Kormoczy v. Secretary, United States Department of Housing & Urban Development

53 F.3d 821
CourtCourt of Appeals for the Seventh Circuit
DecidedApril 28, 1995
DocketNo. 94-2526
StatusPublished
Cited by2 cases

This text of 53 F.3d 821 (Kormoczy v. Secretary, United States Department of Housing & Urban Development) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kormoczy v. Secretary, United States Department of Housing & Urban Development, 53 F.3d 821 (7th Cir. 1995).

Opinion

NORGLE, District Judge.

Petitioners seek review of a decision entered by an administrative law judge (“ALJ”) holding that Petitioners had violated the Fan-Housing Act. 42 U.S.C. §§ 3601-3631 (“Act”). The ALJ conducted a two-day hearing in January 1994 on the matter and held that Petitioners declined to rent an apartment to Marlene and Michael Briggs (the “Briggs”) due to their familial status. The ALJ issued an order to that effect on May 16, 1994, which became the final decision of the Secretary thirty days thereafter. 42 U.S.C. § 3612(h). This petition for review was filed timely on June 27, 1994. 42 U.S.C. § 3612(i)(2).

I.

In March 1991, Petitioners placed a sign on their apartment building, located at 2065 West Jarvis in Chicago, advertising that an apartment was for rent, listing the phone number of Ida Keszeg (“Keszeg”), one of the six owners. The Briggs attempted to rent an apartment in that building. The three story building contained six flats, two on each floor, of which five were rented and one was occupied by ’Piroshka Kormoczy (“Kormoc-zy”), mother of three of the owners. Two of the apartments were vacant in March 1991.

After making an appointment, the Briggs and their daughter, age six at the time, visited the apartment. Kormoczy showed an apartment to the Briggs located directly above her own apartment. Because Kormoc-zy does not speak english, an interpreter assisted in communicating with the couple. The Briggs asked Kormoczy whether having a child in the building would be a problem for her. Kormoczy responded that, although she did not wish to have children living above her, she did not have the authority to make the decision. Kormoczy had no ownership interest in the building, but she often shows the vacant apartments to those who inquire about them.

The Briggs requested an application, but Kormoczy said none was available at the time. Once home, Marlene Briggs called the phone number listed on the sign and asked whether she might have an application and whether children would be a problem. The woman who answered the phone said that applications were available and that children would pose no difficulty. Later that day, Michael Briggs returned to the building for an application. Kormoczy met Michael Briggs and, through the same interpreter, [823]*823stated that she did not want children living above her, but that it was not her decision as to whom the owners would rent.

The couple completed the application in two days. They returned the application to Kormoezy who then, without an interpreter, showed the couple an apartment located directly across from the one shown before— i.e., not above Kormoczy’s'apartment.

Approximately one week passed without a response to their application. When Marlene Briggs called regarding the status of her application, the woman who answered relayed that the application was not available. In the following weeks, Marlene Briggs made several other inquiries by telephone, but to no avail.

In April 1991, Marlene Briggs received a telephone call from co-owner Keszeg who explained that they denied their application because elderly people lived in the building and the owners did not want children living there. In addition, on September 6, 1991, Keszeg admitted to HUD Investigator John Meade that Kormoezy had told the Briggs that she did not want children living above her. At the hearings, however, Keszeg denied making such admissions and claimed that the reason for their refusal to rent concerned the bad credit history of the Briggs.

The seven Respondents are Piroshka Kor-moezy, Ida Keszeg, Arpad Keszeg, Michael Godollei, Irene Godollei, Frederick Kormoe-zy, and Rosa Kormoezy. Piroshka Kormoezy is the mother of Frederick Kormoezy, Ida Keszeg, and Irene Godollei. All except Pi-roshka Kormoezy own the apartment building in question.

II.

The final order of an agency will stand unless it is not legally or procedurally sound, or it is not supported by substantial evidence. 5 U.S.C. § 706(2). “Substantial evidence is ‘such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.’ ” Jancik v. Dept. of HUD, 44 F.3d 553, 555 (7th Cir.1995) (quoting Herron v. Shalala, 19 F.3d 329, 333 (7th Cir.1994)). Although the Court reviews the entire record, it may not decide the facts anew. Her-ron, 19 F.3d at 333. Congress allows only narrow review of agency decisions. Soules v. United States Dept. of Housing & Urban Dev., 967 F.2d 817, 821 (2d Cir.1992). “[A]n ALJ’s credibility determinations are entitled to considerable deference and will be overturned by a reviewing court only when extraordinary circumstances so require.” Carry Companies of Ill., Inc. v. NLRB, 30 F.3d 922, 926 (7th Cir.1994); Jancik, 44 F.3d at 556 (“We accord considerable deference to the credibility determinations of the ALJ.”).

In addition, the court is mindful that “[o]nce a trial has been conducted, this Court will not decide whether a plaintiff has met her burden of making a prima facie case, or whether a defendant has met the alternative burden of producing evidence of a legitimate rationale for discharge.” Castleman v. Acme Boot Co., 959 F.2d 1417, 1421 (7th Cir.1994) (reviewing an age discrimination jury trial held in the district court). “[T]he McDonnell Douglas burden shifting framework falls away once there has been a jury trial and verdict.” Watson v. Amedco Steel, Inc., 29 F.3d 274, 279 (7th Cir.1994). In an age discrimination case, this Court ruled that “[o]nce the case has been tried, however, the rules about the prima facie case, defendant’s response and methods of proof no longer are relevant.” Grohs v. Gold Bond Bldg. Products, 859 F.2d 1283, 1286 (7th Cir.1988); Pignato v. American Trans Air, Inc., 14 F.3d 342, 347 (7th Cir.1994) (“[Djespite certain apparent weaknesses revealed by the record in [Plaintiffs] prima facie case we leave without further comment the district court’s finding that he had established it.”).

The provision at issue is 42 U.S.C. § 3604(a) which proscribes the refusal to “rent after the making of a bona fide offer ... a dwelling to any person because of ... familial status.... ” Petitioners initially question whether the ALJ erred in holding that the Secretary satisfied his burden to prove that Petitioners had violated the Act.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
53 F.3d 821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kormoczy-v-secretary-united-states-department-of-housing-urban-ca7-1995.