A federal court has dismissed a racial discrimination lawsuit filed by three Black real estate investors in Houston who claimed they were denied the opportunity to purchase condominiums in a new community development that catered to Asians.
The civil action against the RE/MAX franchise network and others was thrown out on Feb. 27 after U.S. District Judge David Hittner ruled the case lacked the proper legal standing under the federal Fair Housing Act.
Filed in September 2022 by James Ra-Amari and his wife, Misty Ra-Amari, and Misty’s sister Rosemary Afful, the lawsuit obtained by Atlanta Black Star alleged that Houston-area realtor Josie Lin and associate property managers, including RE/MAX, conspired to prevent them from buying three new units at Grand West Condominiums in the suburb of Katy.
Hittner dismissed the lawsuit with prejudice, or “without the option to refile,” suggesting the plaintiffs cannot appeal the ruling to a higher court based solely on the merits of the case.
The lawsuit had sought undisclosed punitive damages for emotional distress while claiming violations of fair housing laws, which prohibit discrimination in the “sale or rental of a dwelling.”
Hittner’s ruling focused more on whether fair housing laws had been violated rather than on whether the Black investors had faced outright racism when they tried to buy property in an area of Houston that was being marketed specifically to Asian residents.
The lawsuit said the complex’s promotional materials hailed it as a “new option for Chinese and Asian communities.” The marketing brochure also touted the property as “a new option for a safe and simple Asian life” and plugged the trendy Asian shopping district “within walking distance.”
Undeterred, the Black buyers still called Lin for a meeting, in which they were allegedly told that “all the current owners were personal friends and knew each other,” which suggested to the trio they were not welcome.
In the lawsuit, they argued that the narrow focus of the marketing materials, combined with Lin’s comments, “established discrimination.”
The action named Lin’s company, UMRE; Grand West Condominiums; Grand West Residential Condominium Association, Inc.; United Property Management; and two real estate brokerages, including RE/MAX and EXP Reality, who filed a joint motion to dismiss the case.
They argued that because the plaintiffs, as investors, never made a cash offer and did not intend to live in the units, they did not meet the criteria for discrimination in the “sale or rental of a dwelling” under the Fair Housing Act.
In his ruling, Judge Hittner decided that the plaintiffs lacked legal grounds to file the suit because they had failed to establish a business relationship with Lin in the first place and that Lin was never an agent “acting on their behalf.”
This lack of connection also extended to the other defendants in the case, ultimately leading to the dismissal.
Attorney Justin Moore, who represented the Black investors, issued a statement following the ruling, noting that the case underscored the loopholes in establishing fair housing practices nationwide.
“Our stance is that real estate investment has historically been a pathway for many Americans to build wealth, and our clients’ endeavors align with this tradition,” Moore wrote, according to the Houston Chronicle. “Property at its essence is an investment. … Your home is an investment whether you live in it or not.”
