IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF WISCONSIN
UNITED STATES OF AMERICA,
Plaintiff,
v.
Civil Action No. 00-C-1056
WELLSTON CORPORATION, d/b/a
WELLSTON PROPERTIES,
Defendant.
_________________________________________
Consent Order
The United States, through the U.S. Department of Justice,
Civil Rights Division, Housing and Civil Enforcement Section,
initiated this action pursuant to Section 814 of the Fair Housing
Act, 42 U.S.C. §3601, et seq.
Wellston Corporation, operating under the name of Wellston
Properties (hereafter "Wellston"), manages rental properties
located in Milwaukee, Wisconsin at 3715 S. 75th Street, 3723 S.
75th Street, 3733 S. 75th Street, 3743 75th Street, 7251 W. Tripoli
Avenue, 7301 W. Tripoli Avenue and 7309 W. Tripoli Avenue
(hereafter collectively the "Tripoli Apartments") and at 1579 and
1580 N. Farwell Avenue (hereafter collectively the Brixen
Apartments), and other real estate located in Milwaukee County
consisting of residential rental apartments.
The United States Department of Justice conducted an
investigation to determine Defendant's compliance with the Fair
Housing Act. As part of its investigation, the Department of
Justice and the Metropolitan Milwaukee Fair Housing Council
(hereafter "MMFHC") conducted a series of tests to evaluate the
Defendant's compliance with the Fair Housing Act. Based on those
tests, the United States has alleged that Defendant, by and
through its resident managers, engaged in a pattern or practice
of racial discrimination at the Tripoli and Brixen apartments
located in Milwaukee, Wisconsin, in violation of 42 U.S.C.
§3604(a), (b) and (d), and familial status discrimination at the
Brixen Apartments in violation of 42 U.S.C. §3604(a), (b), (c)
and (d). The United States did not allege that the owners or
officers of Wellston Corporation personally participated in any
alleged act of discrimination.
Wellston Corporation contests these allegations and
expressly denies that any of its employees or agents have engaged
in discrimination based on race, familial status, or any other
unlawful factor, at the Tripoli Apartments, Brixen Apartments, or
any other residential apartment unit under its ownership or
management.
The parties have agreed that, in order to avoid protracted
and costly litigation, this controversy should be resolved
without further litigation. Therefore, without a trial or
adjudication on the merits, and without any admission of
liability by Defendant, the parties have consented to the entry
of this Order.
Therefore, it is ORDERED, ADJUDGED and DECREED as follows:
- Scope and Duration of Consent Order
- The provisions of this Consent Order shall apply to
Defendant, Wellston Corporation, and its employees and agents.(1)
- Except where specified otherwise, and except for
Sections VII and VIII, which provide for compensation of any aggrieved persons and the payment of a civil penalty, the provisions of this Consent Order shall apply to the following
rental properties, which are owned and/or managed in whole or in
part by the Defendant, so long as each such property is owned
and/or managed in whole or in part by the Defendant:
- Tripoli Apartments: 3715, 3723, 3733, and 3743 S.
75th Street, and 7251, 7301, and 7309 W. Tripoli Avenue,
Milwaukee, Wisconsin.
- Brixen Apartments: 1579 and 1580 N. Farwell
Avenue, Milwaukee, Wisconsin.
- 820 and 909 E. Henry Clay, Whitefish Bay, Wisconsin.
- 930 N. Marshall Street, Milwaukee, Wisconsin.
- 1122 and 1130 E. Russell Avenue, Milwaukee,
Wisconsin.
- 1318 N. Van Buren, Milwaukee, Wisconsin.
- 1524 E. Providence, Milwaukee, Wisconsin.
- 1929 and 1931 1st Avenue, Grafton, Wisconsin.
- 2103 E. Kenwood Boulevard, Milwaukee, Wisconsin.
- 2131 and 2260 N. Summit Avenue, Milwaukee, Wisconsin.
- 2424 E. Webster Place, Milwaukee, Wisconsin.
- 2465 N. Frederick Avenue, Milwaukee, Wisconsin.
- 2518 North Lake Drive, Milwaukee, Wisconsin.
