Freedom’s Path at Dayton v. Dayton Metropolitan Housing Authority

Freedom’s Path at Dayton (Freedom’s Path) (plaintiff) developed and owned affordable housing for veterans. The Dayton Metropolitan Housing Authority (DMHA) (defendant) agreed to partner with Freedom’s Path to receive federal funding under the Veterans Affairs Supportive Housing (VASH) program. VASH was operated jointly by the US Department of Veterans Affairs (VA) and the US Department of Housing and Urban Development (HUD). Because Freedom’s Path was a private entity, it was not eligible for VASH funding without DMHA’s partnership. Ultimately, DMHA did not follow through with the partnership, and Freedom’s Path sued DMHA. Freedom’s Path sought to depose several third-party witnesses. DMHA filed a motion for a protective order barring the depositions of: Alphonzio Prude, DMHA’s former interim CEO; De Carol Smith, a project manager at the VA, who had corresponded with DMHA regarding its response to Freedom’s Path; and Phyllis Smelkinson and Raymond Keyser, employees of HUD. Smelkinson had consulted with Smith about Freedom’s Path’s eligibility for VASH. Keyser had consulted with Freedom’s Path counsel and DMHA’s CEO, Ms. Heapy, on ways that Freedom’s Path could become eligible for VASH. Also, Freedom’s Path filed a motion to compel testimony of Heapy. During Heapy’s deposition, DMHA’s counsel had interjected during several questions, instructing Heapy to answer only if she could, asking for clarification of questions, and at times instructing Heapy not to answer.