IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
United States of America,
Plaintiff,
v.
CIVIL ACTION NO. 3:99-CV-0495-R
Prestonwood Properties, Inc.;
Stillmeadow Property
Management, Inc.;
Kevin Lane Hinds, also
known as Kevin Layne:
Hinds, individually and in his
capacity as officer of
Stillmeadow;
Ronald D. Hinds, individually
and in his capacity as officer
of Prestonwood;
Leslie Hinds, individually and
in his capacity as officer of
Prestonwood,
Defendants.
______________________________
COMPLAINT
The United States of America alleges:
This action is brought by the United States to enforce
the Fair Housing Act, Title VIII of the Civil Rights Act of 1968,
as amended by the Fair Housing Amendments Act of 1988, 42 U.S.C.
§§ 3601 - 3619.
- This Court has jurisdiction over this action under
28 U.S.C. § 1345, 42 U.S.C. § 3612, and 42 U.S.C. § 3614.
- Venue is proper under 28 U.S.C. § 1391(b) because all
Defendants reside in Texas, and Defendants Kevin Layne Hinds and
Ronald D. Hinds reside in the Northern District of Texas.
- "Manor House" is residential rental property at 703
Bumpas Street, McKinney, Texas, 75069 that was owned and/or
managed by Defendants at all relevant times. The property and
approximately 100 apartments at Manor House are dwellings within
the meaning of 42 U.S.C. § 3602(b). At all relevant times, the
Manor House apartments were subsidized by the Department of
Housing and Urban Development under the Section 8 program, and
the units were occupied by low-income persons.
- Defendant Prestonwood Properties, Inc., ("Prestonwood")
is a Texas corporation that on or about December 2, 1988, doing
business as Manor House Apartments, purchased Manor House.
Prestonwood was the owner of Manor House until at least June 6,
1995, when Prestonwood lost Manor House through foreclosure.
- Defendant Stillmeadow Property Management, Inc.,
("Stillmeadow") is a Texas corporation that, for the period of
approximately mid-1989 through at least July 31, 1994, managed
Manor House through a contractual agreement with Prestonwood.
- Defendant Ronald D. Hinds ("Ronald Hinds") is an
attorney and member of the Texas bar. Ronald Hinds resides as
965 Gibbs Crossing, Coppell, Texas, 75019. At all relevant
times, Ronald Hinds was Prestonwood's president and one of
Prestonwood's two shareholders. At all relevant times, Ronald
Hinds served as counsel for Prestonwood and Stillmeadow. Ronald
Hinds is the brother of Defendant Kevin Hinds and the son of
Defendant Leslie Hinds.
- Defendant Leslie R. Hinds ("Leslie Hinds") is a
resident of Midland, Texas. At all relevant times, Leslie Hinds
was Prestonwood's vice president and one of Prestonwood's two
shareholders. Leslie Hinds is the father of Defendant Kevin
Hinds and Defendant Ronald Hinds.
- Defendant Kevin Layne Hinds, also known as Kevin Layne:
Hinds, ("Kevin Hinds") resides at 418 Sheffield Drive,
Richardson, Texas. At all relevant times, Kevin Hinds was the
president, sole shareholder, and business manager for
Stillmeadow. Kevin Hinds is the son of Defendant Leslie R. Hinds
and brother of Defendant Ronald D. Hinds.
- FACTUAL AND LEGAL BACKGROUND
- In approximately mid-1989, Defendants Prestonwood,
Ronald Hinds, and Leslie Hinds entered into an agreement with
Defendants Stillmeadow and Kevin Hinds whereby Stillmeadow and
Kevin Hinds would manage Manor House. From approximately mid-1989
until at least July 31, 1994, Stillmeadow and Kevin Hinds
managed Manor House pursuant to this agreement on behalf of
Defendants Prestonwood, Ronald Hinds, and Leslie Hinds.
- Wayne Asset Management, Inc., formerly known as Sunrise
Asset Management, Inc., ("Wayne Asset Management") is a Texas
corporation incorporated in approximately 1994 with a principal
place of business in San Antonio. At all relevant times,
Herschel Wayne Feazel Jr. ("Mr. Feazel, Jr.") was president of
Wayne Asset Management, Inc., and one of its two shareholders,
and Herschel Wayne Feazel Sr. ("Mr. Feazel, Sr.") was vice-president and the other shareholder.
