Rodney Green, Sr. v. Mercy Housing, Inc. ( 2021 )


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  •                      FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    RODNEY GREEN, Sr.,                               Nos. 20-15134
    Plaintiff-Appellant,                   20-15358
    v.                              D.C. No.
    3:18-cv-04888-
    MERCY HOUSING, INC.; MERCY                            WHA
    HOUSING MANAGEMENT GROUP,
    INC.; MERCY HOUSING CALIFORNIA
    XXXVIII, a California limited                        OPINION
    partnership,
    Defendants-Appellees.
    Appeal from the United States District Court
    for the Northern District of California
    William Alsup, District Judge, Presiding
    Argued and Submitted March 2, 2021
    San Francisco, California
    Filed March 19, 2021
    Before: Bobby R. Baldock, * Kim McLane Wardlaw, and
    Marsha S. Berzon, Circuit Judges.
    Opinion by Judge Berzon
    *
    The Honorable Bobby R. Baldock, United States Circuit Judge for
    the U.S. Court of Appeals for the Tenth Circuit, sitting by designation.
    2                  GREEN V. MERCY HOUSING
    SUMMARY **
    Fair Housing Act / Costs
    The panel vacated the district court’s grant of costs to the
    defendant in an action under the Fair Housing Act, and
    remanded.
    Joining the First, Second, Fourth, and Fifth Circuits, the
    panel held that in exercising its discretion whether to award
    costs to a prevailing defendant under the Fair Housing Act’s
    fee-shifting provision, a district court must apply the
    Christiansburg standard, which requires the court first to
    determine whether the plaintiff’s claim was frivolous,
    unreasonable, or groundless.
    In a separate, concurrently-filed memorandum
    disposition, the panel affirmed in part and reversed in part
    the district court’s grant of summary judgment to the
    defendant and remanded for further proceedings.
    COUNSEL
    Irakli Karbelashvili (argued) and Irene Karbelashvili,
    AllAccess Law Group, Santa Clara, California, for Plaintiff-
    Appellant.
    **
    This summary constitutes no part of the opinion of the court. It
    has been prepared by court staff for the convenience of the reader.
    GREEN V. MERCY HOUSING                    3
    Michelle L. Younkin (argued) and Shirley C. Wang, Davis
    Wang APC, San Francisco, California, for Defendants-
    Appellees.
    OPINION
    BERZON, Circuit Judge:
    Rodney Green, Sr., a former tenant of Mercy Housing,
    Inc., appeals the district court’s grant of summary judgment
    to Mercy Housing on Green’s claims of race- and disability-
    based discrimination in violation of the Fair Housing Act,
    42 U.S.C. § 3604 et seq. We address the summary judgment
    appeal and related discovery motions in a separate,
    concurrently-filed memorandum disposition. As we remand
    the case in the accompanying memorandum disposition, we
    do not pass judgment on the merits of the district court’s
    ultimate conclusion as to whether to tax costs to Mercy
    Housing in this case. We write now only to clarify the
    circumstances under which a district court may award fees
    and costs to a prevailing defendant under the Fair Housing
    Act (FHA).
    I.
    In November 2018, Rodney Green, Sr., was evicted from
    his home in East Leland Court Apartments, in Pittsburg,
    California. Two months before his eviction, Green, who is
    Black and mobility impaired, filed suit in federal court
    alleging that Mercy Housing had discriminated against him
    on the basis of race and disability. Specifically, Green
    asserted that Mercy Housing violated the Fair Housing Act,
    California Fair Employment and Housing Act, California
    Gov’t Code § 12955 et seq., and related statutes by refusing
    to provide him with reasonable accommodations for his
    4                GREEN V. MERCY HOUSING
    disability, and that Mercy Housing was motivated by racial
    animus when it served him with a sixty-day notice to quit in
    December of 2017. Mercy Housing moved for summary
    judgment. After the district court granted summary
    judgment to Mercy Housing on each of Green’s claims, and
    over Green’s timely objections, the court clerk entered a
    taxation of Mercy Housing’s costs amounting $5,962.11.
