By Jonathan Stempel NEW YORK (Reuters) – Landlords are not liable under the federal Fair Housing Act for ignoring tenant-on-tenant racial harassment in their buildings, a sharply divided federal appeals court ruled on Thursday.

In a 7-5 vote, the 2nd U.S. Circuit Court of Appeals in Manhattan said landlords cannot intentionally discriminate against tenants based on race but lack sufficient control over tenants to be held responsible when one tenant harasses another. The majority said requiring landlords to do more would make the landlord-tenant relationship more like an employer-employee rela…

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