May Jung LLP Announces Significant Victory in Stanton View Litigation: In an Unprecedented Decision, Court of Appeals Reverses Dismissal of Consumer Protection Claims against the District of Columbia

WASHINGTON, Sept. 12, 2024 /PRNewswire/ -- May Jung LLP is proud to announce a significant legal development in the ongoing Stanton View litigation involving six Black, female, low- to moderate-income first-time homebuyers who faced substantially unsafe living conditions after purchasing units at the RiverEast at Grandview Condominium complex in Southeast Washington, D.C. through the District of Columbia's Housing Purchase Assistance Program (HPAP).

In a groundbreaking decision, the District of Columbia Court of Appeals has reversed the lower court's dismissal of key claims filed under the District of Columbia Consumer Protection Procedures Act (CPPA). This ruling holds that the District of Columbia, through its Department of Housing and Community Development (DHCD), can be liable under the CPPA as a "merchant" when it facilitates the sale of substandard housing through government programs.

Background

The plaintiffs in this case are homebuyers who were promised affordable, habitable housing through the HPAP program. Shortly after moving into their units, the plaintiffs reported numerous issues with their brand new homes, including foundational cracks, sewage odors, mold, leaks, and electrical issues—all of which rendered their homes uninhabitable. Despite repeated requests for repairs and pleas for help from the District, these issues persisted, ultimately resulting in mandatory evacuations from their homes. The general contractors, Stanton View Dev., LLP and RiverEast at Anacostia, LLP, who received approval of the project and over $6 million dollars from the District, later filed for bankruptcy, leaving the homeowners with little recourse.

After Judge Lopez dismissed key claims against the District, including violations under the CPPA, the plaintiffs, represented by May Jung LLP, appealed the decision. On September 12, 2024, the D.C. Court of Appeals issued a ruling that reversed and remanded the dismissal of the CPPA claim, re-opening the door for the plaintiffs to pursue justice for the unfair and deceptive practices' claims alleged against the District.

Why This Ruling Is Important

This decision is unprecedented and marks a critical victory for housing justice and consumer protection in the District of Columbia. The Court of Appeals held that the District is a "merchant" under the CPPA under these facts, allowing claims for unfair and deceptive practices to proceed against the government entity for its role in facilitating the sale of uninhabitable housing. This is a significant step toward ensuring that government agencies are held accountable for their role in administering housing programs and protecting the rights of vulnerable homebuyers.

"This decision affirms the principle that nobody is above the law, including government entities, especially when consumers are harmed in such egregious ways related to their homes," said Je Yon Jung, lead counsel for the plaintiffs. "Our clients did everything that the District required of them to participate in the American dream of homeownership. Instead, they have been forced to spend years in a house of horrors and nightmares fighting for accountability and justice. While we awaited the court of appeal's correction of the dismissal of the District from the original case filed in early 2021, we have continued to litigate against several subcontractors and individuals involved with this property. To date, nobody has taken accountability for this debacle. We look forward to holding the District and all of the other responsible parties accountable."

Implications for Future Cases

This ruling not only provides the plaintiffs with the opportunity to pursue their claims but also sets a new legal precedent for holding government entities responsible under consumer protection laws. The case will return to the trial court before Judge Yvonne Williams for further proceedings, where the plaintiffs will pursue their CPPA claim, and will be consolidated with other cases involving the subcontractors and the individual owners of the bankrupt entities.

May Jung, LLP filed a related case in federal U.S. District Court alleging unconstitutional takings and first amendment retaliation against the District. May Jung LLP will continue to represent the plaintiffs as they fight for fair treatment, and the right to live in safe, habitable homes.

For more information or to schedule an interview with the legal team, please contact at [email protected]. For more information about May Jung LLP, visit www.mayjung.com.

SOURCE May Jung LLP