Hutchinson Human Relations Commission v. Midland Credit Management, Inc.

517 P.2d 158, 213 Kan. 308, 1973 Kan. LEXIS 676, 6 Empl. Prac. Dec. (CCH) 9011, 13 Fair Empl. Prac. Cas. (BNA) 328
CourtSupreme Court of Kansas
DecidedDecember 8, 1973
Docket46,938
StatusPublished
Cited by23 cases

This text of 517 P.2d 158 (Hutchinson Human Relations Commission v. Midland Credit Management, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hutchinson Human Relations Commission v. Midland Credit Management, Inc., 517 P.2d 158, 213 Kan. 308, 1973 Kan. LEXIS 676, 6 Empl. Prac. Dec. (CCH) 9011, 13 Fair Empl. Prac. Cas. (BNA) 328 (kan 1973).

Opinions

The opinion of the court was delivered by

Fontron, J.:

This is an action for specific performance of a “conciliation agreement,” an instrument prominently known in the field of civil rights. It is brought by the Hutchinson Human Relations Commission against Midland Credit Management, Inc. We shall refer to the parties as plaintiff or Commission, on the one baufl^ and defendant or Midland, on the other. Dining the pleading stage Midland filed a motion to dismiss, a motion for summary judgment, and an answer. The trial court granted the motion to dismiss and the Commission has appealed.

By way of background the City of Hutchinson, Kansas, first adopted a human relations ordinance in 1968. That ordinance was repealed in 1971 and the present ordinance, No. 6132, was adopted in its stead. Some time thereafter a complaint, which is not contained in the record, was lodged against Midland alleging an unfair employment practice in violation of the ordinance, and on March 3, 1972, the following agreement was entered into:

“THIS AGREEMENT is made and entered into as of the 3rd day of [310]*310March, 1972, between the HUTCHINSON HUMAN RELATIONS COMMISSION, hereinafter referred to as the Commission, and MIDLAND CREDIT MANAGEMENT, INC., hereinafter referred to as the Respondent.
“A complaint having been filed under Chapter 37, Section 37-6 of the Code of the City of Hutchinson, Kansas, by Mrs. Bobby Van Burén against Respondent, the Commission having found Probable Cause to credit the allegations of discrimination due to Respondent’s failure to hire because of race. The matter having been conciliated, the parties hereby agree to and do settle the above matter in the following extent and manner:
“1. Respondent agrees that it is the stated policy of his company to offer employment and promotion in all positions to all persons regardless of race, sex, religion, color, national origin or ancestry. Respondent further agrees to communicate this policy, together with specific directives to assure it is carried out, to all his employees (or to all his supervisors) by written memo and to furnish the Commission with a copy of said memo.
“2. Respondent agrees to actively recruit and hire qualified minority people for positions in the office staff job classifications when the next vacancy occurs in this specific job area.
“3. (Deleted from agreement.)
“4. Respondent agrees that the Commission may, on its own motion, review compliance with the terms of the present agreement.
“5. The Commission agrees to close this case as a Satisfactory Adjustment, subject to the performance by the Respondent of the promises and representatives (sic) contained herein.
(Signatures are omitted.)”

On May 5, 1972, the instant action was filed. In brief, the petition alleges the making of the agreement as a result of a conciliation settlement; that about April 10, 1972, Midland placed an ad for a secretary in the Hutchinson News and on April 12 hired a white female secretary to fill the position; that Midland breached the agreement by failing to actively recruit and hire a minority person for the next existing vacancy; and that the breach was willful, wanton and without just cause. The petition concludes with a prayer for specific performance of the contract or in lieu thereof for $500 damages and $1000 punitive damages.

In dismissing the plaintiff’s lawsuit the trial court, in a well-prepared memorandum opinion, summarized its reasons for doing so under four categories: (1) The ordinance exceeds the police power granted cities. (2) The ordinance empowers the Commission to seek specific performance only, not damages for breach of contract. (3) The agreement is contrary to public policy in that an employer would be forced to hire a lesser qualified black than a better qualified white. (4) (a) Specific performance of an illegal agree[311]*311ment is improper. (b) Generally, equity will not specifically enforce a contract involving a breach of duty to a third party. (c) An agreement made in consideration of preventing or refraining from prosecution for crime is against public policy, (d) To compel Midland to discharge a white employee and hire a minority person could be an unlawful employment practice.

In its statement of points the Commission asserts that the trial court erred in dismissing the action on the several grounds assigned. We shall discuss the points raised on appeal in the sequence summarized by the trial court, but before doing so, we pause to point out certain provisions of the Hutchinson ordinance deemed material. It provides for a Human Relations Commission of seven resident Hutchinson citizens who are to be appointed by the mayor with the consent of the city governing body. Among the functions, duties and responsibilities enumerated in section 37.4 of the ordinance, the Commission is given authority (1) to receive, initiate, investigate, pass upon and attempt to conciliate all complaints alleging discrimination, segregation or separation in employment, in public accommodations or in public housing because of race, religion, color, national origin or ancestry; (2) to apply to the district court, after a complaint has been filed, to enjoin violation of the ordinance; and (3) to apply to the district court for enforcement of any conciliation agreement by seeking specific performance of the agreement. The ordinance also contains a section setting out complaint procedures, and other sections defining unlawful employment, public accommodations and housing procedures.

The first point for consideration is whether the city of Hutchinson, by enacting the ordinance, has acted within — or in excess of — its police power. This point encompasses, as well, questions relating to conflict with Kansas statutes and preemption of civil rights matters by the state.

The ordinance itself declares it to be the policy of the city in the exercise of its police power for the protection of the public safety, public health and general welfare, for the maintenance of business and good government and for the promotion of the city’s trade and commerce to eliminate and prevent discrimination, segregation or separation because of race, sex, religion, color, national origin or ancestry, and to assure equal opportunities and encouragement to every person in securing employment, equal public accommodations and equal housing opportunities.

[312]*312We would be hard pressed to say at this point in time and history that legislation designed to eliminate the poison of discrimination from our midst is not a proper exercise of the police power. Recent experience has gone far to demonstrate, particularly in urban communities, that discrimination against minorities has a direct and detrimental impact on tire orderly processes of government, the peace and tranquility of a community, and the health, safety and general well-being of its residents.

Problems arising from racial and other forms of discrimination are especially common in population centers; the cancer of injustice toward members of minority groups is peculiarly virulent on the local scene; discrimination is essentially a people problem, and must eventually be dealt with and solved by people in the localities where they live.

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Bluebook (online)
517 P.2d 158, 213 Kan. 308, 1973 Kan. LEXIS 676, 6 Empl. Prac. Dec. (CCH) 9011, 13 Fair Empl. Prac. Cas. (BNA) 328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hutchinson-human-relations-commission-v-midland-credit-management-inc-kan-1973.