Ann Anastasia v. The Cosmopolitan National Bank of Chicago, Etc.

527 F.2d 150
CourtCourt of Appeals for the Seventh Circuit
DecidedFebruary 23, 1976
Docket74--1995
StatusPublished
Cited by16 cases

This text of 527 F.2d 150 (Ann Anastasia v. The Cosmopolitan National Bank of Chicago, Etc.) 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
Ann Anastasia v. The Cosmopolitan National Bank of Chicago, Etc., 527 F.2d 150 (7th Cir. 1976).

Opinion

MOORE, Senior Circuit Judge.

Illinois Revised Statutes ch. 82, § 57 1 and ch. 71, § 2 2 give hotelkeepers a lien *152 on the personal property brought into their establishments by guests to the extent of charges incurred for lodging, board or other services. 3 Ch. 71, § 2 also authorizes the hotelkeeper to detain and eventually, upon continued nonpayment of charges, after notice to the guests 4 to sell such property in order to realize on the lien. Such a sale bars any subsequent action against the hotel proprietor for the recovery of the property or the value thereof. This case represents a constitutional challenge to these provisions.

I.

The named plaintiffs in this class action were residents of hotels located in Chicago. In each instance they returned to their rooms one day to find that the hotelkeeper had either changed or “plugged” the lock on the door to the room so that the plaintiffs were unable to gain admittance. Upon inquiry, each plaintiff was told by their respective hotelkeepers that they would not be readmitted and the personal property that had been located in the room would not be released until such time as arrearages in rent had been paid. When efforts by the plaintiffs and their attorneys to regain possession of their property proved unavailing, this lawsuit was filed. 5

The suit, brought under 42 U.S.C. § 1983 and its jurisdictional counterpart, 28 U.S.C. § 1343, challenged the seizures of the personal possessions of the plaintiffs as both a deprivation of property without due process of law in violation of the Fourteenth Amendment in that no notice or hearing in which the plaintiffs could raise defenses to the alleged nonpayments of rent 6 was provided, and an unreasonable search and seizure in contravention of the Fourth Amendment. In addition to damages, the plaintiffs sought a declaration that ch. 82, § 57 and ch. 71, § 2 were unconstitutional and an injunction restraining the defendants from acting pursuant to these sections. On January 6, 1973, the district court granted leave to intervene as defendant to several of Chicago’s large hotels, and on June 5, 1973, granted plaintiffs’ motion to proceed as a plaintiff and defendant class action. 7

After the plaintiffs had submitted a motion for summary judgment, the dis *153 trict court sua sponte raised the issue of state action and issued a memorandum dismissing the complaint for lack of jurisdiction upon concluding that the action of the defendant hotels was not taken “under color” of law within the meaning of 42 U.S.C. § 1983. 8 From the judgment entered thereon, the plaintiffs appealed. We affirm.

II.

Ever since the Civil Rights Cases, 109 U.S. 3, 3 S.Ct. 18, 27 L.Ed. 835 (1883), it has been recognized that the Fourteenth Amendment serves as a limitation only-on governmental action and does not affect purely private conduct. But while this proposition is easily stated, the distinction between governmental and private action is seldom very clear. With increasing frequency in recent years, the federal courts have been drawn into the sphere of creditor-debtor relations to decide whether certain statutorily authorized creditor conduct constitutes action “under color of” state law within the meaning of section 1983, 9 or, what is essentially the same question, 10 whether the conduct is “state action” under the Fourteenth Amendment. A number of cases have considered the issue in the context of the self-help repossession remedy provided to secured creditors by sections 9 — 503 and 9 — 504 of the Uniform Commercial Code. 11 Only last year this court considered an Indiana common law and statutory mechanic’s lien, finding no state action where an automobile repairman detained a car after the owner refused to pay the bill for repairs. Phillips v. Money, 503 F.2d 990 (7th Cir. 1974), cert. denied, 420 U.S. 934, 95 S.Ct. 1141, 43 L.Ed.2d 409 (1975). And the context in which the state action question in this case arises — detention of personal property pursuant to a statutory landlords’ or innkeepers’ lien — is by no means unique, having been the subject of a number of court decisions. 12 In fact, detention of *154 property under authority of the very statutes challenged herein has in another case been declared unconstitutional by the United States District Court for the Northern District of Illinois. Collins v. Viceroy Hotel Corp., 338 F.Supp. 390 (N.D.Ill.1972). 13

Before moving to an analysis of the plaintiffs’ contentions, it is important to note that this case involves only the seizure of personal property by the defendant hotels. There have been no sales of the property of the named plaintiffs although ch. 71, § 2 authorizes sales under certain conditions. And the plaintiff class is defined as “[t]hose persons . whose personal property is now detained by a hotel. . . . ” (See note 7 supra). There is no mention made of a sale. Therefore, we have in this case no occasion to consider whether a statutorily authorized sale, with the concomitant bar on any subsequent action by a guest against a hotel proprietor for the recovery of any property or the value thereof, would constitute state action. Cf. Lucas v. Wisconsin Electric Power Co., 466 F.2d 638, 656 (7th Cir. 1972) (en banc), cert. denied, 409 U.S. 1114, 93 S.Ct. 928, 34 L.Ed.2d 696 (1973) (State had authorized electric company to enter private property but that authority had not been invoked in the case at bar; had it been invoked, “an entirely different issue would [have been] presented.”) It is appropriate, however, to note Mr. Justice Clark’s caveat made with regard to state action cases: “ ‘Differences in circumstances . . . beget appropriate differences in law . . .” Burton v. Wilmington Parking Authority, 365 U.S. 715, 726, 81 S.Ct. 856, 862, 6 L.Ed.2d 45 (1961), quoting, Whitney v. Tax Commission, 309 U.S.

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