2 O.C. Latino Couples Win Housing Case

A federal judge has ruled that a San Juan Capistrano homeowners association and its property manager discriminated against two Latino couples by making ethnic remarks that dissuaded them from buying a condominium.

In a ruling announced Monday, U.S. District Judge David W. Williams in Los Angeles found that Casitas Capistrano Assn. and then-property manager Raymond Burton “dashed (the couples’) dream to improve their lifestyle” by telling a realtor that the association “did not want this type of element moving into the community.”

The judge ordered the homeowners association and Burton to pay a total of $61,790 in damages to the couples and the condominium owners who offered to sell the unit.

The case involved an attempt by Mauricio and Jovita Osorio and Alberto and Amalia Velasco to buy a condominium at the Casitas Capistrano complex in 1989. The couples entered into escrow on a two-bedroom unit owned by Bruce and Peggy Lewy, priced at $153,000.

According to the judge’s ruling, Burton sent a letter to the couples’ realtor during escrow noting that there could be a “possible legal problem” with two couples planning to live in a home zoned for single-family residences.

In the process of investigating whether the couples could qualify as a single family (Mauricio Osorio and Amalia Velasco are brother and sister), the realtor, Deborah Brewington, had a conversation with Burton, the judge said.

During that conversation, the judge said, Burton “inquired whether the two couples were Latino and indicated that Casitas was concerned with the problem of overcrowding. . . . He further mentioned that Latinos were given to multiplying and that it was feared that they would move in other relatives with them.”

Burton later repeated the remarks in another conversation with Brewington and her supervisor, the judge said.

Williams said he found no basis for discrimination in Burton’s letter but that his oral remarks “clearly illustrate” Burton’s attempt to exclude the couples. After learning of Burton’s comments, the couples withdrew their offer because they “did not desire to live where they were not wanted,” the judge said.

The Osorios, Velascos and Lewys subsequently filed complaints with the U.S. Department of Housing and Urban Development. It investigated and forwarded the complaints to the Justice Department, which filed suit under the Fair Housing Act.

Williams ordered the homeowners association and Burton to pay $25,000 to the Osorios and to the Velascos, and $11,790 to the Lewys, who later sold their unit at a lower price.

James Robie and Stephen Pascover, attorneys for the association and Burton, could not be reached for comment. But Kyle Kveton, a partner in their law firm, said Burton “denied making the allegedly derogatory and racially motivated comments. And those allegedly disparaging remarks that Mr. Burton made played no role in the buyers’ decision not to go through with the transaction.”

Kveton also said that the “homeowners association was not aware of any statement that Burton made, and (it) would not condone any such statements if in fact they were made.”

Kveton said Burton continues to live in Orange County but is no longer property manager for Casitas Capistrano.

In his ruling, Williams said Burton had made reference to not wanting the 42-unit Casitas Capistrano development to become like the large Capistrano Villa complex situated, in the judge’s words, “literally across the railroad tracks” and “predominantly occupied by Hispanics.”

“The testimony in this case characterizes (Capistrano) Villa as overcrowded, plagued by gang activity and drug traffic with accommodations that are hugely inferior to the more expensive Casitas,” Williams said.

The Osorios and Velascos, he added, “are well-educated persons who are each steadily employed, and though childless, decided to avoid living in an atmosphere such as characterized by (Capistrano) Villa because they wanted to raise a family away from the influence of drugs and gang activity.”

Williams said Burton’s remarks caused the couples “severe emotional distress, dashed their dream to improve their lifestyle and caused unfortunate consequences in their future lives.”