- 2555 N. Farwell Avenue, Milwaukee, Wisconsin.
- 2600 E. Capitol Drive, Shorewood, Wisconsin.
- 2600 E. Bradford, Milwaukee, Wisconsin.
- 2611 N. Stowell Avenue, Milwaukee, Wisconsin.
- 2752 and 3220 N. Bartlett Avenue, Milwaukee, Wisconsin.
- 3069, 3237, 3456 and 3553 N. Oakland Avenue,
Milwaukee, Wisconsin.
- 3849 S. 76th Street, Milwaukee, Wisconsin.
- 4573, 5009 and 5017 S. Lake Drive, Cudahy,
Wisconsin.
- 6012 and 6024 W. Cleveland, Milwaukee, Wisconsin
- 6500 W. Howard, Milwaukee, Wisconsin.
- 7745 N. Port Washington, Glendale, Wisconsin.
- 8308 W. North Avenue, Wauwatosa, Wisconsin.
- 12216 W. Bluemound, Milwaukee, Wisconsin.
- This Consent Order is effective immediately upon its
entry by the Court and shall remain in effect for two (2) years
from the date of entry or ninety (90) days after the last report
under Section VI is received, whichever date is later, absent an extension as set forth in Section I.G, provided that the last
payment required by Section VII has been made. If such payment has not been made at that time, the provisions of this Consent
Order shall terminate ten (10) days after the last such payment
is made.
- The Court shall retain jurisdiction over this action
and over the Defendant during the two-year period specified above
to insure compliance with all provisions of this Consent Order.
- The United States may move the Court to extend the
period in which this Consent Order is in effect if it determines
that Defendant likely has violated one or more terms of the Order
or if the interests of justice otherwise require an extension of
the terms of the Order.
- 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 that the Defendant either fails to perform in a timely
manner any act required by this Order or acts in violation of any
provision of this Order, the United States may move the Court to
impose any remedy authorized by law or equity, including, but not
limited to, an order requiring performance or non-performance of
certain acts and an award of any damages, costs, and attorneys'
fees that may have been occasioned by the Defendant's non-action
or actions.
- The parties agree that the time limits set forth
throughout this Consent Order may be expanded upon mutual consent
of the parties.
The Defendant and its agents, employees, and successors are
enjoined, with respect to the rental of dwellings from:
- 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 race, color, or familial status;
- 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 race, color, or familial status;
- 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 race, color, or
familial status;
- Misrepresenting to any person because of race, color,
or familial status that any dwelling unit is not available for
inspection or rental when such dwelling unit is, in fact, so
available; and
- Engaging in any other discriminatory housing practice
prohibited by 42 U.S.C. § 3601, et seq.
- Notice to Public of Nondiscriminatory Policies
Within ten (10) days from the date of entry of this Consent
Order, the Defendant shall take the following steps to notify the
public of their nondiscriminatory policies:
- The Defendant shall prominently post in the rental
office at the apartment complexes identified in I.B., a Fair
Housing sign no smaller than 10 inches by 13 inches that
indicates that all apartments are available for rent on a
nondiscriminatory basis. The sign shall conform with guidance
promulgated by the U.S. Department of Housing and Urban
Development.
- The Defendant shall prominently post in the rental
office at the apartment complexes identified in I.B., a notice of
the Defendant's nondiscriminatory policies, as described in
Sections V and VI of this Consent Order. Copies of this notice shall be made available on request to all persons who inquire about apartments. A notice shall also be posted in each rental
office identified above informing all persons of the availability
of these copies.
- Whenever dwelling units are available at the apartment
complexes listed in Section I.B., the Defendant shall prominently post an easily readable "For Rent" or "Vacancy" sign or notice at the entrance to the complex and in front of the rental office. The sign or notice shall include the slogan "Equal Housing Opportunity" and the fair housing logo.
- The Defendant shall include the words "Equal Housing
Opportunity" and/or the fair housing logo in all advertising
conducted for the apartment complexes listed in I.B. in
newspapers (with the exception of classified advertisements),
telephone directories and other written materials; on radio,
television or other media broadcasts; and on all billboards,
signs, pamphlets, brochures and other promotional literature.
