Gladstone, Realtors v. Village of Bellwood

441 U.S. 91, 99 S. Ct. 1601, 60 L. Ed. 2d 66, 1979 U.S. LEXIS 86
CourtSupreme Court of the United States
DecidedApril 17, 1979
Docket77-1493
StatusPublished
Cited by1,760 cases

This text of 441 U.S. 91 (Gladstone, Realtors v. Village of Bellwood) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gladstone, Realtors v. Village of Bellwood, 441 U.S. 91, 99 S. Ct. 1601, 60 L. Ed. 2d 66, 1979 U.S. LEXIS 86 (1979).

Opinions

Mr. Justice Powell

delivered the opinion of the Court.

Title VIII of the Civil Rights Act of 1968, 82 Stat. 81, as amended, 42 U. S. C. § 3601 et seq., commonly known as the Fair Housing Act of 1968 (Act), broadly prohibits discrimination in housing throughout the Nation. This case presents both statutory and constitutional questions concerning standing to sue under Title VIII.

I

Petitioners in this case are two real estate brokerage firms, Gladstone, Realtors (Gladstone), and Robert A. Hintze, Realtors (Hintze), and nine of their employees. Respondents are the village of Bellwood, a municipal corporation and suburb of Chicago, one Negro and four white residents of Bellwood, and one Negro resident of neighboring Maywood. During [94]*94the fall of 1975, the individual respondents and other persons consulted petitioners, stating that they were interested in purchasing homes in the general suburban area of which Bellwood is a part. The individual respondents were not in fact seeking to purchase homes, but were acting as “testers” in an attempt to determine whether petitioners were engaging in racial “steering,” i. e., directing prospective home buyers interested in equivalent properties to different areas according to their race.

In October 1975, respondents commenced an action under § 812 of the Act, 42 U. S. C. § 3612,1 against Gladstone and its employees in the District Court for the Northern District of Illinois, alleging that they had violated § 804 of Title VIII, 42 U. S. C. § 3604.2 Simultaneously, respondents filed a [95]*95virtually identical complaint against Hintze and its salespeople in the same court. The complaints, as illuminated by subsequent discovery, charged that petitioners had steered prospective Negro home buyers toward an integrated area of Bellwood approximately 12 by 13 blocks in dimension and away from other, predominately white areas. White customers, by contrast, allegedly were steered away from the integrated area of Bellwood. Four of the six individual respondents reside in this “target” area of Bellwood described in the complaint.3 The complaints further alleged that the “Village of Bellwood . . . has been injured by having [its] housing market . . . wrongfully and illegally manipulated to the economic and social detriment of the citizens of [the] village,” and that the individual respondents “have been denied their right to select housing without regard to race and have been deprived of the social and professional benefits of living in an integrated society.” App. 6, 99. Respondents requested monetary, injunctive, and declaratory relief.

Petitioners moved for summary judgment in both cases, arguing that respondents had “no actionable claim or standing to sue” under the statutes relied upon in the complaint, that there existed “no case or controversy between the parties within the meaning of Article III of the Constitution,” and that respondents failed to satisfy the prudential requirements for standing applicable in the federal courts. Id., at 78, 143. The District Judge presiding over the case against Gladstone and its employees decided that respondents were not within the [96]*96class of persons to whom Congress had extended the right to sue under § 812. The court expressly adopted the reasoning of TOPIC v. Circle Realty, 532 F. 2d 1273 (CA9 1976), a case involving facts similar to those here. In TOPIC the Ninth Circuit decided that Congress intended to limit actions under § 812 of the Act to “direct victims” of Title VIII violations, even though under Trafficante v. Metropolitan Life Ins. Co., 409 U. S. 205 (1972), standing under § 810 4 of the Act, 42 [97]*97U. S. C. § 3610, extends to the broadest class of plaintiffs permitted by Art. III. Since the individual respondents had been acting only as testers and thus admittedly had not been steered away from any homes they might have wished to purchase, the court concluded that they were, at most, only indirect victims of Gladstone’s alleged violations of the Act. As respondents’ action was brought under § 812, the court ruled that they lacked standing under the terms of the Act. The court did not discuss Gladstone’s contention that respondents lacked standing under Art. Ill and the prudential limitations on federal jurisdiction. The District Judge presiding over the case against Hintze adopted the opinion of the Gladstone court as his own and also granted summary judgment.

The Court of Appeals for the Seventh Circuit consolidated the cases for appellate review. It first considered the significance of the fact that the individual respondents were merely testers not genuinely interested in purchasing homes. The court noted that while this precluded respondents from arguing that they had been denied their right to select housing without regard to race, “the testers did . . . generate evidence suggesting the perfectly permissible inference that [petitioners] have been engaging, as the complaints allege, in the practice of racial steering with all of the buyer prospects who come through their doors.” 569 F. 2d 1013, 1016 (1978) (emphasis in original). Thus, although the individual respondents lacked standing in their capacity as testers, they were entitled to prove that the discriminatory practices documented by [98]*98their testing deprived them, as residents of the adversely affected area, “of the social and professional benefits of living in an integrated society.”

The Court of Appeals then turned to the question whether the Art. Ill minima for standing had been satisfied. Observing the similarity between the allegations of injury here and those accepted as constitutionally sufficient in Traficante, it concluded that the individual respondents had presented a case or controversy within the meaning of Art. III. The court also read the complaints as alleging economic injury to the village itself as a consequence of the claimed racial segregation of a portion of Bellwood. Although this aspect of the case was not directly controlled by Traficante, the court found that the requirements of Art. Ill had been satisfied.5

Having concluded that a case or controversy within the meaning of Art. Ill was before it, the Court of Appeals addressed the District Court’s ruling that § 812 of the Act, unlike § 810, affords standing only to those directly injured by the discriminatory acts challenged. After considering the legislative history and recent federal-court decisions construing these provisions, the court concluded, contrary to the decision in TOPIC v. Circle Realty, supra, that §§810 and 812 provide alternative remedies available to precisely the same class of plaintiffs. The conclusion of this Court in Traficante that standing under § 810 extends “ ‘as broadly as is permitted by Article III of the Constitution,’ ” 409 U. S., at 209, quoting Blackett v. McGuire Bros., Inc., 445 F. 2d 442, 446 (CA3 1971), was seen as applicable to these cases brought under § 812.

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Bluebook (online)
441 U.S. 91, 99 S. Ct. 1601, 60 L. Ed. 2d 66, 1979 U.S. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gladstone-realtors-v-village-of-bellwood-scotus-1979.