Monday, December 16, 2024

Punitives are available against municipalities under the City Human Rights Law

Lawyers who sue and defend municipalities know that you cannot recover punitive damages against towns, villages, counties and cities. That's the rule under federal law. What about the New York City Human Rights Law? A federal judge a few weeks ago said these damages may be recoverable.

The case is Jordan v. City of New York, 23 cv 4962 (DLC), 2024 WL 4872186 (S.D.N.Y. Nov. 22, 2024," a case alleging disability discrimination under federal, state, and city law. In pre-trial motion practice, the City argued that punitives are not available under of these statutes, including the City law. 

Judge Cote noted that "There is a common-law presumption against the availability of punitive damages from municipalities, and thus '[t]he general rule ... is that no punitive damages are allowed
unless expressly authorized by statute.'” The case for that is City of Newport v. Fact Concerts, 453 U.S. 247 (1981). While the State HRL states that punitive damages are available only in cases of employment discrimination and housing discrimination, the City law contains language stating:

Except as otherwise provided by law, any person claiming to be a person aggrieved by an unlawful discriminatory practice as defined in chapter 1 of this title ... shall have a cause of action in any court of competent jurisdiction for damages, including punitive damages.
That language is found in N.Y.C. Admin. Code section 8-502(a). Based on this language, the NYCHRL rebuts the common-law presumption against the availability of punitive damages from municipalities.

This ruling might make for an interesting appeal to the Second Circuit, but there would have to be a trial first before any appeal is ripe for the Court of Appeals. But that issue is now moot, as the case went to trial on December 2, 2024. The jury was asked to determine whether the City retaliated against plaintiff in violation of the Americans with Disabilities Act and the City law. The jury returned a verdict for the City.




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