- On approximately July 31, 1994, Prestonwood entered
into a contract with Wayne Asset Management under which Wayne
Asset Management would manage certain aspects of Manor House,
effective approximately August 14, 1994. Despite this contract,
Defendants Prestonwood, Ronald Hinds, and Leslie Hinds
specifically instructed Wayne Asset Management, Mr. Feazel Sr.
and Mr. Feazel Jr. that Kevin Hinds would continue to have
ultimate decision making authority for Manor House on behalf of
Defendants Prestonwood, Ronald Hinds, and Leslie Hinds.
Defendant Kevin Hinds continued to control management of Manor
House pursuant to this authority through at least June 5, 1996.
IV. FIRST CLAIM FOR RELIEF
- Plaintiff realleges and herein incorporates by
reference the allegations set forth in paragraphs 1 through 12
above.
- On or about March 8, 1995, complainants Mary Jackson,
Vicky Lucero (formerly known as Vicky Monteldo), Virginia
Carrasco (formerly known as Virginia Lewallen), and Citronella
Goodman, on behalf of herself and her children Erica LaShawn
Johnson and Mariah Marques Goodman, submitted to the Secretary of
Housing and Urban Development ("the Secretary") complaints
alleging housing discrimination on the basis of sex. These
complaints, filed pursuant to 42 U.S.C. § 3610(a), allege that
Kevin Hinds had sexually harassed the complainants during their
respective tenancies at Manor House.
- On or about June 1, 1995, complainant Jimmie Sue Davis,
who had worked in the Manor House office from approximately
November 15, 1994 until approximately March 15, 1995, filed a
complaint with the Secretary, alleging that Kevin Hinds had
terminated her employment because she had assisted the
complainants identified in paragraph 14 and other persons in
exercising their rights under the Fair Housing Act, in violation
of 42 U.S.C. § 3617.
- Pursuant to the requirements of 42 U.S.C. §§ 3610(a)
and (b), the Secretary conducted an investigation of the
complaints, attempted conciliation without success, and prepared
a final investigative report. Based on the information gathered
in that investigation, the Secretary, pursuant to 42 U.S.C.
§ 3610(g)(1), determined that reasonable cause exists to believe
that discriminatory housing practices occurred. Therefore, on
October 30, 1998, the Secretary issued a Determination of
Reasonable Cause and Charge of Discrimination pursuant to
42 U.S.C. § 3610(g)(2)(A), charging Defendants Stillmeadow, Kevin
Hinds, Prestonwood, Ronald Hinds, and Leslie Hinds with engaging
in discriminatory housing practices in violation of the Fair
Housing Act.
- On or about November 24, 1998, Defendants Ronald Hinds,
Leslie Hinds, and Prestonwood elected to have the charge resolved
in a federal civil action pursuant to Section 812(a) of the Fair
Housing Act, 42 U.S.C. § 3612(a).
- On or about November 30, 1998, the Secretary authorized
the Attorney General to commence a civil action on behalf of the
complainants, pursuant to Section 812(o) of the Fair Housing Act,
42 U.S.C. § 3612(o).
- Defendants Prestonwood, Stillmeadow, Ronald Hinds,
Leslie Hinds, and Kevin Hinds have discriminated against the
complainants identified in paragraph 14 on the basis of sex in
connection with the rental of dwellings in violation of the Fair
Housing Act. Specifically, Kevin Hinds subjected the
complainants to extensive, continuous, unwelcome, and uninvited
sexual harassment; conditioned tenancy on compliance with sexual
favors; created a hostile environment for complainants; and
intimidated complainants from reporting his acts to the police
and the Secretary, and from pursuing other avenues of legal
redress. Among other acts, Defendant Kevin Hinds engaged in one
or more of the following acts with respect to each complainant:
- touching in a sexually suggestive way;
- engaging in sexual assaults;
- making repeated and unwelcome sexual comments, sexual
propositions, and sexual advances;
- refusing to make repairs, imposing rent increases,
issuing citations for minor or nonexistent lease violations,
making insulting and publicly humiliating remarks;
- threatening and/or instituting eviction actions without
cause in retaliation for declining sexual advances; and
- with respect to Jimmie Sue Davis, terminating or causing
her to be terminated from her employment at Manor House because
she opposed Kevin Hinds' discriminatory conduct and assisted
other women in reporting Defendant Kevin Hinds' conduct to the
Secretary.
- The discriminatory practices described above resulted
in the actual eviction and/or constructive eviction of one or
more complainants from their dwellings, thereby making the
dwellings unavailable to them because of their sex in violation
of Section 804(a) of the Fair Housing Act, 42 U.S.C. § 3604(a).
