Not So Fast! Think Twice Before Denying An Assistance Animal Request Based On Breed

Landlords and property managers often wonder whether they can deny a resident’s fair housing accommodation request for an assistance animal because the animal is on a “restricted breeds” list.  The short answer is “no.”  Or, perhaps more accurately, “probably not.”

The federal Fair Housing Act, 42 U.S.C. §§ 3601 et seq., requires that properties make reasonable accommodations in rules, policies, practices, or services when those accommodations are necessary to afford people with disabilities the equal opportunity to use and enjoy an apartment community.  Consequently, a property with a “no pets” policy must make an exception to that policy and grant a reasonable accommodation request to allow an assistance animal at the property when: 1) the resident making the request has a disability within the meaning of the Fair Housing Act; and 2) the resident making the request has a disability-related need for the assistance animal.

But wait, you say!  What if a resident is requesting an emotional support pit bull, and my community has a restricted breeds policy that prohibits dangerous breeds, such as pit bulls?  May the request be denied as “unreasonable”?  Put simply, probably not.  HUD (the U.S. Department of Housing and Urban Development, the agency charged with enforcing the Fair Housing Act) has made clear that “[b]reed, size, and weight limitations may not be applied to an assistance animal.”

But what about the threat that a dangerous breed, such as a pit bull, might pose?  According to HUD, any determination that an assistance animal poses a direct threat to the safety of the community (or would cause substantial physical damage to property) must be based on an individualized assessment of the specific animal at issue.  In other words, housing providers are not allowed to deny an assistance animal request simply because they believe that particular breeds—such as pit bulls—are dangerous.  Instead, the denial must be based on objective evidence about the specific animal’s actual conduct.  Therefore, consider requiring a certification stating that the animal does not have any aggressive, dangerous, or vicious propensities.

Performance Bonds: 12 Defenses to a Claim Against the Surety

When a surety receives a claim under a performance bond, and assuming the claim is valid, by contract law it can lessen or eliminate its exposure by asserting any of the defenses that are available to its principal. Those defenses include:

  1. The obligee’s (owner’s) failure to provide plans or specifications that are free from defects.
  2. The obligee’s (owner’s) failure to act.  Unreasonable delays by the obligee, as well as the obligee’s failure to act, may be a breach of the construction contract, which relieves the principal and, therefore, the surety from liability.
  3. Impossibility of performance. The work that the principal was supposed to perform was impossible to perform.
  4. Improper termination of the principal’s contract by the obligee (owner).
  5. Failure by the obligee to provide notice to the principal, and the failure to allow the principal the opportunity to remedy any incomplete or inadequate work.
  6. Set-offs or counterclaims available to the principal against the obligee (owner).
  7. Improper notice of default under the terms of the bond.
  8. Material alteration of the underlying contract.
  9. Overpayment by the obligee (owner).
  10. Termination of the contract for convenience. Since no default occurred, the surety’s obligation under the bond is not triggered.
  11. Failure to mitigate damages. Many times, when the obligee (owner) takes over completion of the project without giving the surety the opportunity to complete the project, that strips the surety of the opportunity to minimize its liability under the performance bond
  12. Statute of limitations. The claim is too old or was not brought in time based on the deadlines set out in the laws.

Performance Bonds: 3 Steps & 5 Options after the Surety Receives a Claim

What should a surety do once it receives a claim because a G.C. has defaulted under a construction contract that requires a performance bond? What are the surety’s obligations under the bond? Continue reading “Performance Bonds: 3 Steps & 5 Options after the Surety Receives a Claim”

3 Must-Haves When Hiring a Construction Lawyer

Hiring a construction lawyer is much like hiring a contractor: you need to hire the right one. If you hire the wrong lawyer, you may not recover what you are entitled to recover. Unlike a personal injury case, or a contract dispute, if you have a construction issue, you need a specialist lawyer. You need a construction lawyer. In addition, you need a specialist lawyer with particular talents.

Continue reading “3 Must-Haves When Hiring a Construction Lawyer”

Performance Bonds: What are They?

Many construction contracts – especially large ones – require the general contractor to obtain a performance bond. A performance bond assures the obligee (the owner) that it will be protected if the principal (the G.C.) fails to perform the bonded contract. The amount of protection can be as much as the “penal sum” of the bond, which is the maximum amount set forth in the bond that the surety will have to pay if the principal defaults. Typically, the penal sum of the bond is the same as the amount of the contract between the G.G. and owner.

So a performance bond is NOT an insurance policy. With insurance, the (A) policyholder pays premiums to the (B) insurance company, which will pay the policyholder if there is claim covered by the policy. It is a two party arrangement. However, with a performance bond, the (A) G.C. (principal) pays a one-time premium to the (B) surety, which will pay for certain work if there is default by the GC, thereby protecting the (C) obligee (owner). This is a three party arrangement.

The surety’s liability under the performance bond may arise in two ways. First (and most often), the owner declares that the principal is in default under the terms of the construction contract. Second, the principal can declare itself in default of the contract. (More on this second point in another post.)

Quite often, owners incorrectly believe that once a contractor defaults, all the owner must do is notify the surety, and the surety will then complete the project. However, the performance bond does not require the surety to ensure that the project is completed. Instead, the performance bond only requires that the penal sum of the bond be made available to pay the cost to complete that portion of the project the cost of which exceeds the remaining contract balance being held by the owner. For example, on a $1,000,000 project, with a performance bond for $1,000,000, if the G.C. defaults after the owner has paid it $700,000, and the cost to complete the project is $450,000, the surety is only responsible for paying $150,000.