Alvin Pearson, Brenda Curtis, and Century 21 Pearson, Inc. Realtors v. James R. Edgar and James E. Ryan

153 F.3d 397, 1998 U.S. App. LEXIS 18260, 1998 WL 456252
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 7, 1998
Docket97-2667
StatusPublished
Cited by31 cases

This text of 153 F.3d 397 (Alvin Pearson, Brenda Curtis, and Century 21 Pearson, Inc. Realtors v. James R. Edgar and James E. Ryan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alvin Pearson, Brenda Curtis, and Century 21 Pearson, Inc. Realtors v. James R. Edgar and James E. Ryan, 153 F.3d 397, 1998 U.S. App. LEXIS 18260, 1998 WL 456252 (7th Cir. 1998).

Opinion

KANNE, Circuit Judge.

In this opinion again we address the constitutionality of an Illinois statute regulating certain real estate sales practices regarding solicitation. The district court held that the statute violates the First Amendment and the Equal Protection and Due Process Clauses of the Fourteenth Amendment. We agree that the statute violates the First Amendment, but we disagree with the district court’s other conclusions.

I. HISTORY

The Illinois General Assembly enacted 720 ILCS 590/1 — 1(d) (“the statute”) to try to prevent blockbusting, or panic peddling, by real estate agents. Blockbusting, or panic peddling, is a real estate practice in which real estate agents encourage homeowners to put their homes on the market by exploiting fears of change in the racial composition of the neighborhood and the ensuant declining home values. The statute allows homeowners to notify real estate agents that they do not wish to be solicited. Solicitation of one of these homeowners by an agent who has notice of the homeowner’s contrary wishes is a criminal offense. The statute reads as follows:

It shall be unlawful for any person or corporation knowingly:
(d) To solicit any owner of residential property to sell or list such residential property at any time after such person or corporation has notice that such owner does not desire to sell such residential property. For the purpose of this subsection, notice must be provided as follows:
(1)The notice may be given by the owner personally or by a third party in the owner’s name, either in the form of an individual notice or a list, provided it complies with this subsection.
(2) Such notice shall be explicit as to whether each owner on the notice seeks to avoid both solicitation for listing and sale, or only for listing, or only for sale, as well as the period of time for which any avoidance is desired. The notice shall be dated and either of the following shall apply: (A) each owner shall have signed the notice or (B) the person or entity preparing the notice shall provide an accompanying affidavit to the effect that all the names on the notice are, in fact, genuine as to the identity of the persons listed and that such persons have requested not to be solicited as indicated.
(3) The individual notice, or notice in the form of a list with the accompanying affidavit, shall be served personally or by certified or registered mail, return receipt requested.

The remainder of the statute makes blockbusting itself illegal; that part of the statute is not at issue in this case.

After passage of the statute, a community group in the Beverly neighborhood of Chicago known as the Beverly Area Planning Association canvassed the neighborhood to find homeowners who did not want to be solicited by real estate agents. The Association compiled a list of names and served the list on local real estate agents.

The plaintiffs are Century 21 Pearson, Inc. Realtors, Alvin Pearson, and Brenda Curtis. Pearson owns the Century 21 agency, which employs plaintiff Curtis as well as Mardie Brown. Brown made a solicitation call to a homeowner in the Beverly neighborhood after the Century 21 agency had been served with a list containing that homeowner’s name. Pearson, Brown, and the Century 21 agency were charged with violating the statute; the criminal complaints were dismissed but not before each was sentenced to a $100 fine and placed under court supervision. On March 31, 1986, the plaintiffs filed this civil rights suit alleging that the statute violates the First Amendment. They also alleged *400 that the statute is unconstitutionally vague and violates the Equal Protection Clause.

The plaintiffs moved for a preliminary injunction to halt application of the statute during litigation. The district court found that the complaint failed to state a claim under the First Amendment and that the plaintiffs had no likelihood of success on the merits; the district court therefore denied the motion for a preliminary injunction. Only plaintiff Curtis pursued an interlocutory appeal. We affirmed the district court’s denial of the preliminary injunction and remanded the case for further proceedings in an opinion that became the key to this long running saga. See Curtis v. Thompson, 840 F.2d 1291 (7th Cir.1988).

The district court read our opinion in Curtis to preclude any chance of success for any of the plaintiffs and to establish the law of the case, and the district court dismissed the case in its entirety. See Pearson v. Thompson, No. 86 C 2181, 1989 WL 88367 (N.D.Ill. July 26, 1989). All the plaintiffs then appealed, and we affirmed on law of the case grounds. See Pearson v. Thompson, 955 F.2d 46, 1992 WL 25349 (7th Cir. Feb. 13, 1992), vacated, Pearson v. Edgar, 507 U.S. 1015, 113 S.Ct. 1809, 123 L.Ed.2d 441 (1993).

The plaintiffs petitioned for a -writ of cer-tiorari. The Supreme Court granted the writ, vacated our second opinion, and remanded the case to us “for further consideration in light of City of Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 113 S.Ct. 1505, 123 L.Ed.2d 99 (1993).” Pearson v. Edgar, 507 U.S. 1015, 113 S.Ct. 1809, 123 L.Ed.2d 441 (1993). We, in turn, remanded the case to the district court “for consideration of the impact of Cincinnati v. Discovery Network.... The district court should conduct an evidentiary hearing to allow the parties to create the appropriate record for determining the constitutionality of Ill.Rev. Stat. ch. 38 7051(d) under the new standards set out by Discovery Network.” Pearson v. Thompson, 4 F.3d 997, 1993 WL 315601 (7th Cir. Aug. 12, 1993).

On remand, the district court conducted that evidentiary healing but then decided that further proceedings would help it make a better decision about the constitutionality of the statute. To that end, the district court ordered the parties to prepare for a bench trial.

At the conclusion of the trial, the district court analyzed the state’s two asserted justifications for the statute: preventing blockbusting and protecting residential privacy. Some of the key findings of fact relating to those justifications are:

37. There is no evidence that standard real estate marketing materials cause rapid racial change or contribute to panic selling.
38. Panic peddling and blockbusting did occur in Chicago during the 1960s and early 1970s.
39. However, blockbusting and panic peddling rarely, if ever, occur in Illinois today.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Richwine v. Matuszak
N.D. Indiana, 2023
TULLY v. OKESON
S.D. Indiana, 2022
United States v. Luce
N.D. Illinois, 2019
Peterson v. Village of Downers Grove
150 F. Supp. 3d 910 (N.D. Illinois, 2015)
Larson v. City & County of San Francisco
192 Cal. App. 4th 1263 (California Court of Appeal, 2011)
Maria Gonzalez v. State of Arizona
624 F.3d 1162 (Ninth Circuit, 2010)
Gonzalez v. Arizona
649 F.3d 953 (Ninth Circuit, 2010)
National Coalition of Prayer, Inc. v. Carter
455 F.3d 783 (Seventh Circuit, 2006)
National Coalition Of Prayer, Inc. v. Steve Carter
455 F.3d 783 (Seventh Circuit, 2006)
Andre Mendenhall, Sr. v. Mueller Streamline Co.
419 F.3d 686 (Seventh Circuit, 2005)
United States v. Malik, David
Seventh Circuit, 2004
United States v. David Malik
385 F.3d 758 (Seventh Circuit, 2004)
Montgomery v. Davis
76 F. App'x 731 (Seventh Circuit, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
153 F.3d 397, 1998 U.S. App. LEXIS 18260, 1998 WL 456252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alvin-pearson-brenda-curtis-and-century-21-pearson-inc-realtors-v-ca7-1998.