The Iowa Supreme Court has rejected claims of housing discrimination brought against a pair of Des Moines landlords.

The city's Civil and Human Rights Commission sued Patrick and Mary Knueven in 2019, accusing the couple of illegally charging higher rents to non-white tenants and discouraging them from applying to rent one of the homes they owned.

In 2021, a jury found Mary Knueven not liable for wrongdoing, and cleared Patrick Knueven of the allegation he charged higher rents, but found him liable for "steering," a term for illegally discouraging nonwhite applicants from living in particular residences or areas or encouraging them to live in other areas based on their racial or ethnic status. The court imposed a $50,000 civil penalty and ordered Knueven to repay attorney fees to the city.

Friday's decision by a unanimous Supreme Court reverses that outcome. Chief Justice Susan Christensen wrote that the district judge wrongly instructed the jury on what "steering" entails, and that considered under the correct definition, there's not enough evidence to support the charge. The court remanded the case with orders to dismiss it and reevaluate the award of attorney fees.

Attorney John Fatino, representing Knueven, said that "ultimately the Iowa Supreme Court correctly decided the case."

"The Court’s ruling clarified the law on the point as it was previously undecided under Iowa law," he said in an email. "We look forward to completing this dispute with the Commission."

Why Des Moines accused the Knuevens of discrimination

According to court filings, the case began after a resident complained to the commission about discrimination by the Kneuvens. The commission investigated with several rounds of "housing testers," prospective renters of various races and backgrounds, from 2015 to 2017.

In several cases, the commission alleged, Patrick Knueven gave different answers to white and nonwhite testers about whether rental properties were on the market and whether he had other properties available. In one case he allegedly offered a unit to a caller who identified herself as working with a refugee resettlement program for $150 more than he did to another caller who asked about it on her own behalf.

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The nonwhite testers also reported that Knueven was less courteous and more abrupt with them, seemed to avoid them and was "muttering expletives under his breath" during walk-throughs of some properties.

What is 'steering'?

The commission sued the Knuevens in 2019. When the case went to trial in 2021, the Knuevens asked the judge to instruct the jury that to prove allegations of steering, "you must find that the Defendants took some steps to show or guide the tester to an alternative property according to their [protected class]."

The judge refused, instead instructing the jurors they were to decide if Patrick Kneuven "engaged in steering by discouraging the protected tester from pursuing the housing and encouraging someone not of the protected class to pursue such housing."

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In Friday's ruling, Christensen agreed with Knueven that the district court's definition of steering was overbroad.

"Patrick’s disposition in his interactions with the testers may have some bearing in determining whether he engaged in steering, but he was correct in asserting that the jury also should have been instructed to find more than that for a steering violation," she wrote.

Supreme Court finds 'no evidence,' dismisses case

In reviewing the evidence presented at trial, the justices found there is "no evidence" that Knueven's treatment of prospective tenants amounted to steering.

"There was no evidence that Patrick performed some affirmative act to deny or obstruct the protected tester from receiving housing or guide the protected tester to an alternative property based on religion or national origin," Christensen wrote. "Patrick’s curtness in his phone call with a protected tester in comparison to his more amiable phone conversation with a control tester is inadequate to conclude that Patrick discriminated against theprotected tester based on her national origin or religion."

City Manager Scott Sanders said in a statement the city is "disappointed" by the outcome.

"While the City respects the judicial process, it is disappointed in the court’s ruling overturning a jury’s verdict," he said. "The city is grateful, however, that the court acknowledged that testing continues to be an essential tool in detecting possible violations of civil rights laws."

William Morris covers courts for the Des Moines Register. He can be contacted at wrmorris2@registermedia.com, 715-573-8166 or on Twitter at @DMRMorris.

This article originally appeared on Des Moines Register: Iowa Supreme Court reverses Des Moines landlord's discrimination verdict