UNITED STATES OF AMERICA,

           Plaintiff,

v.

DAVID R. BEAUDET

            Defendant.

______________________________

I.     INTRODUCTION

This action was filed by the United States on February 19, 2003, 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.

In its complaint, the United States alleges that Defendant David Beaudet engaged in a pattern or practice of discrimination on the basis of sex, and/or a denial of rights to a group of persons, in the rental of dwelling units he has owned and/or managed in St. Paul, Minnesota, in violation of 42 U.S.C. § 3614. The properties owned and/or managed wholly or in part by Defendant shall be referred to herein collectively as the "Subject Properties." The United States alleges that David Beaudet subjected female tenants to extensive, unwelcome, and uninvited sexual harassment; conditioned aspects of tenancy on compliance with sexual favors; and created a hostile environment for female tenants, in violation of Sections 804(a), 804(b), and 804(c), of the Fair Housing Act, 42 U.S.C. §§ 3604(a)-(c).

This Decree shall not constitute an admission or acknowledgment by Defendant or a determination of the validity, of any claims asserted by the United States. Mr. Beaudet, who is married to Susanne Beaudet, denies these allegations in their entirety.

The parties have agreed that in order to avoid protracted and costly litigation, this controversy should be resolved without a trial or adjudication of any of the facts alleged by the United States. Therefore, the parties consent to the entry of this Decree.

This agreement constitutes full resolution of the United States's claim that Defendant engaged in a pattern or practice of discrimination on the basis of sex at properties owned and managed by Defendant in violation the Fair Housing Act.

II.     SCOPE AND TERM OF DECREE

1. The provisions of the Order shall apply to Defendant, his employees, and any Management Company retained pursuant to Paragraph 5 of this Decree, except that the obligation for monetary payments to the United States shall only bind Defendant and his estate.

2. This Decree is effective immediately upon its entry by the Court. For purposes of this Decree, the phrase "date of this Decree" shall refer to the date on which the Court enters this Decree.

3. This Decree shall be in effect for a period of five (5) years from the date of this Decree.

4. IT IS HEREBY ORDERED, ADJUDGED AND AGREED that Defendant, his employees, and any Management Company retained pursuant to Paragraph 5 of this Decree are hereby enjoined from:

1. Refusing to rent a dwelling unit, refusing or failing to provide or offer information about a dwelling unit, or otherwise making unavailable or denying a dwelling unit to any person because of sex;
2. Discriminating against any person in the terms, conditions or privileges of renting a dwelling unit, or in the provision of services or facilities in connection therewith, because of sex;
3. Making, printing, publishing, or causing to be made, printed, or published any notice, statement or advertisement with respect to the rental of a dwelling unit that states any preference, limitation or discrimination based on sex; or
4. Coercing, intimidating, threatening or interfering with any person in the exercise or enjoyment of, or on account of her having exercised or enjoyed, or on account of her having aided and encouraged any other person in the exercise or enjoyment of, any right granted by 42 U.S.C. §§ 3603-6.

5. For the term of this Decree, Defendant shall retain an independent management company, approved by the United States (hereinafter "Management Company"), to manage the rental of all of the residential rental properties which he owns ⁽¹⁾ (the "Subject Properties"). ⁽²⁾ Defendant shall retain the Management Company within sixty (60) days of the date of this Decree and shall continue to retain such company for the duration of this Decree that Defendant owns any residential rental properties. If after retaining an independent management company Defendant wishes to change independent management companies, he may do so provided that any subsequent management companies must also be approved by the United States and comply with the requirements for the Management Company as described in this Decree.

The Management Company shall be responsible for all aspects of management of the Subject Properties that are rented or available for rent, including showing and renting units, making repairs, collecting rents, determining whom to rent to and/or evict, and all other aspects of the rental process. Defendant shall refrain from entering the premises of the Subject Properties except that Defendant may do so, when accompanied by a Management Company representative, when it is necessary for him to inspect the property or show it to a prospective buyer, if that function cannot be reasonably delegated to an agent. However, in exigent circumstances requiring immediate aid or action, Defendant may enter the premises unaccompanied for the period of the exigency.

For the duration of this Decree that Defendant is required to retain a Management Company, Defendant shall require the Management Company to do the following:

1. Implement, subject to the United States's approval, a written policy against sexual harassment, including a formal complaint procedure. A copy of this policy and procedure shall be provided to counsel for the United States ⁽³⁾

   within forty-five days (45) days after the date of entry of this Decree. This policy and procedure shall be implemented within fifteen (15) days of Defendant providing the United States with a copy of this policy, unless objected to by the United States, and at that time the Manager shall notify all new and current tenants at the Subject Properties of the policy and procedure.

