119.

Sample Consent Decree—Fair Housing—Sexual Harassment

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION GWEN HARDY, CYNTHIA BRANHAM and CHARMAINE BERRY, Plaintiffs, No. 92 C 7170 v. Judge Ruben Castillo GEORGE NEDIALKOV, Defendant. UNITED STATES OF AMERICA, Plaintiff, No. 93 C 1794 v. Judge Ruben Castillo GHEORGHI NEDIALKOV (also known as GEORGE NEDIALKOV), and JAMES NEDIALKOV, Defendants. CONSENT DECREE This action was filed by the United States on March 25, 1993 against defendant to enforce the provisions of Title VIII of the Civil Rights Act of 1968 (the Fair Housing Act), as amended by the Fair Housing Act Amendments of 1988, 42 U.S.C. §§ 3601 et seq. Gwen Hardy, Cynthia Branham, and Charmaine Berry (hereinafter "the private plaintiffs") filed their complaint on October 28, 1992 under the Fair Housing Act and the Civil Rights Act of 1866, 42 U.S.C. § 1982. Defendants are engaged in the business of renting and managing real estate property they own which is located at 1241 W. Loyola, Chicago, Illinois, in the Northern District of Illinois. In its complaint, the United States alleges that Defendants engaged in a pattern or practice of sexual harassment in the rental of apartments at 1241 W. Loyola, in violation of the Fair Housing Act. The United States alleges specifically that from 1988 and continuing through the present, the defendant Gheorghi Nedialkov implemented this pattern or practice by subjecting female tenants at their 1241 W. Loyola Avenue apartment building to extensive, continuous and unwelcome sexual harassment; conditioned tenancy on the grant of sexual favors; created a hostile environment for female tenants; and retaliated against women who filed complaints of sexual harassment against him or refused to grant him sexual favors, in violation of Sections 804(a) and (b) and Section 818 of the Fair Housing Act. The United States' complaint alleges that defendant James Nedialkov knew or should have known of the discriminatory conduct of the defendant Gheorghi Nedialkov but refused to take action to cur tail the such behavior, in violation of 42 U.S.C. �(a) and (b) and �. The private plaintiffs make similar claims against Gheorghi Nedialkov in their complaint, alleging that he violated the Fair Housing Act, 42 U.S.C. � et seq. They also allege that he violated the Civil Rights Act of 1866, 42 U.S.C. �. The parties have agreed that in order to avoid protracted and costly litigation, the controversy should be resolved without further litigation. Therefore, without a trial or adjudication of any of the facts alleged by the United States and the private plaintiffs, the parties consent to the entry of this Decree. INJUNCTION It is hereby ORDERED, ADJUDGED AND DECREED that Defendants, their agents, employees, successors, and all persons in active concert or participation with any of them, are hereby permanently enjoined from: Failing to rent after the making of a bona fide offer, or refusing to negotiate for the rental of, or otherwise making unavailable or denying, any dwelling because of sex or race; Discriminating against any person in the terms, conditions or privileges of the rental of a dwelling, or in the provision of services or facilities in connection therewith, because of sex or race; Making, printing, publishing or causing to be made, printed or published any notice, statement or advertisement with respect to the rental of a dwelling that indicates any preference, limitation or discrimination based on sex or race; and Representing to any person because of sex or race that any dwelling is not available for inspection or rental when such dwelling is in fact so available. Coercing, intimidating, threatening or interfering with any person in the exercise or enjoyment of, or on account of his having exercised or enjoyed, or on account of his having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by section 803, 804 805, or 806 of the Fair Housing Act, 42 U.S.C. §� - 3606. Making any unwelcome sexual advances, making requests for sexual favors or, making requests for conduct of a sexual nature when submission to such requests is made explicitly or implicitly a term or condition of an individual's housing; or when submission to or rejection of such conduct by an individual forms the basis for any housing decision affecting the individual. Making any unwelcome sexual advances or requests for sexual favors, or conduct of a sexual nature when such conduct has the purpose or effect of substantially interfering with an individual's housing rights or creating an intimidating, hostile or offensive housing environment. Contacting any of the aggrieved persons. It is hereby ORDERED ADJUDGED AND DECREED that, except in accordance with Sections DD and EE below, the Defendants shall be permanantly enjoined from managing or entering the property located at 1241 W. Loyola, Chicago, Illinois, other than to remove personal belongings within 15 days of the entry of this decree. It is further ORDERED, ADJUDGED AND DECREED that: Defendants shall be enjoined from managing any other rental property for the length of this Decree; Tim Martalogo, a current employee of the Defendants, shall perform all management functions at 1241 West Loyola for a period of not more than forty five (45) days after the entry of this consent decree; and After expiration of that time period, the property shall be managed by an independent party with whom the Defendants have had no prior business or personal relationship. The Defendants shall serve written notice on counsel for the Plaintiffs in writing of any management