The words and/or logo shall be prominently placed and easily
readable.
- Defendant shall include the following phrase in the
standard rental application and lease used for all of its
apartment complexes, using letters of equal size to those of the
text in the body of the document:
We are an equal housing opportunity provider. We
do not discriminate on the basis of race, color,
sex, national origin, religion, handicap or
familial status (having children under age 18).
- Mandatory Education and Training
- No later than ninety (90) days after entry of this
Order, Defendant's corporate employees directly involved with the
apartment rental process, the individuals named in Exhibit A, and
resident managers of the property complexes identified under
I.B., shall complete an educational program, to be conducted at
the Defendant's expense by the Metropolitan Milwaukee Fair
Housing Council (MMFHC) or other qualified organization approved
by the United States. In the event MMFHC receives a contribution
from Defendant pursuant to VII.G., Defendant may apply those
funds to the cost of such training, including materials. This
education program shall include the following elements:
- Instruction of persons in their duties and
obligations under this order as well as under the federal
Fair Housing Act and applicable state laws;
- Provision of a copy of the federal Fair Housing
Act to each person;
- Instruction on procedures to insure that race,
color, religion, sex, handicap, familial status, or national
origin does not affect the provision of rental information
to inquiring persons or the making of decisions on rental
applications;
- A question and answer session to review each of
the foregoing areas;
- Acquisition from each person attending of a signed
statement conforming to the example in Attachment B
indicating that he or she has received, read, and understood
this Order and the requirements of the Fair Housing Act.
- Certification, by the organization conducting the
educational program, of each attendee's completion of the
program.
- While this Order is in effect, Defendant shall instruct
each resident manager not trained under IV.A. regarding its
corporate non-discrimination policy and procedures and the
requirements of this Order and the Fair Housing Act. Defendant
shall also provide each such resident manager or other covered
employee with a copy of its corporate policy and procedures
manual, this Order, and the Fair Housing Act, and obtain from
each a signed statement confirming that such instruction has been
received and that the individual understands his/her obligations.
The requirements of this subparagraph IV.B. shall be met within
ninety (90) days of each such individuals' start date.
- Standards for Accepting and Processing Applications
No later than ten (10) days after entry of this Order, the
Defendant shall, for the properties identified in Section I.B.:
- Keep a list of the dwellings known or expected
soon to be available for rental, including for each the
address or apartment number, number of bedrooms, monthly
rent, and availability date;
- Keep, in chronological order by date and time of
inquiry, a waiting list of persons who inquire about renting
dwellings and who request to be placed on such a list. The
list shall include the person's name, current address,
telephone number(s), a description of the dwelling desired
(e.g., number of bedrooms), the date the person is added to
the list, and the requested move-in date. When a dwelling
of the type sought becomes available for rent, the Defendant
shall make a good faith effort to contact each person on the
waiting list for that building by telephone and/or mail to
advise them of the vacancy. The Defendant shall note on the
list the date and time of each attempt to reach persons on
the list. The obligation to notify individuals on the list
shall expire (1) forty-five (45) days after the requested
move-in date for each person on the list, (2) upon being
advised that the person on the list is no longer interested
in renting at that location; or (3) upon rejection of
applicant by Defendant for any lawful reason, whichever
occurs first.
- Inform everyone who inquires about dwellings of
all available units meeting their requirements, and, if none
are available, give them an opportunity to have their names
placed on the waiting list; and,
- Give everyone who inquires about dwellings an
opportunity to complete a written rental application and
have their names placed on the waiting list.
- Record Keeping and Monitoring
- Defendant shall keep the following records
relating to its rental properties:
- A list of expected and actual dwelling
vacancies, updated as information becomes available to
indicate each dwelling known to be, or expected within
30 days to become, available for rent, indicating the
number of bedrooms, monthly rent (including any rent
special and/or other discounts), the date the Defendant
learned it would be available for rent, and the date on
which it is expected to be available for occupancy by a
new tenant. Updates shall be made without loss of
previously recorded information.
