). Furthermore, HUD states that 42 U.S.C. S 3604(c) applies to all oral notices or statements by a person engaged in the rental of a dwelling. 24 C.F.R. 100.75(b). See also Soules v. HUD, 967 F.2d 817, 824 (2d Cir. 1992) (Openly discriminatory oral statements merit ...straightforward treatment.). Ms. Harris has asserted a prima facie case of discrimination under the FHA -- that Ms. Waldman's dis criminatory statement caused Ms. Harris emotional distress and disruption in the quiet enjoyment of her apartment. 45 The Itzhakis do not contest that Ms. Waldman made the statement; rather they contend that Ms. Waldman is not an agent or employee, thereby making any statements inadmissible. We disagree. 46 The question whether an agency relationship exists for purposes of the Fair Housing Act is determined under federal law, not state law. Cabrera v. Jakabovitz, 24 F.3d 372, 386 n.13 (2d Cir. 1994). The policy reason underlying the application of federal law is to avoid predicating liability for Fair Housing Act violations on the vagaries of state law. Id. Furthermore, the question of agency should be submitted to the jury unless the facts are clearly insufficient to establish agency or there is no dispute as to the underlying facts. Id. at 386. 47 Ms. Waldman has assisted the Itzhakis by collecting rent checks and showing vacant units to prospective tenants. Ms. Harris points to these facts supporting her contention that Ms. Waldman is an agent or employee of the Itzhakis. The Itzhakis, however, point to the fact that they don't pay Ms. Waldman or offer her any discount on rent, supporting their contention that Ms. Waldman is not their agent or employee. 48 HUD regulations define an agent under the FHA as any person authorized to perform an action on behalf of another person regarding any matter related to the . . . rental of dwellings, including offers, solicitations or contracts and the administration of matters regarding such offers, solicitations or contracts or any residential real estate-related transactions. 24 C.F.R. S 100.20 (emphasis added). Under HUD's definition, which is afforded deference, there are facts from which a jury could reasonably find that Ms. Waldman is an agent of the Itzhakis. 49 Federal Rule of Evidence (FRE) 801(d)(2)(D) requires the proffering party to lay a foundation to show that an otherwise excludable statement relates to a matter within the scope of the agent's employment. Breneman v. Kennecott Corp., 799 F.2d 470, 473 (9th Cir. 1986); Hoptowit v. Ray, 682 F.2d 1237, 1262 (9th Cir. 1982). If the jury finds that Ms. Waldman was the Itzhakis' agent, her statement --The owners don't want to rent to Blacks -- would be admissible, since it relates to a matter within the scope of the agency, i.e. showing empty apartments. 5 50 The Itzhakis contend that Ms. Waldman's statement should be treated as a stray remark, insufficient to establish discrimination. If the remark is unrelated to the decisional process, then it is insufficient to show discrimination. Merrick v. Farmers Ins. Group, 892 F.2d 1434, 1438 (9th Cir. 1990); Smith v. Firestone Tire and Rubber Co., 875 F.2d 1325, 1330 (7th Cir. 1989). Ms. Harris contends that Ms. Waldman acts as a filter for the Itzhakis, thereby making her comments related to her decision to recommend tenants. Viewing the evidence in the light most favorable to Harris, we cannot hold that Ms. Waldman's statement is a stray remark as a matter of law. Consequently, we reverse the district court's dismissal of Harris' discriminatory statement claim to the extent that retrospective relief is available.