company, person selected to manage the property or purchaser of the building. The Defendants shall be permitted to enter 1241 West Loyola no more than once every fifteen (15) days for the purposes of inspecting the property, showing it to prospective purchasers, or to prospective managment teams. During such visits, Defendants may only enter common areas, and may not have any contact with tenants. The Defendants shall only be present at 1241 West Loyola when accompanied by a supervisory member of the managment agent. The Defendants shall make good faith effort to sell 1241 West Loyola. The Defendants shall execute a release of any and all judgments for possession and/or damages entered against Gwendolyn Hardy within two weeks of the entry of this Order. MONETARY RELIEF It is further ORDERED that Defendants shall pay the total sum of $180,000.00 to the Department of Justice and the Lawyers Committee for Better Housing, Inc. (hereinafter "the Lawyers' Committee") as will be determined by them in their sole discretion. Portions of such sum will be distributed by the United States and the Lawyers Committee to all aggrieved persons identified by the United States. This sum shall be paid within 30 days of the entry of this Consent Decree. In addition, in the event the Defendants are found liable for any subsequent violation of the Fair Housing Act, that violation will be deemed a second violation for purposes of determining the civil penalty.In consideration of these payments, the private plaintiffs and all of the persons identified by the United States as aggrieved, shall execute a release substantially equivalent to that set forth in Appendix A appended hereto signifying that the amounts they are to receive constitute full settlement of any claim s they may have relating to the subject matter of this lawsuit. In addition, within seven (7) days of receipt of funds from the Defendants, the Plaintiffs will remove the Lis Pendens previously filed with Cook County Recorder of Deeds. The portions of such funds distributed to the aggrieved persons and the private parties are compensation for emotional distress and other injuries. For those persons receiving public benefits, such funds shall only be available for supplemental personal needs—expenses other than food, clothing, residence upkeep, medical costs, or maintenance needs—and are not intended to supplant entitlement to public funds, e.g., Supplemental Security Income or Medicaid. NOTICE TO THE PUBLIC It is further ORDERED that within thirty (30) days of the entry of this Decree, the Defendants shall implement affirmative steps to notify the members of the surrounding community that all dwellings owned, managed and/or leased by the Defendants are available without regard to sex or race. These steps shall include: Conducting all advertising for the rental of dwellings in accordance with the provisions of the regulations promulgated by the Department of Housing and Urban Development at 24 C.F.R. Part 109, a copy of which is appended to the Decree as Appendix B. The Defendants shall make this a condition of all contracts establishing an agency or employment contract for rental management of the property located at 1241 W. Loyola, Chicago, Illinois. Accordingly, the slogan "Equal Housing Opportunity" and the fair housing logo will appear in all display advertising. Such slogan, logo and statements shall be prominently placed and easily readable. Posting in any rental office managed, leased or used by the Defendants or their rental agents, a sign no smaller than 10 inches by 13 inches which indicates that all apartments are available for rent on a nondiscriminatory basis. The poster shall be in compliance with regulations promulgated by HUD and described in 24 C.F.R. Part 110. A copy of the poster appended to this Decree as Appendix B-1 will satisfy this requirement. Posting a notice of the Defendants' nondiscriminatory policies described in Part V, below, in any rental office owned, managed, leased or used by the Defendants or their rental agents. Copies of this notice and the tenant selection standards and procedures shall be made available upon request to all persons who inquire about apartments. A notice shall also be posted in each such office informing prospective housing applicants of the availability of these copies. Informing in writing, within five (5) days of engagement, any firm, association, company, corporation or other person Defendants employ or otherwise engage to act as a real estate agent, referral agency, or otherwise to manage or promote rental of her residential properties, of Defendants' policies of nondiscrimination and of all obligations of Defendants' and their agents under the terms of this Decree. Such entity or entities shall be further advised that violation of this Consent Decree could subject it or them to termination of its agency or employment relationship with Defendants and to possible sanctions by the Court. The parties agree that the notice in the form set forth in Appendix C shall satisfy Defendants' obligation under this paragraph. The name of such entity or entities, along with a copy of the written notification, shall be forwarded to the United States and the Lawyers Committee within ten (10) days of engagement. NOTICE TO EMPLOYEES It is further ORDERED that within fifteen (15) days of the entry of this Decree, Tim Martologo shall complete an educational program conducted by the Lawyers Committee regarding the rental process.Any management company employee or agent hired to manage 1241 W. Loyola shall either complete such an educational program by the Lawyers Committee or certify under oath that he or she has completed such training within the previous six months.