Donald Sterling to pay $2.725 million to settle housing discrimination lawsuit [Updated]

Los Angeles Clippers owner and real estate mogul Donald T. Sterling has agreed to pay a record $2.725 million to settle allegations that he discriminated against African Americans, Hispanics and families with children at scores of apartment buildings he owns in and around Los Angeles.

The settlement, which must be approved by U.S. District Judge Dale S. Fischer, is the largest ever obtained by the Justice Department in a housing discrimination case involving apartment rentals, officials said.

If approved, the settlement would also resolve a pair of lawsuits by former tenants of Sterling who alleged they were discriminated against because of their race.

[Updated at 1:10 p.m.: In the court documents describing the agreement, Sterling and his wife, Rochelle, deny any wrongdoing. They describe the agreement as "a compromise of disputed claims" and not an admission of any liability.]

Under the agreement, Sterling and his wife would pay $2.625 million to a fund for people who were harmed by their discriminatory practices, officials said. They would also pay a $100,000 penalty to the government.

“The magnitude of this settlement demonstrates our commitment to vigorously prosecute violations of the Fair Housing Act,” Thomas E. Perez, head of the Justice Department’s Civil Rights Division, said in a statement. “With tight mortgage credit and rising foreclosures, it is more important than ever that minorities not face discrimination when renting apartments.”

The Justice Department sued the Sterlings three years ago, accusing them of favoring Korean tenants while seeking to exclude blacks and families with children. Through their Beverly Hills Properties, the Sterlings own and manage about 119 apartment buildings with some 5,000 units in Los Angeles County, according to the Justice Department.

In court filings, Justice Department lawyers presented evidence that the Sterlings made statements “indicating that African Americans and Hispanics were not desirable tenants and that they preferred Korean tenants” occupy buildings they owned in Koreatown.

Had the case gone to trial, an expert would have testified that an analysis of the Sterlings' rental practices in Koreatown revealed that they rented to far fewer African Americans and Hispanics than would be expected, based on demographics. As part of the settlement, the Sterlings will be required to pay for an independent contractor to monitor their employees' compliance with the Fair Housing Act over the next three years. The results of the tests would be reported to the Sterlings and to the government.

-- Scott Glover

Photo: Clippers owner Donald T. Sterling at a game. Credit: Alex Gallardo / Los Angeles Times

Comments

[GR]

I bet we won't see Sterling running a full page ad with his picture in it bragging about this.

[shakazulu]

This is what the African American activist in the black community has been protesting against for years, the continued gentrification of Los Angeles. When they changed the name of South Central Los Angeles to South Los Angeles, we knew they were trying to get all the rich trust fund hipsters into those communities with well built homes and 15 - 20 minutes away from the beach. The powers that be in Los Angeles are trying to turn the core of L.A. into an urban Disneyland minus the minorities of course.

[dino larez]

i think this is a lot of crock" the the strlings. are being sued by these money hungry blood suckers. ive deiven limousines for 19 years. ive served some of mr donald sterlings renters of his apts. ive seen hispanic/black/and many other famileys. in the buildings. yes famileys.most of his workers are black/ philapino/and hispanic workers. how can that be that he is being acused.the city is looking to money thats all. i love the mr. donald sterling. and the way he treats his workers and and tenants. and get this ive never met the MAN" i hope he wins this one" in court.

[Da Maverick]

Elgin Baylor's lawyers must be smiling today. At first glance, 2.7 million doesn't seem like a whole lot, but Baylor's lawyers just might be able to extract a sum that may actually annoy Sterling.

Hey Sterling, can a plantation owner be Korean/Asian?

[Peter323]

And this jerk owns the Clippers, located in the heart of Los Angeles and drawing African-American and Latino fans. He and his wife may get rid of the legal liability by paying off, but they can't shed the moral stigma so readily. They owe Los Angeles an apology.

[KK]

I wonder if anybody will sue if it is the other way around where the landlord prefer Blacks and Hispanic. Don't they get to choose the best tenant?

[Rik]

Good news.
Now if someone could just sue him for false advertising. The Clippers are not an NBA team

[Randy Hoover]

Why would any Black or Latino person support this guys team? What a racisit jerk. If you buy a clippers jersey, youre a fool.

[politicallycorrect]

Korean tenants right? It's because Koreans actually pay their rent, don't have entitlement attitudes, don't threaten with frivolous lawsuits with the race-card involved, don't bump rap music blaring the n-word and other vulgarities at 2 in the morning, don't have an army of boisterous children who put excess wear and tear on property...You get the picture?

