A federal judge has allowed a housing discrimination lawsuit against the Borough of Wanaque to proceed, ruling that a jury should decide whether town officials showed bias against Portuguese developers.
The ruling from the U.S. District Court for New Jersey cited alleged comments from a former borough administrator and claims of unequal treatment as grounds to let the Fair Housing Act claim go to trial.
The case was filed by J&S Group Inc., Wanaque Realty Corp. and Mountain Lakes Estates Inc., which say the borough blocked their efforts to build nearly 175 homes on land they have owned for years.
The developers, who are immigrants from Portugal, claim Wanaque officials made it harder for them to complete the project and refused to let them transfer development rights to another Portuguese-owned company.
The land dispute between developers and Wanaque has spanned more than two decades, beginning with development agreements signed in 2000, the court noted.
According to the opinion, issued Tuesday, the developers filed suit in federal court on October 10, 2018, after years of halted construction, legal appeals, and failed settlement talks.
The plaintiffs entered into a contract in February 2017 to sell the properties to J&J Builders for redevelopment under existing developer agreements, the ruling said.
However, the borough allegedly refused to assign those agreements to J&J Builders, whose owner is also of Portuguese descent.
That refusal, along with alleged discriminatory comments from a town official, is central to the lawsuit, which claims violations of the federal Fair Housing Act.
One of the most serious allegations comes from Jacinto Rodrigues, owner of the development companies.
Rodrigues testified that Thomas Carroll, who is the former Wanaque Borough Administrator, made comments suggesting the town did not want him or his associates involved in the development.
“We don’t want this guy to build the project, and the town doesn’t want you,” Carroll allegedly told Rodrigues, referring to the owner of J&J Builders, a prospective developer of the site. “Sell the project. Get somebody else. We are not—we don’t want you or your Portuguese friends to come and build the project in Wanaque. You’re not welcome.”
Carroll denied allegations that he made discriminatory remarks about Portuguese immigrants.
“Those who know me best, including my Portuguese goddaughter, and the myriad officials, employees and professionals with whom I have worked over three decades as a business administrator, know that I would never utter such a phrase,” Carroll said in a statement sent to NJ.com.
“For the record here and as stated in this case, I categorically deny having made that statement or anything close in kind,” Carroll added. “The fact that I need to respond to such a question, is offensive.”
The borough allegedly offered other potential buyers who were not immigrants a $1.85 million bond, but did not offer the same financial support to Rodrigues and his team, according to the ruling.
U.S. District Judge Jamel K. Semper found there is enough evidence of possible discrimination for the Fair Housing Act claim to go to trial.
Semper dismissed two other claims. He ruled that the developers’ property rights were not violated, noting they still own the land and can sell or develop it.
He also threw out a civil rights claim under a separate law, saying it applies only to racial discrimination, not national origin.
The Fair Housing Act claim will now be decided by a jury, which could determine whether Wanaque officials discriminated against the developers because of their Portuguese background.
Carrol also said that the “case has been gutted,” and “remains on life support.”
Attorneys for both the developers and the Borough of Wanaque did not immediately respond to requests for comment.
Requests for comment from Wanaque Mayor Daniel Mahler and the office of the Borough Administrator were not immediately returned.
Colleen Murphy may be reached at [email protected].
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