2. The Management Company shall ensure that all of its employees who will be performing any duties in relation to the Subject Properties are familiar with the requirements of the Fair Housing Act.
3. Post an "Equal Housing Opportunity" sign in any rental office through which the Subject Properties are rented, which sign indicates that all apartments are available for rent on a nondiscriminatory basis. An 11 inch x 14 inch poster substantially equivalent to the reduced sample appended to this Decree as Attachment B will satisfy this requirement. Such poster shall be placed in a prominent, well lit, and easily readable location.
4. Require that all advertising conducted for any of the Subject Properties in newspapers, telephone directories, radio, television or other media, and all billboards, signs (including at the entrance to the property), pamphlets, brochures and other promotional literature, include either a fair housing logo, the words "equal housing opportunity provider," and/or the following sentence:

We are an equal opportunity housing provider. We do not discriminate on the basis of race, color, national origin, religion, sex, familial status or disability.

The words or logo should be prominently placed and easily legible.

5. Within fifteen (15) days after being retained, shall send a list of all tenants at the Subject Properties and their telephone numbers, if known, to counsel for the United States. The Management Company shall update this list every six (6) months as required by change in tenancy. Maintain all rental records kept in relation to rental of the Subject Properties, and allow the United States to inspect and copy all such records upon reasonable notice.
6. Notify the United States in the event it obtains any information indicating that Defendant is in violation of this Decree relative to property managed by the Management Company.
7. Provide any information reasonably related to compliance with this Decree that is requested in writing by the United States.

6. Defendant shall report to the United States in the event that he purchases, inherits, or otherwise acquires an interest in any residential rental property, or in the event that he sells, transfers or otherwise disposes of any interest in any of the Subject Properties. Such notification shall be made within thirty (30) days after the purchase, inheritance, acquisition, 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.

IV.     COMPENSATION OF AGGRIEVED PERSONS

A.   Monetary Relief for Aggrieved Persons

7. Defendant shall pay the total sum of four hundred thousand dollars ($400,000), for the purpose of compensating the allegedly aggrieved persons listed in Attachment C, in the manner and amount listed in Attachment C. Terms 7a-c shall constitute the Payment Schedule.

1. On or before December 1, 2004, Defendant shall pay one hundred and fifty thousand dollars ($150,000) for the purpose of compensating aggrieved persons (the "First Installment Payment") in the manner set forth in Attachment C.
2. On or before June 1, 2005, Defendant shall pay one hundred thousand dollars ($100,000) for the purpose of compensating aggrieved persons (the "Second Installment Payment") in the manner set forth in Attachment C.
3. On or before December 1, 2005, Defendant shall pay one hundred and fifty thousand dollars ($150,000) for the purpose of compensating aggrieved persons (the "Third Installment Payment") in the manner set forth in Attachment C.

8. If Defendant fails to make an installment payment within the time or in the amounts specified above, for the first such failure Defendant shall be required to pay an additional $25,000 (twenty-five thousand dollars) in liquidated damages to the United States by sending a check for such amount, made payable to the United States treasury, to Counsel for the United States within 30 days of the missed deadline for making the required installment payment. If Defendant fails to make the installment payment or the $25,000 (twenty-five thousand dollars) liquidated damages payment within 30 days of the missed deadline for making the installment payment, Defendant shall be required to pay an additional $5,000 (five thousand dollars) in liquidated damages every 30 (thirty) days, up to a maximum $25,000 (twenty-five thousand dollars), until such time as both the installment payment and any outstanding liquidated damages payment(s) have been paid.

9. If Defendant fails a second time to make an installment payment within the time or in the amounts specified above, Defendant shall be required to pay an additional $50,000 (fifty thousand dollars) in liquidated damages to the United States by sending a check for such amount, made payable to the United States treasury, to Counsel for the United States within 30 days of the missed deadline for making the required installment payment. If Defendant fails to make the installment payment or the $50,000 (fifty thousand dollars) liquidated damages payment within 30 days of the missed deadline for making the installment payment, Defendant shall be required to pay an additional $5,000 (five thousand dollars) in liquidated damages every 30 (thirty) days, up to a maximum $25,000 (twenty-five thousand dollars), until such time as both the installment payment and any outstanding liquidated damages payment(s) have been paid.