[Detroit4LIfe]

how come the LA Times is not posting comments from readers regarding Don Sterling the racist? very disappointed in the LA Times. very disappointed. guess the payoff was good from KKK man Don.

[Gebster]

What a dirtbag biggot! And what is the deal with the Sunday print edition of the Times and congrats ads for various causes showing that dirtbag biggot on every other page? Thank god for the online edition of the times and multi-tab web browsers...it makes reading the Times a lot easier and quicker since i don't have flip thru 20 pages of crap ads saying congrats for this and that to the dirtbag biggot.

[Herbert A.]

I think this is a sham. Did they do an analysis on which of the tenants, Korean or African American or Families paid their rent on time and caused a minimum of unwarranted headaches for the Property Owner.

Also, did they do an analysis of property owners in other areas with de facto segregation? Places like Chinatown, East LA, South Central or West LA? Let's see some comparisons to other property owner rental demographic data.

Also, does the fact Mr. Sterling is Jewish play a role in the investigation. I wonder.. I think the Justice Department should also investigate a range of property owners and not single out Mr. Sterling.

Also, doesn't Mr. Sterling's charitable work in LA county amount to anything? I bet he's donated millions of dollars to programs that help African American and other minority kids.

I am afraid the Justic Department is wrong in this ruling.

[Maury]

Typical tight--wad, selfish sob rich guy. He's more worried about jacking up his rental units and BAM!! 2.75 mil in one shot. GOOD! He'll have to do alot of rent increases to make up for this, lol.

[Real American]

The man just didn't want blacks and hispanics messing up his properties..sorry folks...I live in the Valley and it has gone down the toilet because of blacks and hispanics not taking care of neighborhoods, buildings, homes,s treets...they park broken down cars on their front lawns...let's say a hispanic or african american owned these properties and discriminated against blacks and hsipanics...would he or she get sued....probably not..oh by the way Im Asian froom East Africa..nto a racist, just soemone who sees the truth and writes it...

[Terry Amdur]

Perhaps now we will finally see an end to the self-promoting ads lauding Sterling for his supposed humanitarian efforts that appear almost daily in the LA Times.

[derrick]

yes , you can play basketball , but unless you are a clipper you can't live in my apt. well mr sterling why not put koreans on your basketball team. strange isn't it this has not made the nightly news, maybe just maybe he jewish , o no , taht couldn't be it , but the damm truth it is and it has been to the beginning of this rotten city. there only hate crime unless it done to jews.

[alex alva]

How sad I mean here this guys mug is CONSTANTLY plastered in the paper showcasing what a humanitarian he is and what prize he (and now his wife) getting...looks like he can feel the grim reaper marching up and now wants to buy his way into where ever sleezebag slumlords go when they DIE

[beyouself]

good this guy is a crook

[marley]

Hmm Is Don Sterling related to Niki Sterling? Just curious. Cant discriminate, this is america, cant even ask if they are legal residents of the US

[C]

No matter what the reason...discrimination of ANY kind is WRONG! What's done in the dark will ALWAYS come to the light.

[John Keane]

Yup, you've got to watch out for these Zionists. Racism is prevailent in all races. He wants top dollar for his real estate deals, he's not into social housing.

[Gordon "Lug Nutzz" stewart]

I worked for Donald T. Sterling for almost 8 years in the mid 90's. I think he is being gouged by greedy lawyers and opportinistic jackyl's that use the descrimination card like toilet aper. This man is one of the most generous and fair people I have ever met. It's a shame that some lazy people have to find a loophole to extract what they do not have enough pride to earn. Gee, so the government discovered that there were more korean tenants in his buildings in "Korea-Town".... than black or latin tenants. Hmmmmm, could it possibly be because it is KOREA town? A korean community? I bet there are more latin tenants in east LA...and black tenants in South central. Maybe again due to the community? The makeup of the adjacent cities? This is damned fraud. Mr. Sterling, I know your heart, and your integrity. God BLess you and Shelley. Gordon Stewart, former employee, and a friend always.

[MC]

I used to work for this man. Its about time "they" got what was comming to them.

[jp las vegas]

if they're his apartments, then why isn't he allowed to rent them out to whoever he wants to? why is discrimination not ok when it's our own personal stuff that we're letting other people borrow for a price? the reality is that this is rational discrimination if more members of a group trash the place and don't pay their rent than another group, then why shouldn't it be the private sector's right to operate in their interests? maybe these people should just live in public housing - there's still plenty of that isn't there - especially with mr. welfare being the president????

[clay]

I worked for orkin pest control during part of the time this proceedings has been going on and I worked in some of his buildings. The tenants complained that they were being discriminated against and told me direct examples. I know these allegations to have substance.