Housing And Civil Enforcement Cases Documents

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF WISCONSIN

UNITED STATES OF AMERICA, Plaintiff,

v.

LYLE KRUEGER, Defendant.

__________________________

CIVIL ACTION NO. 98-C-0886
Judge Myron L. Gordon

CONSENT DECREE

This action was filed by the United States on September 8, 1998, and amended ______, 1999, to enforce the provisions of Title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Act Amendments of 1988, 42 U.S.C. 3601 et seq. (the Fair Housing Act).

Defendant owns six (6) residential rental properties, containing ten (10) rental units, and is in the business of renting and, at times, managing these properties. These properties are located in the Eastern District of Wisconsin, all of which are at the following addresses:

  • 1626 59th Street, Kenosha, WI (4 two-room efficiencies)
  • 1922-24 61st Street, Kenosha, WI (2 three-bedroom apartments)
  • 1870 Sheridan Road, Kenosha, WI (3 mobile home trailers)
  • 20030 82d Street, Bristol, WI (1 single family home)

In this action, the United States alleges that Defendant has engaged in a pattern or practice of sexual harassment in the rental of his apartments, in violation of the Fair Housing Act. The United States alleges specifically that Defendant Lyle Krueger implemented this pattern or practice by subjecting female tenants to extensive, continuous, and unwelcome sexual harassment by conditioning their tenancy on the grant of sexual favors, by creating a hostile environment for female tenants, and by retaliating against women who filed complaints of sexual harassment against him or refused to grant him sexual favors, in violation of 42 U.S.C. 3604(b) and 3617.

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 all of the facts alleged by the United States, the parties consent to the entry of this Decree.

  1. MONETARY RELIEF

    It is ORDERED that Defendant shall pay the following sums, to be delivered to the United States Department of Justice(1) within forty-five (45) days of entry of this Consent Decree or by August 6, 1999, whichever is earlier, with the exception Section C., below, which includes an earlier payment date:

    1. $22,622 plus interest on behalf of Debbie Maze, as ordered by the United States Department of Housing and Urban Development (HUD) and affirmed by the United States Court of Appeals for the Seventh Circuit in Krueger v. Cuomo, 115 F.3d 487 (7th Cir. 1997). Interest of 5.67% shall be computed daily from August 23, 1996, to the date payment is tendered, and compounded annually.(2)
    2. $10,000 plus interest to the United States, as ordered by HUD and affirmed by the United States Court of Appeals for the Seventh Circuit in Krueger v. Cuomo, 115 F.3d 487 (7th Cir. 1997).(3) Interest of 5.67% shall be computed daily from August 23, 1996 to the date payment is tendered, and compounded annually.
    3. $2,000 plus interest on behalf of Teresa Szopinski. Interest of 5.60% shall be computed daily from September 30, 1997, to the date payment is tendered, and compounded annually. $1,000 of this amount shall be paid by July 6, 1999. The remainder shall be paid within forty-five days of entry of this Decree, or by August 6, 1999, whichever is earlier.
    4. $2,200 on behalf of Sandra Johnson.

    In consideration of these payments, the aggrieved persons identified above shall execute the release set forth in Appendix A appended hereto signifying that the amounts they are to receive constitute full settlement of any claims they may have relating to the subject matter of this lawsuit. In addition, within seven (7) days of receipt of funds from Defendant, the United States will remove the Abstract of Judgment Notice previously filed with the Kenosha County Recorder of Deeds.

  2. INJUNCTION
    1. It is hereby ORDERED that Defendant is permanently enjoined from violating the Fair Housing Act. In particular, he is permanently enjoined from:
      1. Making requests for sexual favors, or 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.
      2. Making any unwelcome sexual advances or requests for sexual favors or conduct of a sexual nature when such advances or requests have the purpose or effect of substantially interfering with an individual's housing rights or creating an intimidating, hostile, or offensive housing environment.
      3. Coercing, intimidating, threatening, or interfering with any person in the exercise or enjoyment of, or on account of having exercised or enjoyed, or on account of having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by the Fair Housing Act.
    2. It is further ORDERED that Defendant is permanently enjoined from taking the following actions:
      1. Making any unwelcome sexual advance toward any person who rents or occupies a dwelling owned or managed by Defendant, or toward Debbie Maze, Teresa Szopinski, or Sandra Johnson.
      2. Coercing, intimidating, threatening, or contacting Debbie Maze, Teresa Szopinski, or Sandra Johnson.
    3. It is hereby ORDERED that for a period of six (6) years from the date of entry of this Consent Decree:
      1. Defendant shall be enjoined from managing any residential rental properties. This includes the rental properties listed in this Consent Decree, other properties owned by Defendant, properties acquired by Defendant in the future, and any other residential rental properties. The management activities in which Defendant will not participate include, but are not limited to, face-to-face contact with potential renters during the application process (e.g., showing rental units to prospective renters or accepting applications from prospective renters), collecting rent, maintenance or upkeep of occupied rental properties, and face-to-face eviction of tenants. Defendant may continue to personally perform maintenance on vacant lots or to properties in which every unit is vacant, so long as he has no contact with tenants or prospective tenants.
      2. Defendant shall provide the United States in writing with the name and address of any residential rental property owned in whole or in part by him not already listed in this Consent Decree, or acquired by him in the future, within fifteen (15) days of the date of entry of this Decree or acquisition of the property, whichever is later. Defendant shall serve written notice on the United States of any management company or person selected to manage the property within fifteen (15) days of the date of entry of this Decree or of the managing agent's selection, whichever is later. Defendant shall also serve written notice on the United States of the name of the purchaser of any of his properties within fifteen (15) days of the date of sale.
      3. Defendant shall inform in writing any firm, association, company, corporation or other person Defendant employs or otherwise engages to act as a real estate agent, referral agency, or otherwise to manage or promote rental of his residential properties of Defendant's policies of nondiscrimination and of Defendant's obligations under the terms of this Decree. The parties agree that the notice and certification in the form set forth in Appendix B shall satisfy Defendant's obligation under this paragraph. Notice to the managing agent shall be given within ten (10) days of the entry of this Decree, or within ten (10) days of engagement, whichever is later. The name of such entity or entities, along with a copy of the signed certifications in Appendix B shall be forwarded to the United States Department of Justice within fifteen (15) days of the entry of this Decree, or within fifteen (15) days of engagement, whichever is later.
      4. Defendant shall be permitted to enter his rental properties no more than once every fifteen (15) days for the purposes of inspecting the properties, showing them to prospective purchasers, or to prospective management agents. During such visits, Defendant shall at all times be accompanied by another person, may not have any contact with tenants, and may enter only the common areas. This prohibition shall not apply to areas in which Defendant resides, to vacant lots, or to properties in which every rental unit is vacant.
    4. It is hereby ORDERED that the United States shall have the right to inspect and copy all rental records for any properties owned in whole or in part or managed by Defendant upon providing at least fifteen (15) days notice to Defendant, his attorney-in-fact Barbara Hochstein, and his managing agent. The United States shall attempt to minimize any inconvenience to Defendant and the managing agent during the inspection and copying of such records.
    5. It is hereby ORDERED that Defendant shall report to the Department of Justice in writing any housing complaint which comes to the attention of Defendant that alleges violations of the Fair Housing Act suffered by one of Defendant's tenants. Defendant shall provide such notice to the Department of Justice within thirty (30) days of becoming aware of such a complaint.
    6. Contingent on Defendant's compliance with this Decree, the United States agrees not to seek enforcement of any requirements ordered in Cuomo v. Krueger that are not otherwise contained in this Consent Decree.
  3. JURISDICTION

