Freaked out, applicant says will sue

[Rachel Luoto]

Hi! First time I’ve had an applicant threaten to sue. We said we could overlook credit with good landlord references, last landlord had documented that they owe a balance from withholding rent, so we denied. Tenant disclosed this on their application, however when we had talked in person prior to submitting the app they said good references wouldn’t be a problem I know I’m legally within my rights to deny for this reason, but can they sue anyway? I live in Washington, a tenant friendly state.