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The U.S. Court of Appeals Second Circuit has affirmed a precedent-setting $2.2 million appellate decision against the Town of Cromwell, Connecticut, for engaging in a discriminatory campaign to push a group home for men with mental health disabilities out of town. 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 in 2015. Responding to the discriminatory opposition of neighbors, Cromwell officials waged a campaign that resulted in the closure of the home in August 2015.
The trial court judge denied the town’s motion for summary judgment in December 2019 and in October 2021 a jury found the town liable for violating the Fair Housing Act and awarded $181,000 in compensatory damages and $5 million in punitive damages. The district court rejected Cromwell’s post-trial motions, holding that Gilead had established causation, that the town was vicariously liable for the actions of its officials and that the punitive damages was appropriate. On August 12, 2024, the Second Circuit held that the FHA unambiguously allows private plaintiffs to seek punitive damages against any defendant, including a municipality. This sends a clear message about the costs of discrimination to municipal leaders and the constituents they represent.
The appeals court panel determined that an award of $2 million in punitive damages would be sustainable. A $2 million award in punitive damages and $181,000 in compensatory damages remains one of the largest monetary 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.
The plaintiffs were represented by the prestigious civil rights law firm of Relman Colfax. The Relman Colfax litigation team consists of Tara Ramchandani, Yiyang Wu, and Valerie Comenencia Ortiz, with paralegal assistance from Isabelle Charo and Reed Canaan.
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