A federal court fight has begun over Virginia’s regulatory ‘catch-22’ facing small landlords. The case, Lucinda LC and Wheatley v. Jay Som et al., started after Virginia officials launched an enforcement investigation into Lucinda LC and June Wheatley, who manage nine apartment units on behalf of Wheatley’s elderly father’s marital trust.
Background
The state opened the probe under its source-of-funds law, which prohibits landlords from refusing tenants based on their source of income, such as federal housing vouchers. In response to the investigation, the landlords filed a lawsuit in federal court against state officials, alleging violations of the Fourth Amendment and federal law.
A federal district court initially dismissed the landlords’ case, ruling that the lawsuit was ‘unripe.’ The lower court concluded that because Virginia had not yet made a final determination or issued formal charges, it was too premature for a federal court to intervene.
Appeal
However, the Liberty Justice Center and the Manhattan Institute argue in their newly filed brief that waiting for a final state decision forces severe, immediate hardship onto small businesses. According to the court filings, the ongoing investigation itself inflicts financial and operational damage that cannot be undone later.
The legal groups argue that if a small landlord cannot sue before formal enforcement because the case is deemed ‘unripe,’ and cannot sue after enforcement begins due to federal abstention rules, they are completely locked out of protecting their federal constitutional rights in a federal forum.
‘No one should have to wait for the government to finish violating their rights before they can ask a federal court to step in,’ said Reilly Stephens, Director of Amicus Practice at the Liberty Justice Center. ‘When a state investigation imposes real costs and legal burdens on a small business, that is not hypothetical. That is exactly the kind of hardship federal courts exist to review.’
Original reporting: Tampa Free Press — read the source article.