    Citing Christiansburg Garment Co. v. EEOC, 
    434 U.S. 412
    (1978), Green argues that the district court abused its
    discretion in taxing costs to Mercy Housing without first
    determining that Green’s claim was “frivolous,
    unreasonable, or groundless,”
    id. at 422.
    This circuit has not
    previously addressed whether the Christiansburg standard
    applies to the Fair Housing Act. We now hold that it does.
    II.
    Under Fed. R. Civ. P. 54(d)(1), costs are allowed to the
    prevailing party as a matter of course “[u]nless a federal
    statute, these rules, or a court order provides otherwise.”
    “When the federal statute forming the basis for the action has
    an express provision governing costs . . . that provision
    controls.” Brown v. Lucky Stores, Inc., 
    246 F.3d 1182
    , 1190
    (9th Cir. 2001) (citing Fed. R. Civ. P. 54(d)(1)). Under the
    FHA’s fee-shifting provision, a court “in its discretion, may
    allow the prevailing party . . . a reasonable attorney’s fee and
    costs.” 42 U.S.C. § 3613(c)(2).
    In Christiansburg, the Supreme Court held that, under
    the fee-shifting provision of Title VII of the Civil Rights Act,
    42 U.S.C. § 2000e-5(k), attorney’s fees should be awarded
    to a prevailing defendant only if the plaintiff’s claim was
    “frivolous, unreasonable, or without 
    foundation.” 434 U.S. at 421
    ; see Summers v. A. Teichert & Son, Inc., 
    127 F.3d 1150
    , 1154 (9th Cir. 1997).              Summers construed
    GREEN V. MERCY HOUSING                        5
    Christiansburg as instructing that “attorney’s fees should be
    granted to a defendant in a civil rights action only ‘upon a
    finding that the plaintiff’s action’” met the Christiansburg
    
    standard. 127 F.3d at 1154
    (quoting 
    Christiansburg, 434 U.S. at 421
    ). Applying that standard, Summers held that
    a grant of attorney’s fees to a prevailing defendant in an
    action brought under the Americans with Disabilities Act
    (ADA), 42 U.S.C. § 12101 et seq., would be improper unless
    a plaintiff’s underlying claim was “frivolous, unreasonable,
    or without 
    foundation,” 127 F.3d at 1154
    (quoting
    
    Christiansburg, 434 U.S. at 421
    ).
    We have since held that Christiansburg applies to the
    award of both fees and costs to a prevailing defendant under
    the ADA. See 
    Brown, 246 F.3d at 1190
    . The ADA’s fee-
    shifting provision states that a court “in its discretion, may
    allow the prevailing party . . . a reasonable attorney’s fee,
    including litigation expenses, and costs.” 42 U.S.C.
    § 12205. In Brown, we held that the ADA’s statutory text
    “makes fees and costs parallel,” and that the Christiansburg
    standard therefore applies equally to 
    both. 246 F.3d at 1190
    .
    We now apply this same logic to the FHA. The Act’s
    fee-shifting provision states that “the court, in its discretion,
    may allow the prevailing party . . . a reasonable attorney’s
    fee and costs.” 42 U.S.C. § 3613(c)(2). “[F]ee-shifting
    statutes’ similar language is a strong indication that they are
    to be interpreted alike.” Silver Sage Partners, Ltd. v. City of
    Desert Hot Springs, 
    251 F.3d 814
    , 826 n.15 (9th Cir. 2001).
    And the text of the FHA provision is nearly identical to that
    of the fee-shifting provision of the ADA. The sole
    distinction is that the ADA—but not the FHA—explicitly
    identifies litigation expenses as a subset of awardable
    attorney’s fees. Compare 42 U.S.C. § 3613(c)(2) with
    42 U.S.C. § 12205. Because the FHA, like the ADA, treats
    6                GREEN V. MERCY HOUSING
    costs as parallel to, rather than a subset of, attorney’s fees,
    we hold that the Christiansburg standard applies to the
    award of both attorney’s fees and costs under the FHA.
