Gilead Community Services v. Town of Cromwell

Combating Disability Discrimination by Local Governments

In August 2024, Relman Colfax obtained a precedent-setting $2.2 million appellate decision in a case involving the Town of Cromwell’s discrimination against a group home for men with mental health disabilities. Gilead Community Services, a non-profit serving people with mental health disabilities in Connecticut since 1968, sought to open a six-person home in Cromwell, Connecticut. Responding to the discriminatory opposition of neighbors, Cromwell waged a campaign that resulted in the closure of the home in August 2015.

The decision from the U.S. Court of Appeals for the Second Circuit sends a clear message to local governments around the country that discrimination against group homes for people with disabilities violates federal law and will not be tolerated. The firm is committed to fighting such discrimination and ensuring the opportunity for people experiencing mental health disabilities to live in the community. This work is critical given the U.S. Surgeon General’s findings that as many as one in five people in the United States will experience mental health disabilities during their lifetimes.

Background

Relman Colfax and the Connecticut Fair Housing Center filed suit on April 17, 2017 on behalf of the Center and Gilead Community Services, against the Town of Cromwell, Connecticut. The complaint alleged that Cromwell and three of its high-ranking officials violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by engaging in an illegal and concerted campaign to force Gilead to close the group home.

In early 2015, Gilead purchased and renovated a single-family property in Cromwell to provide housing and supportive services for six men with mental health diagnoses. Under Connecticut law, this living arrangement is a by-right use in residential neighborhoods and should not be subjected to any zoning or other limitation not applicable to other single-family homes.

Notwithstanding the clear provisions of state law, Cromwell's Mayor and Town Manager rallied community opposition to keep the Gilead residence from opening in the first place. Thereafter, Cromwell officials misused their authority by threatening Gilead's funding from the State of Connecticut, issuing a cease and desist order, and wrongfully denying Gilead a local property tax exemption available to non-profit entities.

The Town of Cromwell additionally exhibited indifference toward the health and safety of the residents when its police officers leaked one of the resident’s sensitive health information to the media and when the police failed to fully investigate an incident of vandalism at the home.

As a consequence of these discriminatory actions, Gilead was forced to close the residence, sustained substantial monetary losses, and prospective residents who were ready for community living were forced to return to institutional settings.

Key Case Developments

Defendants moved for summary judgment on all counts. On December 20, 2019, the district court denied Defendants' motion, holding that all of Plaintiffs’ claims should proceed to trial. In denying the motion, U.S. District Judge Victor Bolden found that there was substantial evidence to support a finding that the Town’s conduct violated the Fair Housing Act and other federal civil rights statutes by making housing unavailable, interfering with Gilead’s right to operate the home, retaliating against Gilead for asserting its fair housing rights, and stating the Town’s preference that people with mental illnesses not live in Cromwell.

A trial was held in October of 2021. After seven days, and following the testimony of 17 witnesses, a federal jury returned its verdict, awarding nearly $5.2 million in compensatory and punitive damages against the Town of Cromwell for its discriminatory actions. The jury found for Gilead on all counts, determining that Cromwell officials’ prolonged and vociferous campaign to close the group home violated the FHA and ADA. The jury found that Cromwell’s discriminatory actions merited one of the largest monetary punitive damages awards ever achieved in such a case: $5 million, in addition to $181,000 in compensatory damages.

On May 27, 2022, U.S. District Court Judge Victor Bolden denied the post-trial motions filed by the Town of Cromwell for judgment as a matter of law, or, in the alternative, for a new trial. The Court’s order upholds the jury’s verdict in its entirety. Judge Bolden also granted Plaintiffs’ motion to amend the Court’s judgment to include a nominal damages award of $1 to the Connecticut Fair Housing Center (CFHC). As a result of this order, both Gilead Community Services and the Connecticut Fair Housing Center now have an entry of judgment in their favor.

On August 12, 2024, the Second Circuit rejected Cromwell's arguments regarding the causation standard, vicarious liability, and the availability of punitive damages under the FHA and affirmed the district court’s ruling on these issues.

In reviewing the constitutionality of the jury’s punitive damages award, the Second Circuit emphasized that the highly reprehensible conduct by the Town of Cromwell supports a significant award of punitive damages. The panel determined that an award of $2 million in punitive damages would be sustainable, making this ruling precedent-setting. A $2 million award in punitive damages and $181,000 in compensatory damages remains one of the largest punitive damages awards ever achieved in such a case. The punitive damages ratio of 11:1 in this case is a reflection of the severity of the discrimination endured by Gilead and its clients, and serves as an important reminder to municipalities throughout the country to stand up for the rights of all their residents, including those with disabilities.

Impact

The Firm believes that local government actors who wield their power in violation of their civil rights obligations can and should be held accountable, and that our litigation in this matter provides a road map for other advocates seeking to hold local governments accountable.

The Case Team

The Relman Colfax litigation team consists of Tara Ramchandani, Yiyang Wu, and Valerie Comenencia Ortiz. Greg Kirschner of the Connecticut Fair Housing Center is co-counsel in the matter.