- The conduct described above, creating a hostile and
abusive environment for complainants and conditioning tenancy
upon the acceptance of sexual harassment and performance of
sexual favors, constitutes a violation of Section 804(b) of the
Fair Housing Act, 42 U.S.C. § 3604(b).
- The conduct described above, including propositioning
and demanding sexual favors from complainants, constitutes a
violation of Section 804(c) of the Fair Housing Act, 42 U.S.C. §
3604(c).
- The conduct described above of coercing, intimidating,
threatening, and/or interfering with complainants in their
exercise or enjoyment of rights granted by Section 804 of the
Fair Housing Act, as amended, constitutes a violation of Section
818 of the Fair Housing Act, 42 U.S.C. § 3617.
- Defendants Ronald Hinds, Leslie Hinds, and Prestonwood
knew or should have known of the discriminatory conduct of
Defendants Kevin Hinds and Stillmeadow but refused to take action
to curtail and/or prevent the discriminatory conduct, in
violation of Sections 804(a), 804(b), 804(c), and 818 of the Fair
Housing Act, 42 U.S.C. §§ 3604(a),(b),(c) and 3617.
- Mary Jackson, Vicky Lucero, Citronella Goodman,
Virginia Carrasco, and Jimmie Sue Davis are aggrieved persons as
defined in Section 802(i) of the Fair Housing Act, 42 U.S.C.
§ 3602(i). They have suffered damages as a result of Defendants'
conduct as described herein.
- The conduct of Defendants Kevin Hinds and Stillmeadow
described herein was intentional, willful, and taken in disregard
for the rights of Mary Jackson, Vicky Lucero, Citronella Goodman,
Virginia Carrasco, and Jimmie Sue Davis.
-
- the conduct of Defendants Prestonwood, Ronald
Hinds, and Leslie Hinds, as described herein, was intentional,
willful, and taken in disregard for the rights of Mary Jackson,
Vicky Lucero, Citronella Goodman, Virginia Carrasco, and Jimmie
Sue Davis.
- Alternatively, the conduct of Defendants
Prestonwood, Ronald Hinds, and Leslie Hinds, as described herein,
was negligent with respect to Mary Jackson, Vicky Lucero,
Citronella Goodman, Virginia Carrasco, and Jimmie Sue Davis
because these Defendants knew or should have known about the
harassment and failed to stop it; because these Defendants failed
to prevent or correct the harassment; and because these
Defendants failed to exercise reasonable care in training,
hiring, education, and supervision of Manor House staff.
V. SECOND CLAIM FOR RELIEF
- Plaintiff realleges and herein incorporates by
reference the allegations set forth in paragraphs 1 through 27
above.
- Defendants Prestonwood, Stillmeadow, Ronald Hinds,
Leslie Hinds, and Kevin Hinds have discriminated not only against
the complainants identified in paragraph 14 but also against
other female tenants on the basis of sex in connection with the
rental of dwellings in violation of the Fair Housing Act.
Specifically, Defendant Kevin Hinds subjected other female
tenants to extensive, continuous, unwelcome, and uninvited sexual
harassment; conditioned tenancy on compliance with sexual favors;
created a hostile environment for female tenants; and intimidated
female tenants from reporting his acts to the police and the
Secretary, and from pursuing other avenues of legal redress.
Among other acts, Defendant Kevin Hinds engaged in one or more of
the following acts with respect to other female tenants:
- touching in a sexually suggestive way;
- engaging in sexual assaults;
- making repeated and unwelcome sexual comments, sexual
propositions, and sexual advances;
- refusing to make repairs, imposing rent increases,
issuing citations for minor or nonexistent lease violations,
making insulting and publicly humiliating remarks; and
- threatening and/or instituting eviction actions without
cause in retaliation for declining sexual advances.
- The discriminatory practices described above resulted
in the actual eviction and/or constructive eviction of one or
more other female tenants from their dwellings, thereby making
the dwellings unavailable to them because of their sex in
violation of Section 804(a) of the Fair Housing Act, 42 U.S.C.
§ 3604(a).
- The conduct described above, creating a hostile and
abusive environment for other female tenants and conditioning
tenancy upon the acceptance of sexual harassment and performance
of sexual favors, constitutes a violation of Section 804(b) of
the Fair Housing Act, 42 U.S.C. § 3604(b).
- The conduct described above, including propositioning
and demanding sexual favors from other female tenants,
constitutes a violation of Section 804(c) of the Fair Housing
Act, 42 U.S.C. § 3604(c).
