Lin Hsi Hsu v. Human Rights Commission

536 N.E.2d 732, 180 Ill. App. 3d 949, 129 Ill. Dec. 682, 1989 Ill. App. LEXIS 2
CourtAppellate Court of Illinois
DecidedJanuary 9, 1989
DocketNo. 1—87—2592
StatusPublished
Cited by5 cases

This text of 536 N.E.2d 732 (Lin Hsi Hsu v. Human Rights Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lin Hsi Hsu v. Human Rights Commission, 536 N.E.2d 732, 180 Ill. App. 3d 949, 129 Ill. Dec. 682, 1989 Ill. App. LEXIS 2 (Ill. Ct. App. 1989).

Opinion

JUSTICE BUCKLEY

delivered the opinion of the court:

This appeal arises from a housing discrimination complaint filed in the Illinois Department of Human Rights by Eva and Michael Horton against Lin Hsi Hsu and Han Cheng Hsu. On July 3, 1986, the Human Rights Commission (Commission) entered an order finding that the Hsus’ denial of rental housing to the Hortons was motivated by racial discrimination, thereby reversing a prior order of an administrative law judge. Damages and attorney fees were subsequently assessed against the Hsus, and they now appeal. We affirm.

The following testimony was presented on September 4, 1984, before the administrative law judge of the Commission. On March 21, 1983, complainants Eva and Michael Horton, a black couple, responded to an ad in the Chicago Tribune offering for rent a single-family, five-bedroom dwelling at 7879 Northway Drive, Hanover Park, Illinois. After telephoning the owners of the house, Mr. and Mrs. Hsu, who are Chinese, the Hortons went to see it. They claim that when Mrs. Larkin, the white tenant, opened the door, she “hesitated” or “paused” for a few seconds with her mouth agape. She then left the couple waiting in the front hallway for about five minutes before showing the house.

Later that day, Mr. Horton phoned Mr. Hsu, expressed his interest in the house, and asked to fill out an application. When asked if the house was too large for him, Mr. Horton replied “no” because he currently owned a large home. He testified that Mr. Hsu told him he would call him back that evening, but when Hsu failed to do so, Horton called him a few days later and again expressed his desire to fill out an application for the house. After discussing the rent and Horton’s income, Hsu agreed to meet him on Saturday, March 26, at 6 p.m. at the Hortons’ home in Carol Stream.

On that Saturday, according to Horton, Hsu called him at 8 p.m., told him he got lost, and that, in any event, he had made a “judgment” to rent the house to another family. When Horton found out that the advertisement was still in the paper on Monday, March 28, he felt that he had been discriminated against, as did his wife after she learned on Saturday evening that the house had been rented. On cross-examination, Horton admitted that Hsu would have no way of knowing he was black unless told by his tenant.

Mr. Hsu denied that his decision not to rent to the Hortons was based on their race. He stated that during his first conversation with Mr. Horton, he was told that the couple only had a grandchild living with them. Hsu testified that he preferred to rent the house to a large family as they were less likely to be dissatisfied with the high utility bills and the upkeep of a large home. He explained that he did not make definite arrangements with the Hortons at that time because after discussing the rent, he thought the Hortons would want to look at the house again. When Mr. Horton called a second time, Hsu told him it was not his practice to take applications as he only owned one rental property, but he did agree to meet the Hortons on Saturday. He had previously made appointments to meet the Muhatims, an Indonesian family having four adults and three children, at 5 p.m., and the Zahitas, a white family of three, at 7 p.m. on that same Saturday.

While meeting with the Muhatims at a hotel in downtown Chicago, the Hsus orally agreed to rent to them for $600 per month rather than the $650 advertised rate. Mr. Hsu testified that he left the Muhatims at 6 p.m., and arrived at a gas station near Carol Stream at 6:30 or 7 p.m. at which time he called the Hortons because he was lost. When Hsu received a busy signal, he proceeded to the Zahita household, where he stayed for 30 minutes. He did not inform the Zahitas until the next day that the dwelling had been rented.

On Monday, March 28, the Hsus received a $100 deposit from Mr. Muhatim. By a document of the same date, the Hsus entered into a lease agreement with the Muhatims to commence April 1, 1983, although the Muhatims requested that the term of the lease not start until May 1,1983.

After hearing the above testimony, the administrative law judge (hereinafter ALJ) issued a recommended order and decision in favor of the Hsus (hereinafter respondents). Despite his finding that certain actions of respondents “cr[ied] out for an explanation,” the ALJ refused to impute knowledge of the Hortons’ (hereinafter complainants’) race to respondents. The judge stated:

“In opposition to the flimsy circumstantial evidence that the tenant advised Respondent of Complainants’ race, Respondent Lin Hsi Hsu testified, credibly, that he did not know of Complainants’ race at any relevant time. Thus, I must conclude that Complainant has not proven by a preponderance of the evidence that the tenant communicated to Respondent that Complainants were black.”

The ALJ noted, however, that but for this lack of proof, it “would be hardpressed to not find that Respondents violated the Human Rights Act.”

The Commission ultimately reversed this order and remanded the cause for a determination of damages and attorney fees, reasoning that the ALJ “made a mistake of law” in requiring direct proof of respondents’ knowledge of complainants’ race. Rather, the Commission ruled that given the fact that the tenant had ample opportunity to inform respondents of complainants’ race, the ALJ should have inferred a racial motive where respondents treated complainants differently than other similarly situated, nonblack applicants. The Commission, citing an evidence hornbook, wrote, “Where circumstantial evidence exists which makes it likely that something has taken place, a fact finder in a civil case may infer the event based upon the circumstantial evidence.” The Commission’s decision concludes:

“Thus, the Administrative Law Judge should have inferred knowledge of the Complainants’ race based upon the subse- • quent actions of the Respondents. Because the Administrative Law Judge did not make this inference, the Recommended Order and Decision cannot be accepted. Instead, the Commission finds that the denial of rental housing by the Respondents in this case was motivated by the Complainants’ race.”

Upon remand, the ALJ recommended an award of $2,000 to complainants for humiliation and embarrassment, and $1,907.85 as their attorney fees. The Commission modified the recommended order by increasing the attorney fees to $2,585.60, the amount initially sought by complainants plus costs subsequent thereto.

The thrust of respondents’ appeal is that the Commission erred in substituting its judgment for that of the ALJ, thereby violating its own standard of review embodied in section 8 — 107(E)(2) of the Illinois Human Rights Act (Human Rights Act), which directs the Commission to “adopt the hearing officer’s findings of fact if they are not contrary to the manifest weight of the evidence” (Ill. Rev. Stat. 1987, ch. 68, par. 8 — 107(E)(2)), and section 5300.1120 of the Illinois Administrative Code (56 Ill. Adm. Code 5300.1120 (1986)), which requires the same. Complainants and the Commission, in turn, citing Department of Corrections v. Adams (1986), 146 Ill. App. 3d 173, 496 N.E.2d 1138

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Bluebook (online)
536 N.E.2d 732, 180 Ill. App. 3d 949, 129 Ill. Dec. 682, 1989 Ill. App. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lin-hsi-hsu-v-human-rights-commission-illappct-1989.