Legal
Real Estate Broker Beneficiary of Largest Housing Discrimination Verdict Obtained by United States Justice Departmentby Robert D. Butters
On October 27, 1993, a federal jury in Orlando, Florida awarded $390,500 against the Windmill Pointe Village Club Association in a case brought under the Federal Fair Housing Act. The plaintiffs sued the Association alleging that it engaged in discrimination against families with children because the Association's rules prohibited occupancy in any of the 336 homes in the Village by anyone under the age of 16.
The plaintiffs included a real estate broker who alleged that she lost commission income because she could not sell homes in the development to buyers who had children under 16 years old. The broker eventually sold her business because of her inability to list or sell property in the Windmill Pointe Village and surrounding developments. The jury awarded the broker $200,000 in compensatory damages for the loss of income and another $110,000 in punitive damages.
The jury also awarded $50,000 in compensatory and punitive damages to a Windmill Pointe resident and her adult daughter. The daughter had been prohibited from residing with her mother because of the daughter's young child. Of the $50,000 in damages awarded to the resident and her daughter, $40,000 represented emotional distress.
The jury further awarded $10,000 in compensatory damages and $20,500 in punitive damages to three other Windmill Pointe residents. One resident was told in writing that his grandson could no longer live with him. Two other residents had verbal confrontations with the Association's directors.
The case was filed in federal court by the Justice Department after HUD investigated a charge of discrimination filed by the real estate broker and concluded that a reasonable basis existed to believe that the Village violated the Fair Housing Law. The Village defended the case by claiming that it was entitled to the "older person" exemption from the family status protection of the Fair Housing Law because it required at least one person over 55 years old to reside in every home, and the Village allegedly provided significant facilities designed to meet the needs of older persons. The court concluded that the Village did not satisfy the prerequisites for the "older person" exemption.
This case demonstrates the increasing willingness of federal juries to award substantial damages, including punitive damages, in fair housing cases. But the case also demonstrates that real estate brokers and agents have standing to sue and collect significant damage awards if they can show that the defendant's conduct has resulted in a loss of income to the broker. Brokers should keep this case in mind when they confront sellers or landlords who refuse to accept offers to sell or rent because of the buyer's or tenant's race, religion, sex, national origin or other criteria prohibited by federal, state or local fair housing laws.
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Robert D..Butters. All right reserved. For information contact Frog Pond at 800.704.FROG(3764) or email susie@frogpond.com.