- A copy of all applications submitted, a
record of the building and unit number for all approved
applicants, and a written statement of explanation for
all rejected applicants. Wellston's application form
will include a space for each person to record their
race. The application form will further include the
following statement: "The following information is
requested to allow us to comply with the federal Fair
Housing Act and will be kept confidential. Providing
information on your race is voluntary and is not
required in order to rent an apartment."
- No later than ninety (90) days after entry of this
Order, the Defendant shall deliver to counsel for the United
States(2) the following documents:
- Copies of all written verifications of
training required under Section IV of this Order;
- A report based on good faith observation
detailing the occupancy of each dwelling unit at the
subject properties, if known, by race of occupant(s) as
of the date of entry of this Order; and
- A photograph of each office or apartment in
which rental or sales activity is conducted showing the
fair housing signs required by Section III.A & B of
this order.
- No later than six (6) months after entry of this
Order, and every six (6) months thereafter while it is in
effect, Defendant shall deliver to counsel for the United
States a report covering the preceding six months containing
information about the Defendant's compliance efforts,
including but not limited to:
- Copies of mandatory education acknowledgments
signed by the Defendant's new agents and employees
pursuant to Section IV.B.;
- Copies of certifications of attendance, if
any, pursuant to Section IV.B.;
- Copies of availability lists, rental
application logs, and waiting lists maintained pursuant
to Section V; and
- A list setting forth the occupancy of each
dwelling unit at the subject properties by race of
occupant(s) and indicating the number of occupants
under the age of 18 years as of the close of the
reporting period.
- While this Order is in effect, the Defendant shall
preserve all records that are the source of, contain, or
relate to any of the information pertinent to their
obligations under this Order, including all rental
applications, leases, and occupancy lists for dwellings at
the subject properties. Upon reasonable notice to counsel
for the Defendant, representatives of the United States,
during normal business hours, shall be permitted to inspect
and, at government expense, copy these records.
- If, while this Consent Order is in effect, any
person or organization complains that they have been denied
equal housing opportunity at the subject properties or that
Defendant has committed housing discrimination, the
Defendant shall so notify counsel for the United States in
writing no later than 15 days after they learn of the
complaint. If the complaint is written, the Defendant shall
provide a copy of it with the notification; if the complaint
is oral, the Defendant shall include a written summary of it
with the notification. The notification shall include the
full details of the complaint, including the complainant's
name, address, and telephone number. The Defendant shall
also promptly provide the United States all information it
may request concerning any such complaint and its actual or
attempted resolution. If, while this Order is in effect, the
United States receives any such complaint, the United States
shall confer with Defendant, as provided in I.F., prior to
taking Court action
- Compensation of Aggrieved Persons
- No later than 90 business days after entry of this
order the Defendant shall deposit in an interest-bearing
account held in trust by counsel for the Defendant the sum
of $50,000 for the purpose of compensating any aggrieved
persons who may have been the victims of the discriminatory
housing practices at the Brixen Apartments or Tripoli
Apartments, for any injury they may have suffered (including
personal injury, whether emotional or physical), identified
through the procedures set forth in this section.
- At least every week during the four-week period
commencing no later than 45 days following the entry of this
Consent Order, including on at least three Sundays, the
defendants shall publish a notice to potential victims of
housing discrimination that conforms to the notice at
Attachment D. Each notice shall appear in the news sections
of the Milwaukee Journal-Sentinel and the Milwaukee
Community Journal. The notices in the Journal-Sentinel shall
cover at least one-eighth of a page, and the notices in the
Community Journal shall cover at least one-quarter of a
page. The Defendant shall send a copy of the newspaper
containing each notice to counsel for the United States no
later than five days after its publication. Defendant shall
also make written notification to counsel for the United
States of the date on which the last notices were published
in each newspaper, no later than five days after such
publication.
- The Defendant shall produce or permit
representatives of the United States to review any records
that the United States believes may help it identify persons
who may be entitled to relief under this order. Upon
reasonable notice to counsel for the Defendant, representatives of the United States, during normal business hours,
shall be permitted to inspect and, at government expense,
copy these records.
