Source: http://www.justice.gov/crt/about/hce/documents/gustafsonsettle.php
Timestamp: 2014-04-23 13:03:23
Document Index: 575225853

Matched Legal Cases: ['§ 3612', '§ 363', 'art 109', '§ 3614', '§ 1961', '§\n547', '§ 547', '§ 547', '§ 547', '§ 362', '§ 3602', '§ 3602']

United States v. Dennis and Susan Gustafson (D. Minn.)
CIV. NO. 02-CV-2897 (PAM/RLE) UNITED STATES OF AMERICA,	Plaintiff,
DENNIS and SUSAN GUSTAFSON,	Defendants.	CONSENT DECREE
The United States of America ("United States") commenced this action on behalf of Randal Perron, John Perron, Louise Perron, Brian Jorgenson, Lisa Jorgenson, John Kopp, and Stanley Jakubowski ("the Aggrieved Parties") pursuant to the Fair Housing Act, 42 U.S.C. §§ 3612(0) & 3614(a). The State of Minnesota intervened in
this action to enforce the Minnesota Human Rights Act, Minn. Stat.
§ 363.01 et seq. (2000), and on behalf of Randal Perron, John
Perron, Louise Perron, Brian Jorgenson, Lisa Jorgenson, and John
Kopp. The Complaints filed by the United States and the State of
Minnesota detail the allegations against Defendants and are
incorporated into this Consent Decree by reference. Defendants
Plaintiffs and Defendants agree that this Court has
jurisdiction over the subject matter of this case and that the
controversy should be resolved without further proceedings and
without an evidentiary hearing. Therefore, the parties have
consented to the entry of this Consent Decree.
IT IS HEREBY ORDERED, ADJUDGED, and DECREED that Defendants
Dennis and Susan Gustafson, their agents, employees, and all other
persons in active concert or participation with them in the sale or
rental of dwellings (1) are hereby permanently enjoined from:
A. Discriminating in the sale or rental, or to otherwise
make unavailable or deny, a dwelling to any buyer or
renter because of a disability of: (1) that buyer or
renter; (2) a person residing in or intending to reside
in that dwelling after it is sold, rented, or made
available; or (3) any person associated with that buyer
or renter;
B. Discriminating against any person in the terms,
dwelling, or in the provision of services of facilities
in connection with such dwelling, because of a disability
of: (1) that person; (2) a person residing in or
intending to reside in that dwelling after it is so sold,
rented, or made available; or (3) any person associated
with that person; and C. Making, printing, or publishing, or causing to be
made, printed, or published, any notice, statement, or
advertisement with respect to the sale or rental of a
dwelling that indicates any limitation or discrimination
based on disability (2) or an intention to make any such limitation or discrimination; D. Coercing, intimidating, threatening, retaliating
against, or interfering with any person, including each
of the Aggrieved Parties in the exercise or enjoyment of
the right to equal housing opportunity or because such
person has sought to exercise his or her right to equal
housing opportunity or has aided or encouraged any person
in the exercise or enjoyment of such right.
II. MONETARY DAMAGES
IT IS FURTHER ORDERED that on or before January 30, 2003,
Defendants shall make the following payments:
A.	Defendants shall pay to Randal Perron, John Perron, Louise Perron, Lisa Jorgenson, Brian Jorgenson, John Kopp, and
Stanley Jakubowski the amount of Two Hundred Fifty Thousand Dollars
($250,000). B.	In consideration of and concurrently with Defendants'
payment to them, Randal Perron, John Perron, Louise Perron, Lisa
Jorgenson, Brian Jorgenson, John Kopp, and Stanley Jakubowski shall
each execute and deliver to Defendants a Release in the form of
Attachment A to this Consent Decree. Defendants' obligation to
make this monetary disbursement shall be contingent upon the
execution of the Releases by Randal Perron, John Perron, Louise
Perron, Lisa Jorgenson, Brian Jorgenson, John Kopp, and Stanley
Jakubowski and their delivery to counsel for Defendants. C.	Payment shall be by certified check made payable to
Randal Perron, John Perron, Louise Perron, Brian Jorgenson, Lisa
Jorgenson, John Kopp, and Stanley Jakubowski, and delivered to
counsel for the United States on or before January 30, 2003. Upon
receipt, the United States shall forward the certified check to the
III. CONVEYANCE OF LOTS
A.	On or about January 30, 2003, the following lots in the
Whispering Pines subdivision in Harris, Minnesota, shall be
conveyed from Defendants Dennis and Susan Gustafson to G&K
Builders, Inc.:
Lot 1, Block 1 Whispering Pines Addition;
Lot 4, Block 1 Whispering Pines Addition; and
Lot 3, Block 1 Whispering Pines Addition.
