Major Abuse of Power

1973 DOJ Housing Discrimination Settlement: Trump's First Civil Rights Case

Black applicants at Trump apartment buildings were systematically denied housing that was simultaneously offered to white applicants. A Black doorman described being instructed to discourage Black applicants; the government documented instances where the Trumps coded applications with a 'C' (for 'colored') to identify Black applicants for rejection. Trump hired Roy Cohn to fight the lawsuit, countersuing the government for $100 million. He settled without admitting guilt in 1975. Three years later, DOJ filed a second suit alleging violations of the settlement terms.

Overview

Donald Trump's first major encounter with federal law was a civil rights case. In 1973, the Department of Justice filed one of the largest housing discrimination lawsuits of its era against Trump Management Inc., Donald Trump, and his father Fred.

The allegations were specific and documented: Black applicants at Trump buildings were systematically denied housing that was simultaneously offered to white applicants. Government investigators who applied undercover documented the discrimination firsthand. A Black employee described being instructed to discourage Black applicants. Applications were coded to identify Black applicants for rejection.

The Cohn Response

Trump's response to the lawsuit — hire Roy Cohn, countersue the government for $100 million, deny everything aggressively — was the template he would follow for every legal challenge for the next five decades.

The countersuit was frivolous and was eventually dismissed. The strategy was not about winning the countersuit; it was about creating legal complexity, generating costs for the government, and maintaining a posture of aggression rather than concession. Cohn had taught Trump that being sued was not primarily a legal problem — it was a rhetorical and tactical problem that could be addressed by going on offense.

The Second Lawsuit

The 1975 settlement required Trump to end discriminatory practices. Three years later, the DOJ was back with a second lawsuit alleging Trump had violated the consent decree — continuing the practices he had promised to end.

The pattern would repeat itself throughout Trump's career: court orders, settlements without admission, continued violations, further legal proceedings. The specifics changed; the pattern of conduct and response did not.

Timeline

Sequence of events

  1. DOJ files housing discrimination suit

    The Department of Justice files suit against Trump Management Inc., Donald Trump, and Fred Trump, alleging systematic discrimination against Black applicants in Trump-owned apartment buildings across the New York City boroughs. The suit is described as one of the most significant housing discrimination cases filed under the Fair Housing Act.

  2. Trump countersues for $100 million

    Trump, represented by Roy Cohn, countersues the United States government for $100 million, alleging malicious prosecution and defamation. The countersuit is eventually dismissed.

  3. Consent decree settlement

    Trump settles with the DOJ without admitting guilt, agreeing to a consent decree requiring equal opportunity rental practices, advertising in Black-oriented publications, and informing the Urban League of vacancies.

  4. DOJ files second suit — consent decree violations

    The DOJ files a second suit alleging Trump has violated the consent decree by maintaining discriminatory practices — including a list of pre-approved applicants that excluded Black candidates and continuing to turn away Black applicants.

  5. Second case resolved

    The second discrimination case is resolved through a second consent decree with additional requirements. The cases collectively document a decade of systematic housing discrimination.

Sources

  1. Suit Over Trump's Racial Bias Called 'One of the Worst' Cases — The New York Times
  2. What did Trump do when the feds sued his company for racial bias? — The Washington Post
  3. Trump's Documented Record of Housing Discrimination — ProPublica
  4. The Long History of Trump's Housing Discrimination — The Atlantic archived ✓

Verification

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