Advertisement

Town & County-Sterling Heights, a franchise of Century 21, is accused of steering prospective white buyers to mostly white neighborhoods and black buyers to mostly black neighborhoods.

The National Fair Housing Alliance and the Hollowell family filed the suit Jan. 24 in United States District Court, alleging violation of federal housing laws.

On the same day, the Michigan Department of Civil Rights issued a formal charge against Town & Country for illegal housing discrimination, stemming from several alleged incidents of discrimination is 2005.

“The NFHA filed with us in 2005 and, after we released our results, they decided to withdraw from our process and file a federal lawsuit, which is within their right,” said Harold Core, spokesman for the MDCR.

Town & Country-Sterling Heights, based in Rochester, has offices in Sterling Heights, Troy and Grosse Pointe, where the Hollowells allege they were discriminated against, as well as 10 other communities. Also named in the lawsuit are Century 21 Real Estate LLC in Delaware and agent Edward Dallas.

According to the lawsuit, Darrick and Kimberly Hollowell selected Century 21 Real Estate LLC to help them sell their home in Detroit, and purchase a home in Grosse Pointe.

The Hollowells had used Century 21 to purchase their home in Detroit, as well when they were considering moving out of state. Because of its national branding of advertising, they believed, according to the lawsuit, that they would receive “professional, courteous service” at any one of the Century 21 franchises.

“Century 21 Town & Country’s Sales Associate Edward A. Dallas discouraged the Hollowells from moving to the Grosse Pointes, an area well-known for excellent public school districts and stable property values,” the lawsuit reads. “Instead, Mr. Dallas steered them to Harper Woods because of their race. Mr. Dallas explained that some areas of Harper Woods are assigned to the Grosse Pointe School District ... he did not give them an opportunity to see homes for sale in any of the other Grosse Pointe areas.”

In June 2005, the Hollowells purchased a home in Harper Woods. Dallas assisted them on the purchase, as well as the sale of their home in Detroit.

The NFHA, after identifying Century 21 Town & Country as a real estate company that engaged in discriminatory housing practices, participated in a follow-up testing.

The testing, among other things, revealed that the white tester telephoned Town & Country to inquire about a home located in Harper Woods. The white tester was shown 10 homes in Harper Woods in majority white census blocks. A black tester called the same office a week later about a home in Harper Woods and was shown three homes in Detroit, in majority black census blocks, and none in Harper Woods.

During another test, a black tester called an office to inspect a home in St. Clair Shores, but was shown four homes in Detroit and none in St. Clair Shores. The sales associate, who is black, told the black tester that “if there are too many of us, the neighborhood goes down.”

A white tester telephoned the same office about a home in St. Clair Shores, and was shown five homes in St. Clair Shores, Harper Woods, Eastpointe and a majority white census block in Detroit by the same sales associate who helped the black tester. The agent told the white tester that a white neighborhood was “very orderly, and that neighbors watched to make sure that their neighbors’ lawns were cut and their leaves were raked. She further explained that blacks did not like to be restricted by order and did not want someone watching over them.”

The lawsuit also alleges that Century 21 Town & Country, one of the top producing real estate firms in the metropolitan Detroit area, does not have any sales offices in predominately black neighborhoods or in the city of Detroit.

The Hollowells are seeking compensatory and punitive damages, as well as reasonable attorney fees and costs. The lawsuit also seeks to impose injunctive relief prohibiting the defendants, their partners, agents, employees and assignees from violating the unlawful practices alleged.

A representative from Century 21 Town & Country had no comment on the lawsuit.