United States v. Scott

809 F. Supp. 1404, 1992 U.S. Dist. LEXIS 20431, 1992 WL 395600
District Court, D. Kansas·Decided December 8, 1992·No. Civ. A. 90-1374-FGT·Published·Cited by 6 cases

Opinion

OPINION AND ORDER

THEIS, District Judge.

The United States brought this action on behalf of Donald and Patricia Haberer, sellers of a residential property, alleging violations of the Fair Housing Act, 42 U.S.C. *1406 § 3601 et seq. The United States alleged that the defendants, who are homeowners in the Larmer Addition of the City of Russell, Kansas, violated several provisions of the Fair Housing Act by actions they took in 1989. The United States alleged that these actions, which included the filing of a lawsuit in the District Court of Russell County, Kansas (Scott, et al. v. Haberer, C.A. No. 89-0103), interfered with the Haberers’ right to sell their home to Developmental Services of Northwest Kansas (DSNWK), an organization which operates group homes for physically and mentally handicapped individuals.

In a previous opinion and order, the court granted the United States’ motion for partial summary judgment on the issue of liability. 788 F.Supp. 1555 (D.Kan.1992). In that order, the court found that the Haberers were “aggrieved persons” within the meaning of the Fair Housing Act, 42 U.S.C. § 3602(i)(1). The court held that by attempting to block the sale of the Haberer home to DSNWK because of the handicaps of the prospective residents, the defendants had violated several provisions of the Fair Housing Act. See 788 F.Supp. at 1562. The court will not repeat the facts found nor the discussion of the general principles of law contained in the previous opinion, but incorporates them by reference here.

This matter was tried to the court on November 23, 1992, on the issue of the appropriate relief for defendants’ violations of the Fair Housing Act. Prior to trial, the United States settled its claims on behalf of the Haberers with four of the defendants, Kenneth Lahmann, Olive Davisson, Dean Zimmerman and Helen Zimmerman. The names of the remaining twenty-seven (27) defendants are reflected in the case caption. The limited issues for resolution by the court are the amount of actual damages suffered by the Haberers, the amount of punitive damages, if any, to be assessed against the defendants, and the propriety of injunctive relief against further violations of the Fair Housing Act. After considering the matters presented at trial, the court now makes the following findings of fact and conclusions of law.

I. Damages

In a civil enforcement action brought by the United States on behalf of aggrieved individuals such as the Haberers, the court may grant the same relief which could be granted in a private enforcement action. That relief shall accrue to the aggrieved individuals. See 42 U.S.C. § 3612(o)(3). That relief includes actual and punitive damages. Id. § 3613(c)(1).

A. Actual Damages

The court finds by a preponderance of the evidence, after hearing the witnesses and evaluating their credibility and after examining the documentary exhibits in evidence, that the following items of actual damages have been proved:

Additional Interest on Home Mortgage $223.35 (Exh. 1)
Additional Real Estate Taxes 227.70 (Exh. 4)
Lost Interest Income 704.11 (Exh. 5)
Legal Fees Incurred 919.00 (stipulated)
Miscellaneous Legal Costs 137.04 (stipulated)
Time Spent of Assertion of Rights
Donald Haberer 750.00 (Exh. 10)
Patricia Haberer 370.88 (Exh. 13)

Additionally, Donald Haberer claimed a crop loss estimated by him to have been in the amount of $4,200.00 arising from an alleged diminution in wheat crop yield. Mr. Haberer testified that the time he expended asserting his legal rights in the state court action in 1989 caused him to be unable to timely perform several agricultural tasks necessary to the production of winter wheat on his land. His testimony was not specific as to how any omitted or delayed actions lessened production or how weather conditions in the area could have affected yields. He presented no evidence of comparable yields of neighboring farms. Mr. Haberer candidly admitted that his figure was an estimate only. This claimed item of damage was called into question by the testimony of certain defendants who also raised winter wheat in the area. The court finds this item of claimed damages not to be supported by a preponderance of the evidence.

The United States additionally seeks compensatory damages for emotional distress and humiliation suffered by the Ha *1407 berers. Mr. Haberer’s testimony revealed that he has had extensive business and political experience. He had been engaged as a real estate broker and had been a member of the Russell City Council. The evidence showed that he had been elected a County Commissioner for Russell County, Kansas in the recent 1992 election. This matter indicates to the court that Mr. Haberer suffered little public opprobrium from the sale of his home to DSNWK for use as a group home for the mentally and physically handicapped. In sum, his testimony as to emotional distress did not impress the court.

On the other hand, the testimony of Patricia Haberer was specific as to instances of cool treatment or social shunning by some neighbors and acquaintances. Likewise, her background as a nurse, her special interest in the welfare of the handicapped, her experiences with handicapped relatives, and her demeanor as a sincere and sensitive person, made her testimony most credible. The court finds a damage award of $2,000.00 a reasonable amount for the emotional distress of the Haberers, particularly Mrs. Haberer.

B. Punitive Damages

The remaining item of damages which the court must consider is whether punitive damages should be awarded. The court has previously found that the defendants engaged in intentional handicap discrimination by attempting to enforce a neutral restrictive covenant for the purpose of denying equal housing opportunities to disabled individuals. See 788 F.Supp. at 1562.

Punitive damages are appropriate when the defendants’ conduct is motivated by evil intent or when it involves reckless or callous indifference to the federally protected rights of others. Smith v. Wade, 461 U.S. 30, 56, 103 S.Ct. 1625, 1640, 75 L.Ed.2d 632 (1983). The evidence before the court indicates that the defendants demonstrated at least a reckless indifference to the federally protected rights of the Haberers and the handicapped. The defendants (through their attorney/agent) were aware of the Fair Housing Act and chose to pursue their state court action notwithstanding the prohibitions of that Act. Punitive damages are thus appropriate.

The court does not find that the defendants acted out of evil motive.

Free access — add to your briefcase to read the full text and ask questions with AI

United States v. Scott, 809 F. Supp. 1404, 1992 U.S. Dist. LEXIS 20431, 1992 WL 395600 (D. Kan. 1992).

809 F. Supp. 1404 (United States v. Scott) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related