JACKSONVILLE, Fla. – JWB Property Management announced Thursday it reached a settlement in a lawsuit that claimed the company’s screening algorithms discriminated against rental applicants who are Black.
The lawsuit was filed against JWB Property Management and JWB Real Estate Capital by Jacksonville Area Legal Aid (JALA) in March of 2023 on behalf of four people who applied to rent homes from the company.
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The plaintiffs claimed JWB violated the Fair Housing Act in rejecting their rental applications because of the existence of an eviction filing against them, even though they were filed in error, or in one case, filed against a different person with a similar name.
The plaintiffs alleged that the policy disproportionately affected applicants who are Black. JWB vehemently denied the allegations.
In a press release Thursday, JWB said, “In the negotiated settlement, JWB voluntarily agreed to alter its application process, and the information provided on its websites to clarify that tenants with eviction filings can apply for tenancy with JWB and all applicants will be assessed on a case-by-case, individualized basis.”
The lawsuit alleged that the algorithm of a third-party screening platform used by JWB flagged rental applicants’ eviction filings, even if they were made in error and ordered sealed by the court. The suit claimed JWB denied four plaintiffs’ housing applications because of the existence of eviction filings against them, even though they had proof they were made in error and dropped.
In court documents, JWB denied that the plaintiffs were denied housing because of the eviction filings, and argued they had “substantial, legitimate, and non-discriminatory reasons for their leasing policies.”
“As a Jacksonville-based real estate company, JWB serves thousands of tenants and our team works hard to understand each tenant’s unique situation,” said Alex Sifakis, founder of JWB. “JWB continues to be a leading provider of affordable housing options across Northeast Florida, and we are thankful for the opportunity to move forward positively to continue to serve our community.”
The suit alleged JWB’s alleged policy of denying applications based on the existence of an eviction filing disproportionately affected Black applicants, because they are more likely to be the targets of eviction filings and because most of JWB’s properties are in areas that are disproportionately Black when compared to the rest of Duval County.
In June, a federal judge denied JWB’s motion to dismiss the case, which meant it could have gone before a jury.
Court records show the plaintiffs and defendants jointly filed to dismiss the case on Monday, and the court ordered the case closed Tuesday.
No finding of race discrimination was made against JWB in the case.
“We commend JWB’s willingness to clearly set forth that tenants with eviction filings are not automatically denied housing opportunities with JWB based on these filings alone, which Plaintiffs alleged had a disparate impact based on their race,” said Suzanne Garrow, a lawyer in Jacksonville Area Legal Aid’s Fair Housing Unit who represented the plaintiffs. “The focus of any assessment of tenant worthiness when reviewing an application for tenancy should be on the current ability of the applicant to pay rent and adhere to the terms and obligations of the lease.”
News4JAX reached out to JWB and Jacksonville Area Legal Aid for information on a settlement amount, but they declined to provide details.