- The conduct described above of coercing, intimidating,
threatening, and/or interfering with other female tenants in
their exercise or enjoyment of rights granted by Section 804 of
the Fair Housing Act, as amended, constitutes a violation of
Section 818 of the Fair Housing Act, 42 U.S.C. § 3617.
- Defendants Ronald Hinds, Leslie Hinds, and Prestonwood
knew or should have known of the discriminatory conduct of
Defendants Kevin Hinds and Stillmeadow but refused to take action
to curtail and/or prevent the discriminatory conduct, in
violation of Sections 804(a), 804(b), 804(c), and 818 of the Fair
Housing Act, 42 U.S.C. §§ 3604(a),(b),(c) and 3617.
- The conduct of the Defendants described above with
regard to the complainants identified in paragraph 14 and with
regard to other female tenants constitutes:
- A pattern or practice of resistance to the full
enjoyment of rights granted by the Fair Housing Act,
42 U.S.C. § 3614(a); and/or
- A denial to a group of persons of rights granted by the
Fair Housing Act, which denial raises an issue of
general public importance under Section 814(a),
42 U.S.C. § 3614(a).
- The complainants identified in paragraph 14 and other
female tenants who were subjected to Defendants' discriminatory
housing practices are aggrieved persons as defined in Section
802(i) of the Fair Housing Act, 42 U.S.C. § 3602(i) who suffered
actual injury and damages as a result of Defendants' conduct as
described herein.
- The conduct of Defendants Kevin Hinds and Stillmeadow,
as described herein, was intentional, willful, and taken in
disregard for the rights of others.
-
- The conduct of Defendants Prestonwood, Ronald
Hinds, and Leslie Hinds, as described herein, was intentional,
willful, and taken in disregard for the rights of others.
- Alternatively, the conduct of Defendants
Prestonwood, Ronald Hinds, and Leslie Hinds, as described herein,
was negligent because these Defendants knew or should have known
about the harassment and failed to stop it; because these
Defendants failed to prevent or correct the harassment; and
because these Defendants failed to exercise reasonable care in
training, hiring, education, and supervision of Manor House
staff.
WHEREFORE, the United States prays that the Court enter an
order that:
- Declares that Defendants' policies and practices, as
alleged herein, 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 them from:
- Discriminating on the basis of sex against any person
in any aspect of the rental of a dwelling.
- Interfering with or threatening to take any action
against any person in the exercise or enjoyment of
rights granted or protected by the Fair Housing Act, as
amended; and
- Failing or refusing to take such affirmative steps as
may be necessary to (1) restore, as nearly as
practicable, the victims of the Defendants' past
unlawful practices to the position they would have been
in but for the discriminatory conduct; and (2) notify
residents of their rental properties as well as the
public that the properties will be operated in a manner
so as not to discriminate on the basis of sex;
- Awards such damages as would fully compensate Mary
Jackson, Vicky Lucero, Citronella Goodman, Virginia Carrasco, and
Jimmie Sue Davis, and each other person aggrieved by Defendants'
discriminatory housing practices for injuries caused by the
Defendants' discriminatory conduct, pursuant to Section
814(d)(1)(B) of the Fair Housing Act, 42 U.S.C. § 3614(d)(1)(B);
- Awards punitive damages to Mary Jackson, Vicky Lucero,
Citronella Goodman, Virginia Carrasco, and Jimmie Sue Davis, and
each other person aggrieved by Defendants' discriminatory housing
practices, pursuant to Section 812(o)(3) and 814(d)(1)(B) of the
Fair Housing Act, 42 U.S.C. §§ 3612(o)(3) and 3614(d)(1)(B); and
- Assesses a civil penalty against each Defendant in
order to vindicate the public interest, pursuant to Section
814(d)(1)(C) of the Fair Housing Act, 42 U.S.C. § 3614(d)(1)(C).
The United States further prays for such additional relief
as the interests of justice may require.
JANET RENO
Attorney General
BILL LANN LEE
Acting Assistant Attorny General
Civil Rights Division
JOAN A. MAGAGNA
Chief, Housing and Civil Enforcement Section
BRIAN F. HEFFERNAN
CLAY G. GUTHRIDGE
ELIZABETH O. TUCCI
Attorneys, Housing and Civil Enforcement Section
Civil Rights Division
Department of Justice
P.O. Box 65998
Washington, D.C. 20035-5998
Tel.: (202) 353-9707
PAUL COGGINS
United States Attorney
Northern District of Texas