[FN1] Each employee whose duties include collecting rent from, servicing the apartment units of, showing apartments to, investigating the qualifications of, or determining whether or not to rent to potential tenants, and each employee who supervises the work of any such employee, shall be required to participate in this program. This program shall include providing each employee with a copy of this Consent Decree, and informing them of their duties and obligations under this Decree as well as their duties and obligations under the Fair Housing Act. Such program shall also include: FN1. It is understood that, as a specific term in the contract establishing the agency or employment relationship, any employees or agents of the business entity engaged to provide rental agents or representatives to the Defendant will be included under the definition of "employee" as used in this section. Furnishing to each such agent and employee a letter in the form set forth in Appendix D summarizing Defendants' policies of nondiscrimination under the terms of this Decree, and informing each such person, in person or by general meeting, of the duties of Defendants and their agents and employees pursuant to these policies, and what disciplinary measures might be taken in the event of noncompliance, including possible sanctions by the Court. Securing a signed statement in the form set forth in Appendix E from each such agent and employee that: (1) he or she has received, read and understands the statements of nondiscrimination mentioned in Section V, Part A, above; (2) he or she has received the instructions described in Section V, Part A, above; and (3) he or she will comply with this Decree. Within fifteen (15) days of the commencement of an agency or employment relationship with Defendants, each new agent and employee of Defendants shall be provided with the information set forth above in Section V, Part A, and be required to sign the statement described in Section V, Part B, above. NONDISCRIMINATORY STANDARDS AND PROCEDURES It is further ORDERED that: The Defendants shall, upon entry of this Decree, and throughout its term, relinquish responsibility for daily rental management of the property located at 1241 W. Loyola, Chicago, Illinois. The agent, entity or person, who will assume responsibility for daily rental management of said property shall apply objective, uniform, racially and sexually nondiscriminatory standards and shall follow a uniform procedure for: 1) the processing of applications, 2) the establishment of waiting lists, and 3) the approval of prospective tenants for positions on waiting lists and/or for occupancy of available apartments. The race and sex-neutral standards and procedures for the rental of properties during the term of this Decree shall consist of those set forth in Appendix F hereto, except as subsequently modified according to the following procedures. Notice of any proposed modifications shall be provided to the United States and the Lawyers' Committee no later than thirty (30) days prior to implementation. Unless the United States or the Lawyers' Committee objects, the modifications will be effective at the end of the thirty (30) day period. If the United States or the Lawyers Committee objects, the modifications shall not be implemented. The parties shall attempt to resolve any dispute within thirty days of notice by the United States or the Lawyers' Committee that it objects to any such change. Upon expiration of the thirty day period either party may present the issue to the Court for resolution. The Defendants and their rental agent shall inform each individual who inquires about the availability of apartments or other dwellings of all vacancies that are immediately available and those that they reasonably believe will be available within the following ninety days. If no vacancy is so available, then the Defendants and their rental agents shall inform the person making inquiry of the availability of a waiting list, if any. If the individual making inquiry about an apartment or other dwelling wishes to make an application and/or be placed on any waiting list that is used for the properties owned, managed and/or leased by the Defendants, he/she shall immediately be afforded such opportunity. The Defendants and their rental agent shall inform the Lawyers' Committee of each apartment vacancy at 1241 W. Loyola, Chicago, Illinois, within 5 business days of the date upon which the apartment is vacated or notice is received of an intention to vacate, whichever is earlier. MAINTENANCE OF RECORDS It is further ORDERED that Defendants shall maintain the following records for each of the buildings and other properties that they own, manage and/or lease for the duration of this Order:[FN2] FN2. It is further agreed that any business entity engaged by the Defendant will also be responsible for carrying out the provisions of this section, and such responsibility will be noted in a specific provision of the contract establishing the agency or employment relationship. A log similar to that attached as Appendix G containing the following information about each person inquiring in person at any office of the Defendants or their rental agents about the availability or rental of a dwelling during the previous reporting period: The name, current address, telephone number, race or national origin (white, black, other), and sex; Date of visit, time arrived and left; How the person learned of the