Each lot shall be conveyed by warranty deed for the price of
$49,500. The above-referenced lots are being conveyed to G&K
Builders on behalf of Randal Perron, John Perron, Louise Perron,
Lisa Jorgenson, and Brian Jorgenson, for G&K Builders to construct homes on each of the above-referenced lots for the Perrons and the Jorgensons and then to convey the homes and lots to the Jorgensons and the Perrons pursuant to a separate agreement to be executed by G&K Builders and the Jorgensons and Perrons. In this transaction, the Perrons and Jorgensons are represented by "REMAX associates plus" and Stanley Jakubowski.
B.	Defendants Dennis and Susan Gustafson shall not obstruct
in any way the construction of the three homes on the above-referenced lots once the lots have been conveyed by them. Defendants shall also comply with all city and county ordinances
and regulations regarding the roadway, utilities, and culverts in
the Whispering Pines subdivision in order to facilitate the
construction of the homes on the above-referenced lots.
IV. AFFIRMATIVE RELIEF
IT IS FURTHER ORDERED that Defendants shall take the following affirmative steps:
A. Within thirty (30) days from the date of entry of
this Consent Decree, Defendants shall serve on counsel for the
United States and counsel for the State of Minnesota a
statement, under oath, in the form of Attachment B to this
Decree, verifying that they have read this Decree, understand
their legal responsibilities under this Decree, and will
comply with this Decree;
B. For the period of three (3) years after the entry of
this Consent Decree, if Defendants employ or otherwise
contract with any other person to assist in the sale or rental
of a dwelling, other than their personal residence, Defendants
shall, within ten (10) days of entering into such a
(1) instruct any such person in writing that such
sale or rental shall be in accordance with the Fair
Housing Act and the Minnesota Human Rights Act and
that such dwelling must be rented or sold to any
qualified prospective purchaser notwithstanding any
disability of any such person.
C. For the period of three (3) years after entry of this
Consent Decree, if Defendants place any advertisements or
utilize any promotional literature for any dwelling offered by
them for sale or rental, any such advertisement or promotional
literature shall conform with the provisions of the
regulations promulgated by the U.S. Department of Housing and
Urban Development ("HUD") at 24 C.F.R. Part 109. The fair
housing logo and slogan shall appear in all advertising by Defendants, including all brochures, handouts, stationery,
forms, and other writings that are routinely used to
communicate with prospective tenants. Such logo and slogan
shall be prominently placed and legible.
It is FURTHER ORDERED that beginning ten (10) days after the
date of this Consent Decree and continuing for a period of three
(3) years after the entry of this Consent Decree, Defendants shall
create and maintain the following records:
A. Representative copies of all advertising, if any, for
dwellings offered for sale or rental by Defendants identifying
the media in which such advertising was placed and the date(s)
published; B. A log indicating, with respect to each dwelling
offered for sale or rental by Defendants: (1) the name,
address, and telephone number of each person who offers to
purchase or rent that property; (2) the terms of the offer;
(3) whether the person making the offer proposes to use the
property as a group home or residence for persons with
disabilities; and (4) the disposition of the offer, including
the dates and terms of any counteroffer by either party.
C. A list of all persons whom Defendants have contracted
with or employed to assist in the sale or rental of any dwellings.
VI. INSPECTION OF RECORDS
It is FURTHER ORDERED that for a period of three (3) years
after entry of this Consent Decree, counsel for the United States
and the State of Minnesota shall have the right, during normal
business hours, to inspect and copy any of the records described in
Part V of this Decree upon reasonable written notice to Defendants. Counsel for the United States and the State of Minnesota shall
attempt to minimize any inconvenience and expense to Defendants
during such inspection and copy of such records. VII. REPORTING
It is FURTHER ORDERED that Defendants shall serve the
following reports on counsel for the United States:
A. Within thirty (30) days of the date of this
Decree, Defendants shall provide a report indicating all
actions taken to comply with Sections IV and V of this
Decree, including providing a copy of documents
pertaining to Section V. If Defendants have not engaged
in the offering of dwellings for sale or rent, Defendants
shall file a statement to that effect with counsel for
the United States and the same will constitute full
compliance thereof.
B. For a period of three (3) years after the entry
of this Decree, Defendants shall provide to the United
States, at six (6) month intervals, copies of the records
required under Section V. The reports under this
provision shall be due no later than ten (10) days after
the close of each six (6) month period. If Defendants
have not engaged in the offering of dwellings for sale or
rent, Defendants will file a statement to that effect
with counsel for the United States and the same will
constitute full compliance thereof.
A.	Duration of Consent Decree. This Consent Decree shall remain in effect for three (3) years and three (3) months after the date of its entry.
B.	Status of Future Violations. By consenting to the entry of this Consent Decree, the parties agree that any future violation of the Fair Housing Act by Defendants occurring after the date of this Decree shall constitute a "subsequent violation" pursuant to 42 U.S.C. § 3614(d)(1)(C)(ii).
C.	Dismissal of Complaints; Right to Petition to Reopen. The United States' Complaint and the State of Minnesota's Complaint shall be dismissed without prejudice as to the right of the United States and/or the State of Minnesota to petition the Court, at any time during the duration of this Decree, to reopen the case for the purpose of enforcing the Decree. D.	Resolution of Interpretation Disputes. The parties to this Consent Decree shall endeavor in good faith to resolve informally any differences regarding interpretation of and compliance with this Consent Decree prior to bringing such matters to the Court for resolution.	E.	Cost and Attorney Fees. Each party to this litigation agrees to bear its own costs and attorneys fees associated with this litigation.
