Race Discrimination

A resident lodged a complaint with the International Fair Housing Council against a homeowners’ association for discrimination on the basis of race and family status. The claim made against the insured association alleged that the association’s rules unreasonably restricted families with children from installing and using certain playground equipment. The resident further claimed the association enforced these restrictions most stringently against two families with bi-racial children. Even though the insured denied the allegations, after taking time and cost factors into account, the case settled. Indemnity costs alone were $4,000.

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