10. If Defendant fails a third time to make an installment payment within the time or in the amounts specified above, Defendant shall be required to pay an additional $25,000 (twenty-five thousand dollars) in liquidated damages to the United States by sending a check for such amount, made payable to the United States treasury, to Counsel for the United States within 30 days of the missed deadline for making the required installment payment. If Defendant fails to make the installment payment or the $25,000 (twenty-five thousand dollars) liquidated damages payment within 30 days of the missed deadline for making the installment payment, Defendant shall be required to pay an additional $5,000 (five thousand dollars) in liquidated damages every 30 (thirty) days, up to a maximum $25,000 (twenty-five thousand dollars), until such time as both the installment payment and any outstanding liquidated damages payment(s) have been paid.

The liquidated damages described above shall be in addition to any other remedies the Court may impose pursuant to Paragraph 16 of this Decree.

11. No aggrieved person shall be paid until he/she has executed and delivered to counsel for the United States the release at Attachment D. Said counsel for the United States shall then deliver true and correct copies of all such executed releases to David Beaudet.

V.    CIVIL PENALTY

12. On or before December 1, 2005, Defendant shall issue a check or money order in the amount of $25,000.00 (twenty-five thousand dollars) payable to the United States Treasury as a civil penalty pursuant to 42 U.S.C. § 3614(d)(1)(C) to vindicate the public interest. Defendant shall deliver the check or money order to counsel for the United States.

13. By consenting to entry of this Decree, the United States and Defendant agree that in the event it is determined in any future action or proceeding brought by the United States or any agency thereof that Defendant has discriminated on the basis of sex in violation(s) of the Fair Housing Act, such violation(s) shall constitute a "subsequent violation" pursuant to 42 U.S.C. § 3614(d)(1)(C)(ii).

14. Any time limits for performance imposed by this Order may be extended by mutual agreement of the parties.

VII.     DISMISSAL

15. Upon entry of this Consent Order, this case shall be dismissed. The Court shall retain jurisdiction for a period of five (5) years for the purpose of enforcement or interpretation of the provisions of this Order upon the filing of an appropriate motion by either party.

16. The parties to this Consent Order shall endeavor in good faith to resolve informally any differences regarding interpretation of and compliance with this Order prior to bringing such matters to the Court for resolution. However, in the event of a failure by either party, whether willful or otherwise, to perform in a timely manner any act required by this Order or in the event of any other act violating any provision hereof, any party may move this Court to reopen the case and impose any remedy authorized by law or equity.

Ordered this ___________ day of __________, 2004.

_________________________________
UNITED STATES DISTRICT JUDGE

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

FOR PLAINTIFF THE UNITED STATES:

ATTACHMENT A

List of residential rental properties owned or managed by the Defendant

All of these addresses are in St. Paul, Minnesota:

287-289 Avon
1066 Blair
1198 Burr
654 Carroll
656 Carroll
954 Carroll
411 Charles
540 Charles
941 Cypress
686 Dayton
606 Edmund
386 Goodrich
777 Iglehart
780 Iglehart
785 Iglehart
1072 Iglehart
1094 Iglehart
252 Lexington North
408 Lexington
390 Maple
630 Marshall
514 Maryland East
540 Nevada
2649 Penn Ave. No.
1081 Reaney
1115 Reaney
944 Russell
390 Sherburne
483 Sherburne
116 Sims
664-666 Thomas
738 Wilson
890 York

ATTACHMENT B

FAIR HOUSING POSTER

Pursuant to Paragraph 7(a) of the Consent Decree, on December 1, 2004, David R. Beaudet shall deposit the First Installment Payment of $150,000.00 in an escrow account administered by the law firm Eastlund, Solstad, Cade & Hutchinson, LTD. This amount is for the purpose of compensating the allegedly aggrieved persons ⁽⁴⁾ and shall be distributed in the following manner. Within seven (7) business days of receipt of the funds, the law firm Eastlund, Solstad, Cade & Hutchinson, LTD shall send to counsel for the United States, via express mail, checks made payable to the following persons in the amounts indicated: ⁽⁵⁾

Yvette Armstrong $10,000.00

Glender Atkinson $10,000.00

Stacy Chester $10,000.00

Debra Holt $10,000.00

Jilliena Jackson ⁽⁶⁾ $10,000.00

(Minor child of Maedell Straub)