F. Interest. In the event that Defendants fail to make any payment due under the provisions of Sections II supra on or before
the due date, Defendants agree that interest shall accrue on any
amount owing - calculated from the due date set forth in this
Consent Decree - at the amount of interest accruing for civil
judgments as provided pursuant to 28 U.S.C. § 1961.
G.	Bankruptcy Provisions. Defendants agree and expressly
warrant that they have reviewed their financial situation and that
they are currently solvent within the meaning of 11 U.S.C. §
547(b)(3) and will remain solvent following their payment to the
Aggrieved Parties. Further, all the parties expressly warrant
that, in evaluating whether to execute this Consent Decree, they:
(i) have intended that the mutual promises, covenants, and
obligations set forth herein constitute a contemporaneous exchange
for new value given to Defendants, within the meaning of 11 U.S.C.
§ 547(c)(1), and (ii) have concluded that these mutual promises,
covenants and obligations do, in fact, constitute such a
contemporaneous exchange. In the event Defendants commence, or a
thirty party commences, within 91 days of any payment under this
Consent Decree, any case, proceeding, or other action (a) under
any law relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have any order for relief of
Defendants' debts, or seeking to adjudicate Defendants as bankrupt
or insolvent, or (b) seeking appointment of a receiver, trustee,
custodian or other similar official for Defendants or for all or
any substantial part of Defendants' assets, Defendants agree as
1. Defendants' obligations under this Consent
Decree may not be avoided pursuant to 11 U.S.C. § 547,
and Defendants will not argue or otherwise take the
position in any such case, proceeding, or action that:
(i) Defendants' obligations under this Consent Decree may
be avoided under 11 U.S.C. § 547; (ii) Defendants were
insolvent at the time this Consent Decree was entered
into, or became insolvent as a result of the payment made
to the Aggrieved Parties; or (iii) the mutual promises,
covenants, and obligations set forth in this Consent
Decree do not constitute a contemporaneous exchange for
new value given to Defendants.
2. In the event that Defendants' obligations in
this Consent Decree are avoided through the exercise of
a trustee's avoidance powers under the Bankruptcy Code,
the United States, the State of Minnesota, or the
Aggrieved Parties, at their sole option, may rescind the
releases in this Consent Decree and bring any civil or
administrative claim, action, or proceeding against
Defendants for the claims that would otherwise be covered
by the releases provided. If the United States, the
State of Minnesota, or the Aggrieved Parties choose to do
so, Defendants agree that: (i) any such claims, actions
or proceedings brought by the United States, the State of
Minnesota, or the Aggrieved Parties are not subject to an
"automatic stay" pursuant to 11 U.S.C. § 362(a) as a
result of the action, case, or proceeding described in
the first clause of this Paragraph, and that Defendants
will not argue or otherwise contend that the claims,
actions, or proceedings of the United States, the State
of Minnesota, or the Aggrieved Parties are subject to an
automatic stay; (ii) Defendants will not plead, argue, or
otherwise raise any defenses under the theories of
statute of limitations, laches, estoppel, or similar
theories, to any such civil or administrative claims,
actions, or proceeding which are brought by the United
States, the State of Minnesota, or the Aggrieved Parties
within sixty (60) calendar days of written notification
to Defendants that the releases herein have been
rescinded pursuant to this paragraph, except to the
extent such defenses were available on November 12, 2002;
and (iii) the United States, the State of Minnesota, and
the Aggrieved Parties have a valid claim against
Defendants in the amount of $ 250,000, and the United
States, the State of Minnesota, and the Aggrieved Parties
may pursue their claim, inter alia, in the case, action,
or proceeding referenced in the first clause of this
paragraph, as well as in any other case, action, or
It is so ORDERED this day of 2002.
Dated:	RALPH F. BOYD, JR.
Atty. Reg. No. 166066
600 U.S. Courthouse 300 South Fourth Street Minneapolis, MN 55415 (612) 664-5600
Dated:	MIKE HATCH
Atty. Reg. No. 49360
St. Paul, MN 55103-2106
Attorneys for Plaintiff State of Minnesota Dated:	JOHNSON, KILLEN & SEILER, P.A.
By: Laura J. Schacht
Atty. Reg. No. 251070
Attorneys for Defendants Dennis and Susan Gustafson
Dated:	________________________
1. As used herein, the term "dwellings" shall have the same
meaning as that term is defined in 42 U.S.C.§ 3602(b) and shall
include any vacant land which is offered for sale or lease for the
construction or location thereon of any building which is designed
or intended for occupancy as a residence by one or more families.
2. As used herein, the term "disability" shall have the same
meaning as the term "handicap" as defined in 42 U.S.C. § 3602(h).
Document Filed: December 31, 2002.