Ford v. Wisconsin Real Estate Examining Board

179 N.W.2d 786, 48 Wis. 2d 91, 42 A.L.R. 3d 1085, 1970 Wisc. LEXIS 904
CourtWisconsin Supreme Court
DecidedOctober 9, 1970
Docket131
StatusPublished
Cited by25 cases

This text of 179 N.W.2d 786 (Ford v. Wisconsin Real Estate Examining Board) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford v. Wisconsin Real Estate Examining Board, 179 N.W.2d 786, 48 Wis. 2d 91, 42 A.L.R. 3d 1085, 1970 Wisc. LEXIS 904 (Wis. 1970).

Opinion

Beilfuss, J.

The parties 2 have formulated and argued three questions:

1. Is a real estate broker guilty of racial discrimination in refusing to show property listed with him to Negroes pursuant to the unsolicited oral instructions of *97 the property owner when such instructions were agreed to hy the broker at the time the listing contract was made?

2. Does racial discrimination by a licensed real estate broker constitute “incompetency,” “improper dealing,” or “untrustworthiness” within the meaning, intent, and purpose of sec. 136.08 (2) (i) and (k), Stats., so as to authorize suspension or revocation of his license by the Wisconsin Real Estate Examining Board?

3. Does the decision of the Wisconsin Real Estate Examining Board that such conduct by a licensed broker is not racial discrimination constitute state action so as to deny Negroes the equal protection of the law guaranteed by art. XIY, sec. 1 of the United States Constitution, and art. I, sec. 1 of the Wisconsin Constitution?

The appellant Ford initially argues that Orth’s refusal to show him the property falls squarely within the definition of racial discrimination as set forth in sec. 101.60 (1) (b), Stats., which reads:

“ ‘Discriminate’ and ‘discrimination’ mean to segregate, separate, exclude or treat any person unequally only because of race, color, religion, national origin or ancestry. It is intended that the factors set forth herein shall be the sole bases for prohibiting discrimination.”
Orth’s conduct does fall within this broad definition but it was not actionable under that chapter. Sec. 101.60 (1) (a) 1, Stats., states that “housing” within the meaning of that section does not include:
“Any building or structure containing living quarters occupied or intended to be occupied by no more than one family and which is used by or was last used by the owner thereof as a bona fide residence for himself and any members of his family forming his household.”

Further, sec. 101.60 (3), Stats., provides in part: “This section shall be administered by the industrial commission 3 through its equal opportunities division. *98 . . .” This proceeding is clearly before the real estate examining board under the directives of ch. 136.

Appellant also predicates discrimination by Orth on a federal substantive right established by 42 USCA, p. 193, sec. 1982, which provides:

“All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property.”

In order to sustain a cause of action under this section one must prove that he has been deprived of the “same right . . . to . . . purchase . . . real . . . property” as is enjoyed by white citizens. He must also show that he has been denied the opportunity to purchase property on the basis of his race. If there has been such a denial then a cause of action arises under sec. 1982. (There may be several legitimate reasons which justify an owner in not selling or renting his property to a particular person whether he is white or black.)

This nondiscriminatory right is conferred by federal law and is not dependent on state law. Bush v. Kaim (D. C. Ohio, 1969), 297 Fed. Supp. 151.

Previously, 42 USCA, sec. 1982 was thought to bar only discrimination which was the product of state action and that it did not reach private discriminations. See Hurd v. Hodge (1948), 334 U. S. 24, 68 Sup. Ct. 847, 92 L. Ed. 1187. However, in June of 1968, the United States Supreme Court decided the landmark case interpreting sec. 1982, Jones v. Mayer Co. (1968), 392 U. S. 409, 88 Sup. Ct. 2186, 20 L. Ed. 2d 1189, which held the statute prohibits private discrimination as well as public.

In Jones, supra, the petitioners filed a complaint in Federal District Court alleging that the respondents had refused to sell them a home in a St. Louis county, Missouri community solely because the petitioners were Negroes. Relying in part on sec. 1982, the petitioners sought injunctive and other relief. (Jurisdiction . was *99 invoked under 28 USCA, pp. 202, 203, see. 1343 (4), providing for “damages . . . equitable or other relief under any Act of Congress providing for the protection of civil rights.”) The district court dismissed the complaint and the Eighth Circuit Court of Appeals affirmed, concluding that sec. 1982 applied only to state action and did not reach private refusals to sell. The supreme court granted certiorari and the precise issue it considered was whether sec. 1982 barred all racial discrimination or merely that which was the product of state action. The court stated, at page 413:

“We hold that sec. 1982 bars all racial discrimination, private as well as public, in the sale or rental of property, and that the statute, thus construed, is a valid exercise of the power of Congress to enforce the Thirteenth Amendment.”

The court also considered the relationship between sec. 1982 and the “Fair Housing Act of 1968” (42 USCA, p. 686, sec. 3601 et seg.). It found that the acts have independent significance and that the exemptions in the 1968 act are not applicable under the 1866 act (sec. 1982). It stated at pages 416, 417: “Its enactment [Civil Rights Act of 1968] had no effect upon sec. 1982 and no effect upon this litigation, . . .”

The standard established in Jones, supra, would appear to be simple. At page 421, the court said:

“So long as a Negro citizen who wants to buy or rent a home can be turned away simply because he is not white, he cannot be said to enjoy ‘the same right . . . as is enjoyed by white citizens . . . to . . . purchase [and] lease . . . real and personal property.’ 42 U. S. C. sec. 1982. (Emphasis added.)”

At the beginning of its opinion the supreme court stated what sec. 1982 does not encompass. At page 413 it said: “It does not refer explicitly to discrimination . . . in the provision of brokerage services.” In its brief and oral argument respondent cited this quotation in an *100 attempt to show that Jones is not applicable to the instant facts. It is submitted that respondent has taken this quotation out of context. The footnote [10] to the quoted language, at pages 413, 414, states:

“Contrast sec. 806. In noting that 42 U. S. C. sec. 1982 differs from the Civil Rights Act of 1968 in not dealing explicitly and exhaustively with such matters ...

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Bluebook (online)
179 N.W.2d 786, 48 Wis. 2d 91, 42 A.L.R. 3d 1085, 1970 Wisc. LEXIS 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-v-wisconsin-real-estate-examining-board-wis-1970.