Vowanda Jiles $10,000.00

Esther Johnson $10,000.00

Frances Maenka $10,000.00

Tonya Morrell $10,000.00

Wanda Parker $10,000.00

Dishone Pickens $10,000.00

Sabrina Steed $10,000.00

Maedell Straub $10,000.00

Luciana Vance $10,000.00

Linda Williams $10,000.00

Pursuant to Paragraph 7(b) of the Consent Decree, on June 1, 2005, David R. Beaudet shall deposit the Second Installment Payment of $100,000.00 in an escrow account administered by the law firm Eastlund, Solstad, Cade & Hutchinson, LTD. This amount is for the purpose of compensating the allegedly aggrieved persons and shall be distributed in the following manner. Within seven (7) business days of receipt of the funds, the law firm Eastlund, Solstad, Cade & Hutchinson, LTD. shall send to counsel for the United States, ⁽⁷⁾ via express mail, checks made payable to the following persons in the amounts indicated:

Yvette Armstrong $10,000.00

Glender Atkinson $ 5,000.00

Stacy Chester $ 5,000.00

Debra Holt $ 5,000.00

Jilliena Jackson $ 5,000.00

(Minor child of Maedell Straub)

Vowanda Jiles $ 5,000.00

Esther Johnson $ 5,000.00

Frances Maenka $ 5,000.00

Monica Mendoza $10,000.00

Tonya Morrell $10,000.00

Wanda Parker $ 5,000.00

Dishone Pickens $ 5,000.00

Sabrina Steed $ 5,000.00

Maedell Straub $10,000.00

Luciana Vance $ 5,000.00

Linda Williams $ 5,000.00

Pursuant to Paragraph 7(c) of the Consent Decree, on December 1, 2005, David R. Beaudet shall deposit the Second Installment Payment of $150,000.00 in an escrow account administered by the law firm Eastlund, Solstad, Cade & Hutchinson, LTD. This amount is for the purpose of compensating the allegedly aggrieved persons and shall be distributed in the following manner. Within seven (7) business days of receipt of the funds, the law firm Eastlund, Solstad, Cade & Hutchinson, LTD. shall send to counsel for the United States, ⁽⁸⁾ via express mail, checks made payable to the following persons in the amounts indicated:

Yvette Armstrong $30,000.00

Glender Atkinson $10,000.00

Debra Holt $10,000.00

Vowanda Jiles $10,000.00

Esther Johnson $10,000.00

Frances Maenka $10,000.00

Tonya Morrell $30,000.00

Wanda Parker $10,000.00

Maedell Straub $30,000.00

ATTACHMENT D

FULL AND FINAL RELEASE OF CLAIMS

WHEREAS, I, ______________________ claim to be an aggrieved person within the meaning of 42 U.S.C. § 3614(d)(1)(B) and allege discrimination by David Beaudet in connection with my residency in rental property owned or managed by Mr. Beaudet; and

WHEREAS, the United States and Mr. Beaudet have voluntarily entered into a resolution of this matter and which resolution provides for payment by David Beaudet to the United States of a sum of money for the settlement of claims of aggrieved persons;

NOW, THEREFORE, in consideration of the amount of $___________, paid to me from the above-mentioned settlement funds, I therefore agree to release and discharge David Beaudet, his representatives, employees, agents, successors and assigns from any and all damages, actions, causes of action, claims, charges and demands of any kind in law or equity relating to residency in any property owned or managed by David Beaudet howsoever originating and existing to the date hereof.

Date: _______________________                ____________________________________

1. "Owns" does not include a contract vendor's interest, or any other security interest.

2. The definition of "Subject Properties" includes the properties covered by the Complaint, identified in Attachment A, as well as any additional residential rental properties which Defendant may purchase or acquire during the term of this Decree.

3. For purposes of this Decree, counsel for the United States is Chief, Housing and Civil Enforcement Section, Civil Rights Division, United States Department of Justice, 950 Pennsylvania Ave., N.W., Housing & Civil Enforcement Section - G St. Washington, D.C. 20530, Attn: DJ# 175-39-84.

4. For the purposes of settlement of this lawsuit, the United States has identified no persons other than those identified in this Attachment C who shall receive compensation pursuant to Paragraph 7 of the Consent Decree.

5. Pursuant to Paragraph 11 of the Consent Decree, the United States shall not distribute a check to an allegedly aggrieved person until it is possession of a signed release from that person.

6. No payment shall be distributed to Jilliena Jackson, pursuant to Paragraph 7 of this Decree, unless and until the Court has a hearing on a petition regarding the investment of funds for Jillena Jackson and has issued an order approving the petition.

7. The checks should be sent by express mail to the following address: Chief, Housing and Civil Enforcement Section, Civil Rights Division, 1800 G Street, N.W. Suite 7002, Washington, DC 20006, Attn: DJ# 175-39-84.

8. The checks should be sent by express mail to the following address:

1800 G Street, NW
Suite 7002
Washington, DC 20006