Yellowstone Women’s First Step House Inc. et al. v. City of Costa Mesa

Central District

U.S. District Judge James V. Selna

Defense Lawyers: Jennifer L. Keller, Chase A. Scolnick, Michael A. Schachter, Nahal Kazemi, Anand R. Sambhwani, Keller/Anderle LLP

Plaintiffs' Lawyers: Christopher A. Brancart, Elizabeth N. Brancart, Brancart & Brancart; Steven G. Polin, Law Offices of Steven G. Polin; Isaac R. Zfaty, Zfaty Burns

Costa Mesa has for years been ground zero for Orange County's struggle to address a growing number of residential homes that serve recovering drug addicts, and a lawsuit from seasoned housing discrimination attorneys tested the city's political will in a high-stakes jury trial won in December by Jennifer L. Keller and Chase A. Scolnick of Keller/Anderle LLP.

The city council hired the elite boutique in early 2018, and Keller's team put together a thorough yet simple case that focused on the fact that federal housing discrimination laws regarding addiction exist to protect addicts, not sober-living home operators.

Nahal Kazemi

"I think that really resonated with the jurors," Keller said. "Our focus was really showing and I think pushing the sober-living home people to show how ridiculous their positions were."

At issue was a city ordinance that implemented permits for sober-living homes, prohibited them from being within 650 feet of one another and restricted the number of residents to six.

Under the federal Fair Housing Act, people with drug addictions are a protected disabled class, and no restrictions can be placed on their housing, so plaintiffs' attorneys Christopher A. Brancart and Steven G. Polin sued in 2014 on behalf of sober-living homes.

Isaac R. Zfaty of Zfaty Burns joined them as a trial manager, and together they tried to persuade jurors that the city acted with discriminatory intent when it enacted the ordinance. Keller said the jury instructions were not in their favor. If jurors simply believed the city implemented the ordinance in a discriminatory way, it would lose.

"The law is very difficult for the cities," Keller said.

Michael A. Schachter

Keller said Costa Mesa Mayor Katrina Foley, who is an attorney, "was a little shocked when she heard the instructions being read." Foley said they sounded "like a hard hurdle to overcome, and I said, 'Well, I think we've made it,'" Keller said. "I knew the jurors were in our corner."

After four weeks of testimony before U.S. District Judge James V. Selna, the jury of five men and three women deliberated about five hours before concluding Costa Mesa didn't discriminate against the plaintiffs, Yellowstone Womens First Step House, Inc., California Womens Recovery Inc. and Sober Living Network, Inc.

The plaintiffs attorneys said they were hindered in instructions because of a previous ruling that the ordinance wasn't discriminatory.

"We're obviously disappointed. We think there are several areas that are very ripe for appeal," Polin said. Yellowstone Women's First Step House Inc. et. al. v. City of Costa Mesa, 14-CV01852 (C.D. Cal., filed Nov. 20, 2014).

Keller said the plaintiffs' first witness, former assistant city manager Rick Francis, "was just a marvelous witness for us" because of his diligence as a policy analyst and longtime service as a public official.

Anand R. Sambhwani

She also referenced cross-examination by Scolnick of the Sober Living Network's executive director, Dave Sheridan, in which Scolnick asked Sheridan if he believed the city should allow a sober-living home to be operated by someone who "was just released from prison for, say, burning down a sober-living home."

"I'm not sure. I don't know how I'd feel about that," Sheridan answered.

Keller and Scolnick also called as witnesses neighbors of sober-living homes who had demanded action from City Hall and believed the ordinance improved neighborhood conditions.

Polin said the city "was able to convince the jury that they were justified what they were doing because of the horror stories that were being circulated about sober-living homes." He said the plaintiffs will file a notice of appeal as soon as the final judgment is entered.

-- Meghann Cuniff