City of Chicago v. Prus

453 N.E.2d 776, 117 Ill. App. 3d 455, 72 Ill. Dec. 901, 1983 Ill. App. LEXIS 2203
CourtAppellate Court of Illinois
DecidedAugust 19, 1983
Docket82-1863
StatusPublished
Cited by10 cases

This text of 453 N.E.2d 776 (City of Chicago v. Prus) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Chicago v. Prus, 453 N.E.2d 776, 117 Ill. App. 3d 455, 72 Ill. Dec. 901, 1983 Ill. App. LEXIS 2203 (Ill. Ct. App. 1983).

Opinion

JUSTICE SULLIVAN

delivered the opinion of the court:

This appeal is from an order finding unconstitutional an ordinance of the city of Chicago prohibiting the use of “For Sale” and “Sold” signs in designated residential areas of the city. Plaintiff contends that: (1) the trial court erred in ruling that it had the burden of proving that the ordinance is valid; and (2) the finding is against the manifest weight of the evidence.

In 1979, plaintiff filed seven two-count quasi-criminal complaints alleging that defendant violated a section of the Chicago Fair Housing Ordinance which provides in relevant part:

“In order to *** eliminate as far as legislatively permissible, all forms of discrimination and segregation in the field of housing, it shall be an unfair housing practice and unlawful for any owner, lessee, sub-lessee, assignee, managing agent, or other person, firm or corporation having the right to sell, rent, lease or sublease any housing accommodation, within the City of Chicago, or any agent of any of these, or any real estate broker
licensed as such by the City of Chicago.
* * *
H. To construct, place, maintain or install a ‘For Sale’ sign or ‘Sold’ sign of any shape, size or form on premises located in Residential Districts, zoned R1 through R8 under Chapter 194A of this Code.” (Chicago, Ill., Municipal Code, ch. 198.7b, par. 4(h) (1973).)

Defendant moved to dismiss the complaints on the ground that the ordinance impermissibly infringed upon his right of free speech guaranteed by the first amendment of the United States Constitution (U.S. Const., amend. I) and protected from invasion by State action under the fourteenth amendment (U.S. Const., amend. XIV; Bigelow v. Virginia (1975), 421 U.S. 809, 811, 44 L. Ed. 2d 600, 605, 95 S. Ct. 2222, 2227). The trial court, relying principally on Daugherty v. City of East Point (N.D. Ga. 1978), 447 F. Supp. 290, rejected plaintiff’s offer of proof that Chicago suffers from instability as a result of rapid racial change in its neighborhoods; that such transition is caused in part by tactics such as “For Sale” signs; and that the ordinance in question helps promote the continued viability of stable, racially integrated neighborhoods. In effect, by granting defendant’s motion to dismiss, the trial court held that the ban on “For Sale” signs was unconstitutional as a matter of law. We reversed and remanded the action for an evidentiary hearing (City of Chicago v. Prus (1981), 99 Ill. App. 3d 473, 425 N.E.2d 426), stating that, under Linmark Associates, Inc. v. Township of Willingboro (1977), 431 U.S. 85, 52 L. Ed. 2d 155, 97 S. Ct. 1614, plaintiff must be afforded an opportunity “to show that the purported harm caused by the posting of ‘For Sale’ signs could not be avoided by any means other than an ordinance banning them.” (99 Ill. App. 3d 473, 476, 425 N.E.2d 426, 428.) We expressed no opinion therein on the constitutionality of the challenged ordinance, nor did we specify the proof necessary to establish the governmental interest involved; however, we noted that “only an emergency situation threatening a sudden and perhaps wrenching change in a neighborhood could justify derogation from protected commercial speech by means of a ban ordinance” (99 Ill. App. 3d 473, 477, 425 N.E.2d 426, 429), and that such determinations must be made on a case-by-case basis.

On remand, a hearing was held at which Ed Marciniak, an urbanologist, testified for plaintiff that he was executive director of the Chicago Commission on Human Relations from 1960 to 1968, and deputy commissioner of the city’s Department of Planning from 1968 to 1972. From 1964 to 1967 the commission received 59 complaints which he or a commission staff member investigated. He did not specify the subject matter of the complaints, nor did he indicate the number which were determined to be without foundation after investigation. However, where there was a basis for the complaint, he would find numerous “For Sale” signs in the area. During 1964, he had several occasions to view the southeast side of Chicago in his capacity as director of the commission, and noted signs of racial violence and a rapid, radical change in the racial composition of neighborhoods in that area. He defined “panic peddling” as an effort to frighten homeowners into selling in an area which may be undergoing racial or ethnic change. The practice usually involves real estate brokers who create fear or exploit prejudices to obtain property listings. Homeowners are sometimes induced to sell to the broker at less than market value, and the broker then resells the home for more than its market value. Panic peddlers use a variety of techniques, including door-to-door solicitation; dissemination of literature stating that a member of a minority group has purchased a home nearby; racial steering; telephone solicitations; obtaining numerous listings, then placing signs to frighten other residents of the area into selling; “wrong number” phone calls in which the caller indicates that he thought he was calling “the black family that just moved in”; purchasing a home in the area and selling it on contract to a minority buyer; telling owners that the FHA had inspected certain property, implying that it would be sold to a black or Hispanic, that the police could no longer patrol the area effectively, and that the influx of minorities would affect the schools.

Marciniak further testified that between 1950 and 1970, panic peddling was taking place primarily in the southwestern, southeastern and eastern portions of the city, and arose because of the dual housing market. The white and minority populations were served by different brokers, and hoúses in one market would not be shown to persons served by the other market. In this way, those who controlled the white real estate market were able to confine the movement of minority groups to areas adjoining existing minority communities rather than allowing movement throughout the city and suburbs. This dual market was able to maintain itself through connections between the real estate industry and the insurance and mortgage industries; prospective minority buyers would find that they could not obtain the necessary mortgage or insurance to purchase a home in a “white” area. During this time, the minority population was increasing, and brokers serving that population had to “open up” new areas, that is, transfer properties from the white real estate market to the minority market. Marciniak stated that had there been effective tools at that time to open the entire market to all persons, there would not have been the massive racial transition in concentrated areas that characterized the period. However, because of existing conditions, brokers serving the minority market practiced panic-peddling techniques in order to obtain listings in predominantly white areas adjoining minority neighborhoods.

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Bluebook (online)
453 N.E.2d 776, 117 Ill. App. 3d 455, 72 Ill. Dec. 901, 1983 Ill. App. LEXIS 2203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chicago-v-prus-illappct-1983.