IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NORTH DAKOTA
UNITED STATES OF AMERICA,
Plaintiff,
v.
CA No. A1-00-143
KELVIN A. MOLDENHAUER; and
LAUNA L. MOLDENHAUER,
Defendants
______________________________
COMPLAINT
The United States of America alleges:
- This action is brought by the United States on behalf
of Jeff and Bobbi Zueger, their minor child, Katie Zueger; Deanne
and Stewart Schatz, their minor children, Kaeley and Daxton
Schatz; and the North Dakota Fair Housing Council, pursuant to
Section 812(o) of the Fair Housing Act, as amended, 42 U.S.C. §
3612(o).
- This Court has jurisdiction over this action under 28
U.S.C. § 1345 and 42 U.S.C. § 3612(o).
- Defendants Kelvin A. and Launa L. Moldenhauer are
residents of the District of North Dakota. At all relevant
times, Defendants Kelvin and Launa Moldenhauer owned K & L
Apartments, located in Bismarck, North Dakota.
- At all relevant times, in addition to owning K & L
Apartments, Kelvin Moldenhauer reviewed applications for rental
and made decisions to accept or reject prospective tenants.
- Jeff Zueger, Bobbi Zueger and their minor child Katie
Zueger are residents of the State of North Dakota.
- Deanne and Stewart Schatz and their minor children,
Kaeley and Daxton Schatz, are residents of the State of North
Dakota.
- The North Dakota Fair Housing Council, Inc. (NDFHC), is
a non-profit corporation organized under the laws of the State of
North Dakota with its principal place of business located in
Bismarck, North Dakota. NDFHC's mission is to achieve equal
housing for its constituents in North Dakota, including families
with children, through education, counseling, referral services
and enforcement activities.
- The units in K & L Apartments are dwellings within the
meaning of 42 U.S.C. § 3602(b).
- On or about April 1, 1996, Jeff Zueger called K & L
Apartments to inquire about vacancies. Mr. Zueger spoke with an
employee of K & L Apartments who stated a unit would be available
May 1 and another on June 1. The employee referred Mr. Zueger to
the resident manager, Pearl Moldenhauer, who is the mother of
Defendant Kelvin Moldenhauer.
- Mr. Zueger contacted Pearl Moldenhauer. Ms.
Moldenhauer asked Mr. Zueger whether he had any children. Mr.
Zueger told her that he had a daughter.
- The Zuegers viewed a unit and thereafter told Ms.
Moldenhauer that they would like to rent the unit that would
be available on May 1.
- Defendants refused to rent the unit to the Zuegers
because they had a child. Defendants, through their agents,
indicated they did not want children in the available units.
- After denying the unit to the Zuegers, Defendants
continued to advertise the unit.
- On or about April 8, 1996, the Zuegers contacted NDFHC
for legal assistance on this matter. NDFHC thereafter diverted
resources to investigate and provide assistance to the Zuegers in
pursuing their complaint.
- On or about November 16, 1998, Deanne Schatz called K &
L Apartments in response to an advertisement in the Bismarck
Tribune offering two-bedroom apartments for rent. Ms. Schatz
told Defendant Kelvin Moldenhauer that she had young children.
Defendants refused to rent a unit to the Schatz family because
they had young children.
- On or about November 18, 1998, the Schatzes contacted
NDFHC for legal assistance on this matter. NDFHC diverted
resources to investigate and assist the Schatzes in pursuing
their complaint.
CLAIM FOR RELIEF
- The United States re-alleges and herein incorporates by
reference the allegations set forth in paragraphs 1-16 above.
- On or about June 5, 1996, Jeff and Bobbi Zueger filed a
timely complaint with the Department of Housing and Urban
Development (HUD) alleging that Defendants had discriminated
against them and their minor child because of familial status.
- On or about September 1, 1999, Deanne and Stewart
Schatz filed a timely complaint with HUD alleging that Defendants
had discriminated against them and their minor children because
of familial status.
- On or about September 1, 1999, NDFHC filed a timely
complaint with HUD alleging that Defendants, in discriminating
against families with children, frustrated NDFHC's mission of
achieving equal housing through education, counseling, referral
services and enforcement activities and diverted NDFHC's
resources.
