Sherman Park Community Ass'n v. Wauwatosa Realty Co.

486 F. Supp. 838, 1980 U.S. Dist. LEXIS 10632
CourtDistrict Court, E.D. Wisconsin
DecidedMarch 31, 1980
DocketCiv. A. 77-C-541
StatusPublished
Cited by13 cases

This text of 486 F. Supp. 838 (Sherman Park Community Ass'n v. Wauwatosa Realty Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sherman Park Community Ass'n v. Wauwatosa Realty Co., 486 F. Supp. 838, 1980 U.S. Dist. LEXIS 10632 (E.D. Wis. 1980).

Opinion

DECISION AND ORDER

REYNOLDS, Chief Judge.

I. INTRODUCTION

This is an action for declaratory and injunctive relief and money damages brought by the Sherman Park Community Association (“SPCA”) and numerous named individuals. Defendants are all Milwaukee area real estate companies. Plaintiffs allege that defendants have engaged in illegal discrimination in the form of racial steering in the sale and rental of real estate. Such practices are said to violate 42 U.S.C. §§ 1981 and 1982 and the Fair Housing Act of 1968, 42 U.S.C. § 3601 et seq. Currently before the court are defendant Wauwatosa Realty Company’s motion for judgment on the pleadings and plaintiffs’ *840 motion for class certification. Also before the court are plaintiffs’ motions to compel discovery.

II. MOTION FOR JUDGMENT ON THE PLEADINGS A. Introduction

Defendant Wauwatosa Realty Company (“Wauwatosa”) raises two grounds in support of its motion for judgment on the pleadings. First, it argues that plaintiffs do not have standing to challenge the practices of the defendant real estate companies. Second, it argues that plaintiffs have failed to state a cause of action with respect to the allegations that have been made concerning Wauwatosa. Before considering the merits of these arguments, the Court must review the allegations contained in plaintiffs’ amended complaint, as those allegations must be taken as true and construed in the light most favorable to the plaintiffs. Chi-Mil Corp. v. W. T. Grant Co., 70 F.R.D. 352, 358 (E.D.Wis.1976).

Plaintiff SPCA is a nonprofit corporation, organized under the laws of Wisconsin, which is devoted, among other things, to the promotion of integrated housing in the Milwaukee area. The primary area serviced by the SPCA is the Sherman Park area which is bounded by North 35th Street on the east, North 60th Street on the west, Keefe Avenue on the north, and North Avenue on the south. Plaintiffs allege that the Sherman Park area is integrated but that the remaining residential areas in the City of Milwaukee and surrounding suburbs are primarily segregated.

Plaintiffs attribute this pattern of housing segregation in part to the discriminatory practices followed by the defendant real estate companies. The specific practices cited by plaintiffs are listed in paragraph 24 of the amended complaint:

“a. refusing to show and/or discouraging black or interracial homeseekers from purchasing homes in white neighborhoods;
“b. refusing to show and/or to offer to show as many houses to black or interracial homeseekers as to white prospective homeseekers regardless of the actual availability of houses for sale in the price range and area requested;
“c. aggressively pursuing white home-seekers to maximize the possibilities of their purchasing houses in the white communities specified above while making little or no effort to similarly encourage black homeseekers;
“d. directing blacks to houses in predominately black neighborhoods; and
“e. refusing to show and/or discouraging whites from purchasing homes in predominately black or interracial neighborhoods.”

The complaint goes on to detail numerous specific instances of the above practices involving each of the defendants. These violations were uncovered by persons acting as “testers,” that is, by persons posing as genuine homeseekers for the purpose of comparing the treatment afforded to persons of different races. Thirty-nine persons acted as testers during the course of the SPCA investigation and are named as individual plaintiffs in this lawsuit.

Plaintiffs allege that as a result of defendants’ discriminatory practices, they have illegally been denied access to available housing on the basis of race and that they have been denied the social benefits of living in an integrated community. Plaintiffs seek to enjoin defendants from engaging in future racial steering and also seek to compel them to take affirmative steps to remedy the effects of their past discrimination. Plaintiffs also seek actual and punitive damages.

B. Standing

Defendants argue that plaintiffs have not alleged sufficiently specific injury-in-fact to confer upon them standing to litigate the above claims. Any discussion of standing in the context presented by this case must begin with Gladstone Realtors v. Village of Bell wood, 441 U.S. 91, 99 S.Ct. 1601, 60 L.Ed.2d 66 (1979). Plaintiffs in Bellwood were “testers” who attempted to determine whether defendant real estate companies were engaged in racial steering. Having *841 determined that defendants were indeed engaged in steering, plaintiffs commenced an action in federal district court, claiming that defendants had violated 42 U.S.C. § 3612 and 42 U.S.C. § 1982. The complaint alleged that defendants followed a practice of steering black homeseekers toward an integrated area of Bellwood, some twelve by thirteen blocks in dimension, and away from predominately white areas. Whites, on the other hand, were steered away from the integrated area of Bellwood.

On defendants’ motion for summary judgment, the district court held that plaintiffs lacked standing to challenge defendants’ discriminatory practices. The Seventh Circuit Court of Appeals reversed, Village of Bellwood v. Gladstone Realtors, 569 F.2d 1013 (7th Cir. 1978), holding that plaintiffs had standing on the basis of Trafficante v. Metropolitan Life Insurance Co., 409 U.S. 205, 93 S.Ct. 364, 34 L.Ed.2d 415 (1972), which held that white residents of a segregated apartment complex had standing to bring suit under 42 U.S.C. § 3610 in order to challenge the denial of the their right to live in an integrated community. The Supreme Court granted certiorari and, with one imitation noted below, affirmed.

The Court noted initially that Congress intended to confer standing in suits brought pursuant to 42 U.S.C. §§ 3610 and 3612 to the fullest extent permitted by Article III of the United States Constitution.

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Bluebook (online)
486 F. Supp. 838, 1980 U.S. Dist. LEXIS 10632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sherman-park-community-assn-v-wauwatosa-realty-co-wied-1980.