Kentucky landlord Danny T. Bell has agreed to a proposed $150,000 settlement of a federal lawsuit alleging sexual harassment of female tenants. The agreement matters because it could resolve the civil case without a trial, but it still requires entry by a federal judge.
Key Facts
- Federal level: The proposed settlement would provide $140,000 for affected tenants and impose a $10,000 civil penalty.
- Federal level: The proposal would bar Bell from managing future residential rental properties.
- Procedural status: The Justice Department said the consent order still required court entry as of August 10, 2026.
What the proposed settlement would require
The Justice Department announced the agreement on August 10. It described Bell as the owner and manager of residential rental properties in Somerset, Kentucky.
The proposed consent order would allocate $140,000 to tenants harmed by the alleged harassment. Bell would also pay a $10,000 civil penalty to the United States.
The proposal would govern sales of Bell’s current residential rental properties. It would prohibit him from managing future residential rentals and from contacting tenants covered by the order.
Training and policies intended to prevent housing discrimination would also be required. Those obligations would not become a court-entered order unless the judge approves and enters the proposal.
What the lawsuit alleged
The United States filed the case in April 2023 under the Fair Housing Act. The complaint alleged that Bell offered housing benefits for sexual contact, made unwanted advances and threatened tenants with eviction.
Those assertions remain allegations rather than adjudicated findings. The proposed settlement does not establish that a court found Bell liable for violating the Fair Housing Act.
Bell disputed the claims before settlement
Bell previously sought summary judgment, arguing that the evidence could not support the government’s claims. Summary judgment is a ruling without trial when no material factual dispute requires resolution.
On March 31, 2026, the court denied Bell’s motion and concluded that factual disputes remained. That ruling allowed the case to continue but did not decide that the government’s allegations were true.
The court also denied Bell’s request to exclude the government’s expert and granted the government relief concerning deleted text messages. It then directed the parties to report whether they wanted a settlement conference or mediation.
What happens next
The U.S. District Court for the Eastern District of Kentucky must decide whether to enter the proposed consent order. Until then, Bell has agreed to pay $150,000 under a proposed consent order awaiting court entry, not a final court judgment.
