Attorney General Mayes Secures $600,000 Settlement in Disability Discrimination Case Against Olive Branch Assisted Living LLC, Terra Medical LLC, and Owner Russell Appleton

PHOENIX — Attorney General Kris Mayes today announced that the Arizona Civil Rights Division of the Attorney General's Office has successfully resolved a disability discrimination lawsuit against Olive Branch Assisted Living, LLC, Terra Medical LLC, Terra Medical of Arizona LLC, and their owner, Russell Appleton.

The lawsuit alleged that the defendants violated the Arizona Fair Housing Act through a series of discriminatory and retaliatory actions against a resident of their behavioral health facility. According to the complaint, the defendants disclosed the resident's private medical diagnosis to other residents, causing her emotional distress and humiliation, and subsequently denied her continued housing in the Defendants' behavioral health program because of that diagnosis — forcing her to either find a new facility or abandon treatment altogether.

When the resident filed a complaint with the Arizona Civil Rights Division and pursued a private lawsuit, the defendants allegedly retaliated by threatening to sue her into bankruptcy.

"No Arizonan should be threatened or humiliated for simply seeking a place to live and receive care," said Attorney General Mayes. "I will fight to guarantee that anyone who discriminates against or threatens an Arizonan faces consequences under the Arizona Fair Housing Act."

In resolving pending litigation, Defendants agreed to:

• Pay $585,000 to the aggrieved party;
• Pay $15,000 to the State of Arizona as a civil penalty;
• Submit to six years of monitoring by the Attorney General’s Office to guarantee compliance with the law;
• Create policies that prohibit disability discrimination and retaliation, if any Defendant operates a Residential Health Care Entity; and
• Train its personnel on the disability discrimination and retaliation protections under Arizona and federal law, as well as preventing stigma against people with disabilities, if any Defendant operates a Residential Health Care Entity

The resolution is part of the Division's broader civil rights enforcement efforts. In the last fiscal year, the Division investigated thousands of allegations of unlawful discrimination across the state and secured more than $2 million in remedies for discrimination victims.

Arizona law protects individuals with disabilities from unlawful discrimination in employment, housing, places of public accommodation, and voting. Those who believe they have experienced discrimination in any of these areas are encouraged to contact the Attorney General's Office or submit an intake questionnaire at www.azag.gov/complaints/civil-rights.

This matter was litigated by Senior Litigation Counsel Tarah White and Assistant Attorney General Ryan Bishop, with litigation support provided by paralegals Frankie Hensley and Cari Shehorn. The investigation was conducted by Compliance Officer Elizabeth Amarillas.

A copy of the Consent Decree is available.