UNITED STATES OF AMERICA,
     Plaintiff,

v.

HBE CORPORATION,
d/b/a ADAM'S MARK HOTELS,
     Defendant.

___________________________________

The United States of America alleges that:

1. This action is brought by the Attorney General on behalf of the United States to enforce Title II of the Civil Rights Act of 1964 (Public Accommodations Act), 42 U.S.C. §§ 2000a et seq.
   Jurisdiction

2. This Court has jurisdiction over this action pursuant to 42 U.S.C. §§ 2000a-3(a) and 2000a-5(a) and 28 U.S.C. § 1345.

3. Venue is proper in the Middle District of Florida because some of the claims alleged herein arose in this District and the Defendant does business in this District.
   Parties

4. Defendant HBE Corporation ("HBE") is a privately-held corporation chartered under the laws of the State of Delaware. HBE Corporation's corporate headquarters are located in St. Louis, Missouri. All of the outstanding shares of stock of HBE are privately owned by Fred S. Kummer, Jr., his wife, June Kummer, and other related family members.

5. HBE Corporation has several divisions, including the Adam's Mark Hotel & Resort Division. The Adam's Mark Hotel & Resort Division owns and operates 21 large, full-service hotels, known as Adam's Mark Hotels, in locations around the country. Within the Middle District of Florida, HBE owns and operates three hotels, including the Daytona Beach Adams Mark Hotel.
   Title II Violations

6. Adam's Mark Hotels are places of public accommodation under 42 U.S.C. § 2000a(b)(1) and affect commerce within the meaning of 42 U.S.C. § 2000a(c)(1).

7. Defendant operates various restaurants, bars, or clubs within its hotels, which are places of public accommodation under 42 U.S.C. §§ 2000a(b)(2), (b)(3), or (b)(4), and affect commerce within the meaning of 42 U.S.C. §§ 2000a(c)(2), (c)(3), or (c)(4).

8. Defendant, acting through its officers, employees, and agents, has engaged in policies and practices which deny to persons, on account of race or color, the full and equal enjoyment of the goods, services, facilities, privileges, advantages, and accommodations of its hotels and the restaurants, bars, lounges, or clubs located therein.

9. Defendant, acting through its officers, employees and agents, has carried out such policies and practices of racial discrimination by, among other ways:
   1. applying different and more onerous terms and conditions to non-white persons at its hotels with regard to such things as prices for goods and services, provision of services, and requirements related to security, identification and reservations, than those applied to white persons;

   2. offering and renting to non-white persons less desirable hotel rooms than those offered and rented to white persons during comparable stays or special events;

   3. segregating non-white persons in rooms in less desirable locations than those offered and rented to white persons; and

   4. implementing policies and procedures to exclude or limit the number of non-white clientele in its hotels and the restaurants, bars, lounges, or clubs located therein.

10. The conduct of Defendant described in paragraphs 8 and 9 above constitutes a pattern or practice of resistance to the full and equal enjoyment by non-white persons of rights secured by 42 U.S.C. §§ 2000a et seq., and the pattern or practice is of such a nature and is intended to deny the full exercise of such rights.

Wherefore the United States requests that the Court enter an Order:

1. Declaring that the discriminatory practices of the Defendant violates Title II of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000a et seq.;

2. Enjoining Defendant, its officers, employees, agents, and successors, and all other persons in active concert or participation with any of them, from engaging in any act or practice which, on the basis of race or color, denies or abridges any rights secured by Title II of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000a et seq.; and

3. Requiring the Defendant, its officers, employees, agents, and successors, and all other persons in active concert or participation with any of them to take such affirmative steps as may be necessary to remedy the past unlawful conduct.

   The United States further prays for such additional relief as the interests of justice may require, together with the costs and disbursements of this action.

JANET RENO
ATTORNEY GENERAL

BILL LANN LEE
ACTING ASSISTANT ATTORNEY GENERAL

JOAN A. MAGAGNA
CHIEF, Housing & Civil Enforcement Section

BRIAN HEFFERNAN
DEPUTY CHIEF

JE YON JUNG
CHARLA D. JACKSON
TRIAL ATTORNEYS
Housing & Civil Enforcement Section
Civil Rights Division
U.S. Department of Justice
P.O. Box 65998
Washington, D.C. 20035-5998
(202) 305-1457
Fax: (202) 514-1116

DONNA A. BUCELLA
UNITED STATES ATTORNEY

WARREN A. ZIMMERMAN
CIVIL CHIEF
400 North Tampa Street
Suite 3200
Tampa FL 33602
(813) 274-6000
Fax: (813) 274-6200
Bar No: 652040