- Allegedly aggrieved persons shall have 90 days
from the date of the last published notice in which to
contact the United States to assert any claims in connection
with this order.
- No later than 180 days after publication of the
last notice, the United States shall determine which persons
who have timely contacted the United States are likely to
have been victims of the discriminatory housing practices at
the subject properties and shall, in its sole discretion,
determine the amount of damages to be awarded to each
person, provided that:
- No person shall be paid until he or she has
executed a sworn statement verifying his/her claim and
a written release (conforming to that at Attachment C)
of all claims, legal or equitable, that he or she might
have against the Defendant or its agents as relating to
the claims asserted in this lawsuit; and
- The total amount to be paid by the Defendant
pursuant to this subsection shall not exceed $50,000
plus accumulated interest.
- The United States shall notify the Defendant in
writing of its determinations, with a copy of the supporting
statement. No later than 30 days after receiving this
notification, the Defendant shall deliver to counsel for the
United States checks for the identified, aggrieved persons
made payable as directed in the written notification.
Counsel for the United States shall not give an aggrieved
person his or her check until he or she has given the United
States his or her executed release of claims in the form of
Attachment C.
- If the United States distributes less than the
total amount of compensation available, as specified above,
the remainder shall be paid to one or more organizations
approved by the United States to further fair housing in the
Milwaukee area. The names and functions of the prospective
organizations shall be identified by Wellston in writing and
provided to counsel for the United States no later than
thirty days from the entry of this consent order.
- Payment to the United States
No later than thirty (30) days after the entry of this
Order, the Defendant shall pay the sum of $10,000 to the United
States pursuant to 42 U.S.C. 3614(d)(1)(C). This payment shall
be delivered to counsel for the United States in the form of a
cashier's check payable to the "United States Department of
Justice."
In the event that the defendant is found to violate the Fair
Housing Act, such violation(s) shall constitute a "subsequent"
violation pursuant to 42 U.S.C. § 3614(d).
ORDERED this _________ day of ____________________________, 2000.
UNITED STATES DISTRICT JUDGE
The undersigned agree to and request the entry of this
Order:
For the United States:
Isabelee M. Thabault
Deputy Chief
Michael L. Barrett
Attorney
U.S. Department of Justice
Civil Rights Division
Housing and Civil Enforcement Section
P.O. Box 65998
Washington, D.C. 20035-5998
(202) 514-2447
Thomas P. Schneider
United States Attorney
Francis D. Schmitz
Civil Chief
517 E. Wisconsin Street
Room 530
Milwaukee, Wisconsin 53202
(414) 297-1700
For the Defendant,
Wellston Corporation, d/b/a Wellston Properties:
________________________
ATTACHMENT A
I understand that, as an employee and/or agent of Wellston
Corporation, I am bound by the requirements of this Order. I
have received copies of and have read the Order and the federal
Fair Housing Act. I understand my legal responsibilities and
will comply with those responsibilities. I further understand
that the Court may impose sanctions on me if I violate a
provision of the Order and that my employer may also impose
sanctions on me, including dismissal, if I violate a provision of
the Order.
I have been informed by my employer that I will not be
reprimanded by my employer for providing truthful information to
any law enforcement agency (including the United States
Department of Justice, Civil Rights Division, Housing and Civil
Enforcement Section, P.O. Box 65998, Washington, D.C. 20035-5998,
telephone 1-202-514-4713 or 1-800-896-7743) or official regarding
my employer's compliance with the Fair Housing Act and/or this
Order.
___________________________
MARY THIEMER
_____/______/_______
Date Signeded
___________________________
JERRY BRAUNREITER
_____/______/_______
Date Signeded
ATTACHMENT B
On __________________________, _____, I was instructed by _______________________________ with respect to my
responsibilities under the Order entered by the federal district
court in United States of America v. Wellston Corporation, d/b/a
Wellston Properties, Case No._______ (E.D.Wis.), the federal Fair
Housing Act, and applicable state laws. I also was instructed on
Wellston Corporation's non-discrimination policy and fair housing
procedures. I have received copies of and have read the Order
and the federal Fair Housing Act. I understand my legal
responsibilities and will comply with those responsibilities.
