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Justice delayed: Former tenant in landlord sex contract case wants paused trial to resume

Claims legal games with last-minute bankruptcy filing
Posted at 5:30 PM, Oct 24, 2022
and last updated 2022-10-25 01:42:44-04

LAS VEGAS (KTNV) — A local mother is pushing back against her former landlord's attempt to delay justice in a bizarre case of sex in exchange for rent.

The plaintiff in this sex contract case involving a local property manager is asking that her federal civil trial be allowed to continue.

It's been on hold for weeks after the landlord filed bankruptcy at the last minute as the case was about to resume from a previous pause.

The plaintiff's lawyers are asking the court to lift the automatic stay imposed by the bankruptcy filing and finish trying the case.

Plaintiff Candy Torres is suing former real estate broker and property manager Allan Rothstein for violations of the federal Fair Housing Act, wrongful eviction, sexual harassment and deceptive trade practices.

In her federal lawsuit, Torres accuses Rothstein of forcing her to sign a sex contract in order to stay in the rental home he'd already allowed her to move into with her five children.

Court records say in 2018, Torres and her children were homeless and searching for a landlord who would accept a Section 8 housing voucher.

Rothstein agreed, but allegedly required Torres to pay unlawful rental fees and charges.

Court records say Rothstein breached his agreement to reduce Torres' security deposit in exchange for work she did cleaning, painting and carpeting the house.

Then, records say, "When Torres was at her most vulnerable, Rothstein demanded sex from Torres."

When she refused, he demanded she "Sign a sex contract... Or lose her housing."

"It's direct consent for sexual intercourse and or (oral sex), which is in italics. Who names the document that?" wondered Attorney Bruce Flammey, a housing law expert who we asked to analyze the case for us in August.

"And that's where I started laughing," Flammey said, "because this is a legal contract the way the actors on Gray's Anatomy are real doctors. This is literally not worth the paper it's printed on."

In court records, Torres says she signed the document, believing it to be illegal and unenforceable, and never acted on it.

"What do we make of the fact that she initialed this thing?" Darcy Spears asked.

"Nothing," Flammey said. "People sign things all the time, and the popular myth is, well, you signed it, so it's binding. There are a variety of things you can sign that are not binding. Any contract that is against the law or public policy is not binding."

The federal civil trial went on for a week in August before U.S. District Judge Andrew Gordon paused it at Rothstein's request.

Rothstein, who's approximately 80 years old, claimed he was having cognitive issues and suffering emotionally due to death threats he'd received in the wake of media reports on the trial.

Judge Gordon had reset the case for two final days of trial starting Mon. Oct. 3. but on Sunday, Oct. 2, at 10 pm, Rothstein filed bankruptcy, which automatically put everything on hold.

Court records show Rothstein was previously sanctioned and fined for misconduct by a District Court judge for delaying the trial for several months during the Discovery phase.

Records say Rothstein never paid the nearly $4700 fine that was meant to help Torres recoup some of her legal fees created by Rothstein's delay tactics.

In e-mails attached to the Motion For Relief From Automatic Stay, Rothstein's lawyer first says his client is in bankruptcy, doesn't have much money and has many debts.

But in the next sentence, he says Rothstein is looking forward to settling the case, which would likely involve a substantial payout.

A hearing on the motion is set for Nov. 23.

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