- Pursuant to the requirements of 42 U.S.C. §§ 3610(a) &
(b), the Secretary of Housing and Urban Development conducted and
completed an investigation of the complaints filed by Jeff and
Bobbi Zueger, Deanne and Stewart Schatz, and NDFHC, attempted
conciliation without success, and prepared a final investigative
report. Based on information gathered in the investigation, the
Secretary, pursuant to 42 U.S.C. § 3610(g)(1), determined that
reasonable cause exists to believe that discriminatory housing
practices had occurred. Accordingly, on or about September 15,
2000, the Secretary issued a Charge of Discrimination pursuant to
42 U.S.C. § 3610(g)(2)(A), charging Defendants with engaging in
discriminatory housing practices in violation of the Fair Housing
Act.
- On or about September 29, 2000, Defendants Kelvin and
Launa Moldenhauer elected to have the Charge resolved in a civil
action filed in federal district court, pursuant to 42 U.S.C. §
3612(a).
- On October 2, 2000, the Chief Administrative Law Judge
issued a Notice of Election of Judicial Determination and
terminated the administrative proceeding on the complaints filed
by Jeff and Bobbi Zueger, Deanne and Stewart Schatz, and NDFHC.
- Following this Notice of Election, the Secretary of
Housing and Urban Development authorized the Attorney General to
commence a civil action, pursuant to 42 U.S.C. § 3612(o).
- Defendants, through the actions referred to above,
have:
- refused to rent, or to negotiate for the rental
of, or otherwise made unavailable or denied, a
dwelling because of familial status, in violation
of 42 U.S.C. § 3604(a);
- made or caused to be made, statements with respect
to the sale or rental of a dwelling that indicate
a preference, limitation or discrimination because
of familial status, in violation of 42 U.S.C. §
3604(c); and
- represented to individuals, because of familial
status, that dwellings were not available for
inspection or rental when such dwellings were in
fact so available, in violation of 42 U.S.C. §
3604(d).
- Jeff and Bobbi Zueger and their daughter Katie Zueger
are aggrieved persons, as defined in 42 U.S.C. § 3602(i), and
have suffered damages as a result of the Defendants'
discriminatory conduct described above.
- Deanne and Stewart Schatz and their children Kaeley and
Daxton Schatz are aggrieved persons, as defined in 42 U.S.C. §
3602(i), and have suffered damages as a result of the Defendants'
discriminatory conduct described above.
- NDFHC is an aggrieved person, as defined in 42 U.S.C. §
3602(i), and has suffered damages as a result of the Defendants'
discriminatory conduct described above.
- The discriminatory actions of Defendants were
intentional, willful, and taken in disregard for the rights of
Jeff, Bobbi and Katie Zueger, Deanne, Stewart, Kaeley and Daxton
Schatz, and NDFHC.
WHEREFORE, the United States prays that the Court enter an
ORDER that:
- Declares that the discriminatory housing practices of
Defendants as set forth above violate the Fair Housing Act, as
amended, 42 U.S.C. §§ 3601-3619;
- Enjoins the Defendants, their agents, employees, and
successors, and all other persons in active concert or
participation with any of them, from discriminating on the basis
of familial status against any person in any aspect of the rental
of a dwelling;
- Awards such damages as would fully compensate Jeff,
Bobbi and Katie Zueger, Deanne, Stewart, Kaeley and Daxton
Schatz, and the North Dakota Fair Housing Council for injuries
caused by Defendants' discriminatory conduct, pursuant to 42
U.S.C. §§ 3612(o)(3) and 3613(c)(1); and
- Awards punitive damages to Jeff, Bobbi and Katie
Zueger, Deanne, Stewart, Kaeley and Daxton Schatz, and the North
Dakota Fair Housing Council pursuant to 42 U.S.C. §§ 3612(o)(3)
and 3613 (c)(1).
The United States further prays for such additional relief
as the interests of justice may require.
JANET RENO
Attorney General
By: BILL LANN LEE
Assistant Attorney General
Civil Rights Division
JOAN A. MAGAGNA
Chief, Housing & Civil Enforcement Section
ISABELLE M. THABAULT
Deputy Chief
ELIZABETH O. TUCCI
Attorney
Housing & Civil Enforcement Section
Civil Rights Division
Department of Justice
P.O. Box 65998
Washington, DC 20035-5998
Tel: (202) 514-8036
Fax: (202) 514-1116
JOHN SCHNEIDER
United States Attorney
By: SHON HASTINGS
Assistant United States Attorney
655 First Ave. North
Suite 250
Fargo, ND 58102-4932
Tel: (701) 297-7400
Fax: (701) 297-7405
ND Bar Board ID No. 05084