Douglas Elliman is out of a Section 8 discrimination fight aimed at several of its top producers.
A federal judge last week dismissed the lawsuit against the firm and its New York City agents over alleged violations of the Fair Housing Act. The case was tossed with prejudice, which means the plaintiff, Shaniqua Newkirk, can’t reopen or revive her claims in a future lawsuit.
Newkirk, who is Black, sued Elliman and a number of its top agents — including Noble Black, Frances Katzen, Ann Cutbill Lenane and Lauren Muss — in 2023, alleging the luxury brokers either didn’t help her find housing with her Section 8 voucher or didn’t respond to her emailed requests to assist her.
“We disagree with the Court’s reasoning in dismissing the Compliant,” Newkirk’s attorney Andrew Miltenberg wrote in a statement. “We believe that there is a clear and compelling basis for the lawsuit and are considering our appellate options.”
“We are thrilled to see these predatory and baseless claims rejected by the court and that the well-earned reputations of our agents and our firm have been affirmed,” said a spokesperson for Douglas Elliman. “The dismissal of this lawsuit underscores Douglas Elliman’s zero-tolerance policy against any unlawful discrimination. We pride ourselves on our agent training programs, which include rigorous education on fair housing laws.”
The decision to dismiss the case came after Newkirk and her attorneys failed to file an amended complaint despite two deadline extensions, according to court documents. The judge initially agreed to dismiss the case in December and allowed Newkirk time to submit a revised complaint. But her attorneys ultimately agreed to the dismissal last week.
In a letter to the judge, Newkirk’s attorney Steven Siegel wrote that his research “did not find any authority to reinstate this cause of action” considering the court’s objections, including that Newkirk hadn’t proved she sustained damages as a result of the allegations. He confirmed Newkirk initiated the case after the statute of limitations had run out for her claims.
In the lawsuit, Newkirk claimed she started reaching out to brokers on a list of the city’s top agents in June 2021 to find someone to assist her in finding a new apartment with her voucher. Instead, Newkirk alleges her requests were brushed off or went unanswered.
“I only specialize in luxury real estate transactions and don’t even know what sec 8 means,” Elliman agent Madeline Hult Elghanayan told the plaintiff in an email.
Other agents named in the lawsuit included Eleonora Srugo, whose team recently starred in a Netflix’s reality show called “Selling the City.” Disgraced brokers Tal and Oren Alexander, who left Elliman to launch their own company in 2022, were also named in the complaint.
Newkirk’s complaint also accused Elliman of violating city laws mandating it “prominently and conspicuously” include a link to the Fair Housing and Anti-Discrimination notice on the homepage of its website.
“Only at the very end of the homepage in tiny font under the heading of State Disclosures is a link,” the complaint states. “Defendants are more concerned with their luxury brand than they are with following the law.”
A spokesperson for Elliman previously pushed back against the claims, calling them “predatory and baseless.” The spokesperson argued the firm had a “zero tolerance policy” for discrimination and maintained a “rigorous” training program for agents around fair housing policies.
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