LANDMARK: Landlords Agree to Largest-Ever DOJ Rental Housing Discrimination Settlement

The U.S. Department of Justice (DOJ) announced it filed a proposed consent order to obtain the largest-ever settlement in connection with a rental housing discrimination lawsuit.

Los Angeles Clippers owner and landlord Donald Sterling, his wife Rochelle Sterling, the Sterling Family Trust, and The Korean Land Company, L.L.C. have agreed, without admitting liability or wrongdoing, to pay $2.725 million to settle allegations that they violated the Fair Housing Act by discriminating based on race, national origin, and familial status at apartment buildings they own and manage in Los Angeles.

The complaint, filed in August 2006, alleged that the defendants discriminated against non-Korean prospects and tenants in connection with renting apartments in the Koreatown section of Los Angeles; discriminated against black prospects and tenants in connection with renting apartments in the Beverly Hills section of Los Angeles; and discriminated against families with children throughout the buildings they own or manage in Los Angeles.

In addition to the record monetary award and civil penalty, the consent order, if approved, would require the defendants to obtain fair housing training for employees and monitor their compliance, and maintain non-discriminatory practices and procedures.

The defendants own and manage approximately 119 apartment buildings comprising 5,706 apartments in Los Angeles County. This settlement would also resolve two related lawsuits filed by former tenants at one of their properties.