property (advertisement, referral etc.); Whether the person was shown an apartment, if so, the apartment numbers; (if not, why not); Name of the agent who gave the tour; Whether the person filled out an application and the date of the application; Whether the person rented an apartment or other dwelling and, if so, the date of the lease, and the amount of security deposit; If the person was rejected, the reason for such rejection; Whether the person was placed on a waiting list. All application forms completed by prospective or actual tenants for apartments or other dwellings owned, managed or leased by the Defendants, and all other documents relating to the application process, including correspondence, notes of credit or other reference checks and receipts. All vacancy lists, if utilized, and all waiting lists. Copies of all brochures used and advertisements placed by the Defendants, including the dates and media in which they were published or distributed. Copies of statements of employees in which they acknowledge that they understand their obligations under this Order, as required by Section V, Part B of this Order (Appendix E). It is further ORDERED that the United States and the Lawyers' Committee shall have the right to inspect and copy the records described above upon providing reasonable notice to Defendants. The United States and the Lawyers' Committee shall attempt to minimize any inconvenience to the Defendants during the inspection and copying of such records. REPORTING It is further ORDERED that four months after entry of this Order, and every four (4) months thereafter for a period of four (4) years, Defendants shall serve on the United States a report containing the following:[FN3] FN3. If there has been no activity under a particular reporting provision during the pertinent reporting period, a negative report should nevertheless be submitted. In the event of a reporting or notice violation, the United States or the Lawyers Committee will provide notice to Defendants and their counsel of such failure, to which Defendants shall respond within seven (7) days. Copies of all parts of the log being maintained pursuant to Section VII, Part B, above, for the period covered by the report; The number of advertisements published, the dates when such advertisements were published and the newspaper or other media in which such advertisements were published. If Defendants wish to submit copies of all advertisements placed during the reporting period in lieu of the above, such a submission will be an acceptable substitute; Photographs of all notices and signs posted pursuant to Section IV of the Decree; if the notices and signs have not changed during the reporting period, additional photographs need not be submitted; Copies of all letters and signed statements prepared or secured pursuant to Section V; and For all activities related to the rental of apartments or other dwellings that are conducted by outside agencies for the Defendants during the previous reporting period, the name, address and description of duties of each entity, if any, engaged by Defendant to conduct such activities, and copies of any contracts with or instructions to such entities. COMPLAINTS It is further ORDERED that Defendants, during the term of this Decree, shall report to the United States and the Lawyers' Committee in writing within thirty (30) days of receipt any complaint of sexual harassment or race discrimination which comes to the attention of Defendants at any property owned, managed or leased by the Defendants. Such report shall include full details of the complaint and any action taken or proposed by Defendants in response. NOTIFICATION It is further ORDERED that the Defendants shall notify the United States and the Lawyers' Committee of Defendants' intention to sell or otherwise dispose of its interest in any property owned, managed or leased by the Defendants. Such notification shall be made at least thirty days prior to the sale or transfer of interest and shall include the identity of the potential purchaser(s) or person(s) to whom the interest is being transferred. JURISDICTION This Decree shall remain in effect for a period of four years from the date of its entry and the Court shall retain jurisdiction of this action for all purposes relating to the enforcement of this Decree. Ordered this _____ day of __________________, 1994. ____________________________ UNITED STATES DISTRICT JUDGE The undersigned apply for and consent to the entry of this Decree: For the United States: DEVAL L. PATRICK Assistant Attorney General ____________________________ PAUL F. HANCOCK ISABELLE M. THABAULT BARBARA KAMMERMAN PATRICK J. MARKEY Attorneys Housing and Civil Enforcement Section Civil Rights Division United States Department of Justice P.O. Box 65998 Washington, D.C. 20035-5998 (202) 514-6140 For the Private Plaintiffs: _______________________________ Zeva Schub Lawyers' Committee for Fair Housing, Inc. 1263 W. Loyola Ave. Chicago, Ill. 60626 (312) 274-1111 _______________________________ Judith A. M. Scully, Esq. 407 S. Dearborn, Suite 450 Chicago, Ill. 60605 (312) 663-6300 For Defendant Gheorghi Nedialkov: _____________________ Gheorghi Nedialkov 2622 West Windsor Chicago, Ill. 60602 (312) 465-0856 ______________________ James Nagle James S. Jendryk Querrey & Harrow, Ltd. 2 Prudential Plaza 180 N. Stetson Avenue, Suite 3500 Chicago, Ill. 60601 (312) 540-7000 or 7518 For Defendant James Nedialkov: ______________________ James Nedialkov 2622 West Windsor Chicago, Ill. 60602 (312) 465-0856 [cited in Civil Rights Resource Manual 60]