    This Court shall retain jurisdiction of this action for all purposes relating to the enforcement of this Decree.

Ordered this _____________day of __________________________, 1999.

Judge Myron L. Gordon
UNITED STATES DISTRICT JUDGE

The undersigned apply for and consent to the entry of this Decree:

For the United States:

BILL LANN LEE
Acting Assistant Attorney General

JOAN A. MAGAGNA
ROBERT S. BERMAN
MICHELLE M. ARONOWITZ
Attorneys
Housing and Civil Enforcement Section
Civil Rights Division
United States Department of Justice
P.O. Box 65998
Washington, D.C. 20035-5998
(202) 305-1077

For Defendant Lyle Krueger:

LYLE KRUEGER
20030 82d Street
P.O. Box 98
Bristol, WI 53104
(414) 857-2119

BARBARA J. HOCHSTEIN
Attorney-in-Fact
2490 Kensington Avenue
Salt Lake City, UT 84108
(801) 583-3849


APPENDIX A

RELEASE OF ALL CLAIMS

State of _______________________

County of ______________________

Contingent upon payment to me by Lyle Krueger (hereinafter Defendant) of [sum spelled out] Dollars ($_______________), which is to be paid to me pursuant to the provisions of the Consent Decree entered on [Date] in United States v. Krueger, Civil Action No. 98-C-0886 (E.D. Wis.), I hereby release and forever discharge Defendant in this case of and from all legal and equitable or administrative claims or causes of action arising out of any of the allegations made in this case and all claims which were or could have been pursued based on these allegations. I acknowledge that a copy of the Consent Decree in this action has been made available to me.

I HAVE READ THIS RELEASE AND UNDERSTAND THE CONTENTS THEREOF AND I EXECUTE THIS RELEASE OF MY OWN FREE ACT AND DEED.

Signed this ________________ day of ________________________, 199_.

[SIGNATURE]

[FULL NAME TYPED]

Social Security Number

Other Identification

Subscribed and sworn to before me this __________________ day of __________________, 199_.

____________________

Notary Public

My Commission expires:


APPENDIX B

NOTICE OF NONDISCRIMINATION POLICY

This notice is to make you aware of the nondiscrimination policy of Lyle Krueger. It is his policy to comply with Title VIII of the Civil Rights Act of 1968 (commonly known as the Fair Housing Act), as amended by the Fair Housing Amendments Act of 1988, by ensuring that apartments are available to all persons without regard to sex or race, and that the terms and conditions of rental are the same for females as for males.

It is required that any person or entity employed or otherwise engaged by Lyle Krueger for the purpose of renting, selling, managing, or maintaining the rental units must follow this nondiscrimination policy. Violation of this policy could subject that person or entity to termination of the agency or employment relationship and to possible sanctions by the Court.

___________________________ _______________

Lyle Krueger Date

I hereby acknowledge that I have read this Notice, and have received and read a copy of the Consent Decree entered on ____________________, 1999, in the case of United States v. Krueger, Civil Action No. 98-C-0886 (E.D. Wis.).

_________________________

Signature

_________________________

Date

______________________________________________________________________

Name and Address of Agent/Employee (typed)

__________________________

Title


1. Checks, notice or any other certification required under the terms of the Consent Decree shall be mailed to the Chief, Housing and Civil Enforcement Section, Civil Rights Division, United States Department of Justice, P.O. Box 65998, Washington, D.C. 20035-5998.

2. Interest calculations shall be made pursuant to 28 U.S.C. 1961.

3. The $200 already paid by Defendant shall be subtracted from this amount, but interest shall accrue on this amount from August 23, 1996, to the date payment was made. Defendant paid $100 on July 13, 1998, and another $100 on August 25, 1998. > >

Updated August 6, 2015

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