I often remind my clients that when it comes to the Fair Housing Act and Americans with Disabilities Act the adage “ignorance is bliss” does not apply. Last week’s decision from the Southern District of Mississippi, U.S. v. Dawn Properties, Inc. et al 2014 WL 5775324 (S.D. Miss. Nov. 6, 2014) is a reminder that ignorance may turn corporate liability into personal liability for managers or owners, and that time may not be enough to insure safety.
The underlying business deals were common in the real estate development business. An LLC, Ridgeland Construction One LLC, was created to develop an apartment complex. Construction was finished in 2000 and the LLC was merged into a Delaware LLC of the same name. It was then sold to a new group of investors. In 2006 the property was sold and, two years later, the LLC was dissolved. No one involved suspected that there might be FHA accessibility violations although it appears no survey was ever conducted to make sure. More