Michigan Protection & Advocacy Service, Inc. v. Babin

18 F.3d 337, 1994 U.S. App. LEXIS 3533, 1994 WL 59760
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 2, 1994
DocketNo. 92-2073
StatusPublished
Cited by7 cases

This text of 18 F.3d 337 (Michigan Protection & Advocacy Service, Inc. v. Babin) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michigan Protection & Advocacy Service, Inc. v. Babin, 18 F.3d 337, 1994 U.S. App. LEXIS 3533, 1994 WL 59760 (6th Cir. 1994).

Opinion

BOGGS, Circuit Judge.

The plaintiffs filed several civil rights claims against the defendants, alleging that the defendants had denied and/or interfered with the plaintiffs’ right to equal access to housing. The plaintiffs claim that their right [340]*340to housing was violated when a house owner, who was negotiating with a state agency to rent the house as a group home for mentally disabled adults, sold the house at a profit to neighbors of the property. The plaintiffs allege that the seller’s motivation for selling and the neighbors’ motivation for buying the house were discriminatory. The .plaintiffs brought suit against the seller, a real estate agency, and the group of neighbors who helped raise the money to purchase the property.

On a motion for summary judgment, the district court ruled against the plaintiffs on three separate grounds. The court found that the defendants (1) did not discriminate or.otherwise make unavailable a dwelling to the plaintiffs; (2) did not discriminate against the plaintiffs in the course of a real estate-related transaction; and (3) did not interfere with the exercise and enjoyment of plaintiffs’ right to fair housing. 799 F.Supp. 695 (E.D.Mich.1992). The district court also dismissed the plaintiffs’ 42 U.S.C. §§ 1985 and 1986 claims, their pendent state claims, and denied their cross-motion for summary judgment. Ibid. We hold that a proper interpretation of the text of the Fair Housing Amendments Act of 1988 does not reach the actions of the defendants in this case and we therefore affirm the district court’s grant of summary judgment for the defendants.

I

In May 1988, the defendant Florence Hammonds was working as a real- estate agent for Century 21 Town and Country Realty (“Century 21”). At that time, a couple listed their house (“24 Mile Road property” or “the house”) with Century 21 and Hammonds marketed the property on their behalf. After eight months on the market, however, Hammonds had not sold the house.

In November 1988, while acting as the broker for the house, Hammonds contacted the Macomb-Oakland Regional Center (“MORC”), a state agency. Hammonds asked MORC if it would be interested in leasing the property as a group home for mentally disabled adults if she purchased it. MORC indicated that it was interested in leasing the property.

In early February 1989, Hammonds purchased the house for $95,000. She paid a broker’s commission to Century 21 as the buyer, but recouped part of the commission as the real estate agent. Hammonds also took out a home equity loan and a mortgage to finance the purchase.

According to Hammonds, in March 1989 MORC indicated that it would execute a written lease and begin paying rent to Ham-monds by the middle of May 1989. The leasing arrangements, however, did not progress ■ as. quickly as planned. In April 1989, MORC informed her that the lease could not be executed until July 15, 1989, because MORC was still waiting for various state agencies to approve the arrangement.

Meanwhile, on April 26, MORC officials sent out a letter to residents in the vicinity of the 24 Mile Road property to inform them that the house would be used as a group home. On April 28, 1989, Peggy Babin, a resident. of the area, called Hammonds to arrange a meeting with her. On April 29, 1989, Babin and five other neighbors met with Hammonds at Hammonds’s house to discuss the lease. At the meeting, Ham-monds attempted to allay the neighbors’ fears about having a group home in their neighborhood, but she also insisted on going through with her lease with MORC.

The neighbors1 then began a campaign to prevent the property from becoming a group home. Peggy Babin organized a petition drive to stop the group home, contacted several newspapers about the drive, and prepared a “mailing” about group homes. This mailing included 1) a newspaper article about a resident of a group home who had raped a nine-year old girl; 2) a list of addresses of people to write to express concern about the group home; 3) MORC’s April 26 letter with a note indicating that MORC was talking about a group home such as the one discussed in the enclosed newspaper article; 4) [341]*341a sheet entitled “Group Homes: Things You Should Know” that stated that the neighborhood would no longer be safe and property values would plummet if a group home was situated in the neighborhood; and 5) form letters to send to Century 21 and MORC to express concern about the group home.

After the neighbors began their petition drive, Hammonds initiated a conversation with John Kersten, the owner and sole shareholder of Century 21. Hammonds mentioned that she was concerned about the reaction of the neighbors to the proposed use of the 24 Mile Road property. Kersten indicated that Hammonds would have to handle the situation herself.

On the morning of May 12, Hammonds met with MORC representatives about hastening the leasing arrangement. According to Hammonds, the representatives promised to inquire about the delay in the approval of the lease and to call her that same day with an answer. They did not call her. Also, on May 12 a town meeting was held and approximately one hundred people showed up to express their concerns about the group home. Hammonds did not attend the meeting.

On May 13, Nosh Ivanovic offered Ham-monds $100,000 for the house. On May 15, Hammonds made a counteroffer of $104,000. Ivanovic was unable to raise the additional cash, so Scott Babin provided the funds. Scott Babin, with the help of Paul Hebert, then solicited funds from the neighbors to offset his donation to Ivanovic. Thomas For-tin donated $500.

The closing for the 24 Mile Road property took place on May 19. No one from Century 21 was at the closing and Hammonds did not pay a commission to the agency. Ham-monds, however, used closing documents bearing the Century 21 logo, and the forms were pre-printed with Kersten’s signature as the broker for the sale.

Based on these facts, the plaintiffs filed this suit against Hammonds, Kersten, Century 21, and the neighbors. The plaintiffs allege that each of the defendants violated 42 U.S.C. § 3604(f)(1), which makes it illegal for a person to discriminate in the sale or rental, or to otherwise make unavailable or deny a dwelling to a person because of a disability. The plaintiffs also contend that Hammonds, Kersten, and Century 21 discriminated against the plaintiffs in a real estate-related transaction, in violation of 42 U.S.C. § 3605. Finally, the plaintiffs claim that all of the defendants interfered with the plaintiffs in the exercise of their rights to housing, in violation of 42 U.S.C. § 3617.

II

This court reviews de novo the district court’s grant of the defendants’ motion for summary judgment. Baggs v. Eagle-Picher Indus., Inc., 957 F.2d 268, 271 (6th Cir.), cert. denied, — U.S. -, 113 S.Ct. 466, 121 L.Ed.2d 374 (1992).

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18 F.3d 337, 1994 U.S. App. LEXIS 3533, 1994 WL 59760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-protection-advocacy-service-inc-v-babin-ca6-1994.