In Morris v. West Hayden Estates First Addition Homeowners Association, Inc., (9th Cir., June 17, 2024), the U.S. 9th Circuit Court of Appeals partially affirmed an Idaho federal district court's rejection of a jury's verdict against a Homeowner's Association charged by plaintiff with violating provisions of the Fair Housing Act. At issue was efforts by the Homeowners Association to prevent plaintiffs from purchasing a home in the subdivision because of plaintiffs' plans to put on at their home a multi-day Christmas festival with thousands of lights, a live nativity scene, costumed characters and a real camel, all in order to raise funds for charity. A letter from the Homeowners Association to plaintiffs included a sentence reading: "And finally, I am somewhat hesitant in bringing up the fact that some of our residents are non-Christians or of another faith and I don’t even want to think of the problems that could bring up."
Judge Berzon's opinion, reflecting the conclusion of a majority of the 3-judge panel, held that there was insufficient evidence to support the jury's verdict of religious discrimination in violation of §3604(b) the Fair Housing Act, saying in part:
... [T]o support a disparate treatment claim, plaintiffs must be able to point to some concrete adverse impact suffered as a result of the defendants’ behavior. The Morrises have pointed to no such harm.
Similarly she held that the evidence did not support claims of a violation of §3604(c), saying in part:
Viewing the letter as a whole, an ordinary reader would understand the Board to have indicated a preference, limitation, or discrimination based not on whether the prospective homeowners were themselves religious or nonreligious, Christian or atheist, but on whether the event they proposed to host once a year would disturb the neighbors, both by its size and raucousness and by offending non-Christians.
However, the court upheld the jury's conclusion that the Homeowners Association violated §3617 of the Act, saying in part:
The Board’s letter to the Morrises could reasonably be read to indicate that the program’s association with the Christian faith was one consideration in the Board’s opposition to the show....
These statements sufficiently support an inference by the jury that an anti-Christian purpose was at least a motivating factor in the Board’s conduct regarding the proposed Christmas event, independent of any other concerns also underlying that conduct. And given this permissible inference, there was sufficient evidence for the jury rationally to conclude that the Board interfered with the Morrises’ exercise of their right to purchase and enjoy their home at least in part because of their religious expression, and therefore violated § 3617 of the FHA.
Judge Berzon went on to conclude that on the facts of this case, the Homeowners Association was not liable for harassing conduct of subdivision residents.
Judge Tashima dissented in part, contending that the district court correctly granted judgment for the Homeowners Association on all claims because the Homeowners Association's concern was with the size and scale of the Morrises' holiday events, not with the Morrises' religion.
Judge Collins dissented in part saying that he would have affirmed the jury's finding of liability on all the Morrises' claims.