    Mercy Housing argues that the FHA and ADA fee-
    shifting provisions are distinguishable from one another
    because the ADA “includes costs as a potential part of a fee
    award whereas the FHA keeps the two categories—costs and
    attorney’s fees—distinct.” This construction of the ADA is
    foreclosed by Brown, which explicitly held that the ADA
    treats the two categories—fees and costs—as 
    parallel. 246 F.3d at 1190
    . The placement of the commas in the ADA
    fees provision confirms that understanding, by setting off
    “litigation expenses” as a subset of fees, and then separately
    adding “and costs.” 42 U.S.C. § 12205.
    Our holding is consistent with the Supreme Court’s
    reasoning in Christiansburg itself. In holding that plaintiff
    in a Title VII action “should not be assessed his opponent’s
    attorney’s fees unless a court finds that his claim was
    frivolous, unreasonable, or groundless, or that the plaintiff
    continued to litigate after it clearly became so,” the Court
    reasoned that assessing fees against non-prevailing plaintiffs
    “would undercut the efforts of Congress to promote the
    vigorous enforcement” of civil rights 
    actions. 434 U.S. at 422
    . Those efforts are not served when “the chilling effect
    upon civil rights plaintiffs would be disproportionate to any
    protection defendants might receive against the prosecution
    of meritless claims.” Mitchell v. Office of Los Angeles Cnty.
    Superintendent of Schs., 
    805 F.2d 844
    , 848 (9th Cir. 1986).
    As this case illustrates, the danger of chilling civil rights
    enforcement identified in Christiansburg and Mitchell—
    both Title VII cases—is equally present in the Fair Housing
    context. Here, the plaintiff, Rodney Green, was taxed costs
    amounting to nearly $6,000 following the grant of summary
    GREEN V. MERCY HOUSING                       7
    judgment to his former landlord. Green, who maintains that
    he was subjected to racial harassment and disability-based
    discrimination by Mercy Housing, was ultimately evicted
    from his East Leland Court home for nonpayment of rent.
    When he filed this suit, in August of 2018, he owed Mercy
    Housing $3,417.00. We do not now pass judgment on the
    merits of Green’s underlying action. But it does not require
    much imagination to see how a similarly situated plaintiff,
    already struggling to cover his expenses, might choose to
    forego the risk of incurring costs equal to several months’
    worth of rent to pursue even the strongest of claims against
    a discriminatory landlord.
    We therefore hold that a plaintiff bringing suit under the
    Fair Housing Act should not be assessed fees or costs unless
    the court determines that his claim is “frivolous,
    unreasonable, or groundless.” 
    Christiansburg, 434 U.S. at 422
    . In so holding, we join the First, Second, and Fourth,
    and Fifth Circuits, all of which have applied the
    Christiansburg standard in the Fair Housing context. See
    Casa Marie Hogar Geriatrico, Inc. v. Rivera-Santos,
    
    38 F.3d 615
    , 618 (1st Cir. 1994); Taylor v. Harbour Pointe
    Homeowners Ass’n, 
    690 F.3d 44
    , 50 (2d Cir. 2012); Bryant
    Woods Inn, Inc. v. Howard County, 
    124 F.3d 597
    , 606 (4th
    Cir. 1997); Providence Behav. Health v. Grant Rd. Pub. Util.
    Dist., 
    902 F.3d 448
    , 460 (5th Cir. 2018).
    There is no indication in the record that the district court
    applied the Christiansburg standard when awarding costs.
    Moreover, as we reverse the grant of summary judgment in
    part in the accompanying memorandum disposition, it is
    apparent that it cannot be said at this juncture that Green’s
    claims were overall “frivolous, unreasonable, or
    groundless.” 
    Christiansburg, 434 U.S. at 422
    . We therefore
    vacate the costs award. Costs should be awarded at the
    8              GREEN V. MERCY HOUSING
    conclusion of the litigation, applying the Christiansburg
    standard should Mercy Housing ultimately prevail.
    VACATED and REMANDED.