Illinois Ass'n of Realtors v. Village of Bellwood

516 F. Supp. 1067, 1981 U.S. Dist. LEXIS 13396
CourtDistrict Court, N.D. Illinois
DecidedJune 16, 1981
Docket78 C 3681
StatusPublished
Cited by3 cases

This text of 516 F. Supp. 1067 (Illinois Ass'n of Realtors v. Village of Bellwood) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Ass'n of Realtors v. Village of Bellwood, 516 F. Supp. 1067, 1981 U.S. Dist. LEXIS 13396 (N.D. Ill. 1981).

Opinion

MEMORANDUM OPINION

GRADY, District Judge.

Plaintiffs brought this action for declaratory and injunctive relief challenging the constitutionality of two Bellwood ordinances. Before the court is plaintiffs’ motion for summary judgment. The motion is granted.

The text of each ordinance is set forth in an appendix to this opinion, and we will therefore provide only a brief description here. Ordinance 77-23 is entitled “An Ordinance Regulating Real Estate Solicitation In The Village of Bellwood, Cook County, Illinois” and provides that before any real estate agent “enters into any form of real estate solicitation for listings in the Village of Bellwood,” the agent must obtain a permit from the Village government. An application must be submitted to the Citizens Advisory Council (“the Council”) which shall refuse to issue the permit “if in the opinion of the Council, said solicitation shall be deemed detrimental to the welfare of the community,” in violation of Bellwood’s anti-panic peddling ordinance or in violation of its Fair Housing Ordinance, “either in intent or effect.” Solicitations made in violation of the ordinance subject the offender to a fine of not less than $50.00 nor more than $500.00 for each violation.

Ordinance 77-2 is entitled “An Ordinance Requiring Notification Of Intent To Sell Or Rent Residential Property” and requires that “all owners, agents, Brokers or any individual or legal entity having ownership or control of any residential property which is offered for sale or rental within the Village of Bellwood, must notify the Village . . . five days after the first real estate listing agreement is entered into, and or *1069 public notification of such intent to sell is made, whichever shall occur first.” Failure to give the notice subjects the offender to a fine of not less than $5.00 and not more than $500.00 for each day on which a violation occurs.

Plaintiff Illinois Association of Realtors is a not-for-profit corporation consisting of over 300 members who are engaged in the real estate business in Bellwood. The Association is dedicated, inter alia, to “recommendpng] and promotpng] legislation which will safeguard and advance the interest of property ownership” and to “provid[ing] a unified medium for real estate owners and those engaged in the real estate business whereby their interests may be safeguarded and advanced.” By-Laws, ¶¶ 4, 8, Complaint, ¶ 4. Plaintiffs Francis M. Davies, John M. Davies and John M. Davies, III are engaged in the realty business in Bellwood under the name Davies Realty Shop. Plaintiff Ora Dee Williams is also a realtor in Bellwood and operates Donora Realty. The employees of both realty companies have submitted affidavits stating that they have “in the past engaged in lawful solicitation for real estate listings” and desire to continue “to engage in such solicitation in the future.” Davies Affid., ¶ 4; Williams Affid., ¶ 4. 1

Plaintiffs have filed a two-count complaint for declaratory and injunctive relief. In Count I, plaintiffs allege that Ordinance 77-13 is facially invalid in that it imposes an unconstitutional prior restraint on their efforts to solicit business and is impermissibly overbroad and vague. In Count II, plaintiffs claim that Ordinance 77-2 also is unconstitutionally vague and denies equal protection. 2

I. Ordinance 77-13

The kind of speech in which plaintiffs wish to engage and which Ordinance 77-13 regulates is entitled to First Amendment protection. Linmark Associates, Inc. v. Willingboro, 431 U.S. 85, 97 S.Ct. 1614, 52 L.Ed.2d 155 (1977); Virginia Board of Pharmacy v. Virginia Consumers Council, 425 U.S. 748, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976). Brokers play a key role in the real estate market by linking buyers with sellers. Although brokers do “no more than propose a commercial transaction,” Pittsburgh Press Co. v. Human Relations Commission, 413 U.S. 376, 385, 93 S.Ct. 2553, 2558, 37 L.Ed.2d 669 (1973), their efforts doubtlessly aid in “the proper allocation of resources” through enhancing the “flow of commercial information.” Virginia Board of Pharmacy, 425 U.S. at 764, 96 S.Ct. at 1827. In serving the important societal goal of allocative efficiency, real estate solicitation merits some First Amendment protection.

The conclusion that plaintiffs’ commercial speech merits some First Amendment protection does not answer the harder question, namely, how much protection. The Supreme Court has stated that for purposes of First Amendment analysis, “Certain features of commercial speech differentiates it from other varieties of speech in ways that suggest that ‘a different degree of protection is necessary to insure that the flow of truthful and legitimate commercial information is unimpaired.’ ” Friedman v. Rogers, 440 U.S. 1, 10, 99 S.Ct. 887, 894, 59 L.Ed.2d 100 (1979). For this reason, the Court’s “decisions dealing with more traditional First Amendment problems do not extend automatically to this as yet uncharted area.” Id. at 11 n.9, 99 S.Ct. at 895 n.9. Further, the special characteristics of commercial speech may “allow [for] modes of regulation that might be impermissible in the realm of non-commercial expression.” Ohralik v. Ohio State Bar Association, 436 U.S. 447, 456, 98 S.Ct. 1912,1918, 56 L.Ed.2d 444 (1978).

*1070 In particular, the Court has noted that the traditional prohibition on prior restraints may not apply to regulation of speech which merely proposes a transaction. Virginia Board of Pharmacy, 425 U.S. at 772 n.24, 96 S.Ct. at 1881 n.24. The Court has also held that the overbreadth doctrine, a tool for judicial scrutiny of laws which implicate First Amendment interests, might not be applicable to commercial speech cases. Since two of plaintiffs’ three arguments for invalidating Ordinance 77-13 are that it imposes an unconstitutional prior restraint and is impermissibly overbroad, we think it necessary to explore the applicability of these two limiting doctrines with respect to commercial speech cases in general and the instant case in particular.

As a preliminary matter, we note that Ordinance 77-13 imposes a prior restraint on the flow of market information. The elements of a prior restraint are (1) the person desiring to engage in the communication must apply to a government agent prior to engaging in the desired communication; (2) the government agent is empowered to grant or deny the application on the basis of the content of the proposed communication; (3) approval of the application depends on the agent’s affirmative action; and (4) approval is not routinely granted but- is the result of the exercise of the agent’s judgment. Southeastern Promotions Ltd. v. Conrad, 420 U.S. 546, 554, 95 S.Ct. 1239, 1244, 43 L.Ed.2d 448 (1974); Cantwell v. Connecticut, 310 U.S. 296, 305, 60 S.Ct. 900, 904, 84 L.Ed. 1213 (1940). Each of these elements is present in Ordinance 77-13.

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Bluebook (online)
516 F. Supp. 1067, 1981 U.S. Dist. LEXIS 13396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-assn-of-realtors-v-village-of-bellwood-ilnd-1981.