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Case Name United States v. TK Properties FH-SD-0003
Docket / Court 4:09-cv-04153-KES ( D.S.D. )
State/Territory South Dakota
Case Type(s) Fair Housing/Lending/Insurance
Attorney Organization NDRN/Protection & Advocacy Organizations
U.S. Dept. of Justice Civil Rights Division
Case Summary
On October 15, 2009, the United States filed a lawsuit in the United States District Court, District of South Dakota, under the Fair Housing Act of 1988, 42 U.S.C. §§3601-3631, against the owner of a 48 unit apartment complex and its property managers. The U.S. sought injunctive, declaratory, ... read more >
On October 15, 2009, the United States filed a lawsuit in the United States District Court, District of South Dakota, under the Fair Housing Act of 1988, 42 U.S.C. §§3601-3631, against the owner of a 48 unit apartment complex and its property managers. The U.S. sought injunctive, declaratory, and monetary relief and civil penalties, alleging that the managers frequently used the word "nigger" and other slurs and slurs to refer to black tenants, threatened them with eviction without cause, filed false police reports, turned off heat, threatened assault, and retaliated when complainants took their complaint to the owners and to the Housing Commission. The Complaint alleged that the owners knew of the managers' behavior and did nothing to stop it.

On July 8, 2010, the District Court (Chief Judge Karen Schreier) entered a default judgment on liability against the property managers, and on August 17, 2010, the remaining parties reached a mediated agreement. The Court approved a three-year consent decree on December 21, 2010. It contained general prohibitions against racial discrimination, prohibited the owners from ever employing the managers again, and required:

  • adoption of a non-discrimination policy, to be posted at every property in which defendants had any financial interest
  • posting of the Equal Housing Opportunity logo in all advertising and at all properties
  • training of all agents and employees in the requirements of the Fair Housing Act,
  • record keeping and reporting.

The Defendants also agreed to pay $26,000 in compensatory damages to the complainants and $4,000 in civil penalties to the United States.

On March 09, 2011, the Court ordered the defaulting property managers each to pay $15,000 in civil penalties to the United States Treasury, and prohibited them for three year from operating, consulting, managing, staffing, participating in, working in (whether paid or unpaid), or otherwise having any involvement in the management, rental, or maintenance of any dwelling, as defined by the Fair Housing Act, 42 U.S.C. §802(b). The case was then closed.

Asma Husain - 02/06/2016


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Issues and Causes of Action
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Issues
Content of Injunction
Comply with advertising/recruiting requirements
Develop anti-discrimination policy
Discrimination Prohibition
Monitoring
Other requirements regarding hiring, promotion, retention
Provide antidiscrimination training
Recordkeeping
Reporting
Defendant-type
Multi-family housing provider
Discrimination-area
Housing Sales/Rental
Discrimination-basis
Race discrimination
General
Housing
Plaintiff Type
U.S. Dept of Justice plaintiff
Race
Black
Causes of Action Fair Housing Act/Fair Housing Amendments Act (FHAA), 42 U.S.C. §§ 3601 et seq.
Defendant(s) TK Properties,
Plaintiff Description U.S., on behalf of African-American tenant complainants
Indexed Lawyer Organizations NDRN/Protection & Advocacy Organizations
U.S. Dept. of Justice Civil Rights Division
Class action status sought No
Class action status granted No
Prevailing Party Plaintiff
Public Int. Lawyer Yes
Nature of Relief Damages
Injunction / Injunctive-like Settlement

Source of Relief Litigation
Settlement
Form of Settlement Court Approved Settlement or Consent Decree
Order Duration 2011 - 2014
Case Closing Year 2011
Case Ongoing Yes
Additional Resources
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Case Studies Insurer Must Pay $100.5 Million in Redlining Case
The New York Times
Written: Oct. 27, 1998
By: Joseph B. Treaster
[ Detail ] [ External Link ]

  Nationwide Settles Virginia Redlining Suit
Property Casualty 360
Written: May. 06, 2000
By: Amanda Levin
[ Detail ] [ External Link ]

  The Origins of Fair Lending Litigation
Written: Dec. 04, 2008
By: Andrew Nash (Washington University in St. Louis)
[ Detail ] [ PDF ] [ External Link ]

Docket(s)
4:09-cv-04153-KES (D.S.D.) 03/09/2011
FH-SD-0003-9001 PDF | Detail
PACER [Public Access to Court Electronic Records]
General Documents
Complaint 10/15/2009
FH-SD-0003-0001 PDF | Detail
Document Source: U.S. Department of Justice, Civil Rights Division, Special Litigation Section
Partial Consent Decree 12/21/2010
FH-SD-0003-0002 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Order Awarding Civil Penalties and Injunctive Relief Against Defendants Anderson and Wagner 03/09/2011 (D.S.D.)
FH-SD-0003-0003 PDF | Detail
Document Source: PACER [Public Access to Court Electronic Records]
Judges Schreier, Karen E. (D.S.D.)
FH-SD-0003-0002 | FH-SD-0003-0003 | FH-SD-0003-9001
Simko, John E. (D.S.D.) [Magistrate]
FH-SD-0003-9001
Monitors/Masters None on record
Plaintiff's Lawyers Bengford, Stephanie (South Dakota)
FH-SD-0003-0001 | FH-SD-0003-0002 | FH-SD-0003-9001
Borshansky, Neta (District of Columbia)
FH-SD-0003-0002 | FH-SD-0003-9001
Holmes, Dennis R (South Dakota)
FH-SD-0003-0001
Holmgren, Jan (South Dakota)
FH-SD-0003-0002
Lapertosa, Max (Pennsylvania)
FH-SD-0003-0001 | FH-SD-0003-0002 | FH-SD-0003-9001
Moran, Timothy (District of Columbia)
FH-SD-0003-0001 | FH-SD-0003-0002 | FH-SD-0003-9001
Perez, Thomas E. (District of Columbia)
FH-SD-0003-0001 | FH-SD-0003-9001
Rosenbaum, Steven H. (District of Columbia)
FH-SD-0003-0001 | FH-SD-0003-0002 | FH-SD-0003-9001
Defendant's Lawyers Fritz, Daniel R (South Dakota)
FH-SD-0003-0002 | FH-SD-0003-9001
Stoeser, Erika L (South Dakota)
FH-SD-0003-0002 | FH-SD-0003-9001
Other Lawyers None on record

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