I have been informed by my employer that I will not be
reprimanded by my employer for providing truthful information to
any law enforcement agency (including the United States
Department of Justice, Civil Rights Division, Housing and Civil
Enforcement Section, P.O. Box 65998, Washington, D.C. 20035-5998,
telephone 1-202-514-4713 or 1-800-896-7743) or official regarding
my employer's compliance with the Fair Housing Act and/or this
Order.
____________________________
Signature
____________________________
Name Printed
____________________________
Date Signed
ATTACHMENT C
RELEASE
In consideration for the parties' agreement to the terms of
the Order entered in United States of America v. Wellston
Properties, Inc., Case No.___________ (E.D. Wis.) and the
Defendant's payment to me [and my spouse jointly] of
$__________________________, I hereby release and forever discharge all
claims related to the facts at issue in the litigation referenced
above, or in any way related to that litigation, and any other
claims arising from alleged housing discrimination up to and
including the date of execution of this release, that I may have
against any of the Defendant, its officers, employees, agents,
successors, and/or assigns.
I understand and acknowledge that the payment made by
Defendant hereunder does not constitute, and shall not be
construed as, an admission of any kind, and that Defendant has
expressly denied liability.
I declare under penalty of perjury that the foregoing is
true and correct.
____________________________
Signature
____________________________
Name Printed
____________________________
Date Signed
ATTACHMENT D
NOTICE TO POTENTIAL VICTIMS OF DISCRIMINATION AT
THE BRIXEN AND TRIPOLI APARTMENTS
On ____________________________________, 2000, the United States
District Court for the Eastern District of Wisconsin entered an
Order resolving a lawsuit brought by the United States Department
of Justice alleging unlawful housing discrimination by the
managers of the Brixen Apartments, located at 1579 and 1580 N.
Farwell Avenue, and the Tripoli Apartments, located at 3715 S.
75th Street, 3723 S. 75th Street, 3733 S. 75th Street, 3743 75th
Street, 7251 W. Tripoli Avenue, 7301 W. Tripoli Avenue and 7309
W. Tripoli Avenue. The lawsuit alleged that the Tripoli
Apartments discriminated against black persons who sought rental
housing and that the Brixen Apartments discriminated against
families with children. The suit did not allege that the owners
or officers of Wellston Corporation personally participated in
any alleged act of discrimination.
Under this Order, you may be entitled to receive monetary
relief if you asked about or applied for renting, or rented, an
apartment at the Brixen Apartments or the Tripoli Apartments and:
- At the Tripoli: You were denied an opportunity to live
at, were falsely told that no apartments were available
at, or were otherwise discriminated against in
connection with your occupancy or your attempt to rent
a unit at, the Tripoli Apartments on the basis of your
race or color or the race or color of someone who would
be living with you.
- At the Brixen: You were denied an opportunity to live
at, were falsely told that no apartments were available
at, or were otherwise discriminated against in
connection with your occupancy or your attempt to rent
a unit at, the Brixen Apartments because your family
consisted of one or more children under the age of 18.
If you believe any of the above circumstances apply to you
or if you have any information about persons who may have been
discriminated against on the basis of race, color, or familial
status, please contact the United States Department of Justice at
1-800-896-7743. You may also write to:
United States Department of Justice
Civil Rights Division
Housing and Civil Enforcement Section
P.O. Box 65998
Washington, D.C. 20035-5998.
NOTE: You must call or write no later than ninety (90) days
from [insert date of publication of last required advertisement].
1. These agents include the individuals named in the
Complaint, who, although covered by this settlement, are not made
party to the Consent Decree. By signing Attachment A, these
individuals have acknowledged their legal obligations, as agents
of Wellston, under the terms of this Decree.
2. All documents or other communications required by this
order to be sent to counsel for the United States shall be
addressed as follows: Chief, Housing and Civil Enforcement
Section, Civil Rights Division, United States Department of
Justice, P.O. Box 65998, Washington, D.C. 20035-5998.