United States v. Pelzer Realty Company, Inc.

377 F. Supp. 121, 19 Fed. R. Serv. 2d 381, 1974 U.S. Dist. LEXIS 8203
CourtDistrict Court, M.D. Alabama
DecidedJune 5, 1974
DocketCiv. A. 3284-N
StatusPublished
Cited by8 cases

This text of 377 F. Supp. 121 (United States v. Pelzer Realty Company, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Pelzer Realty Company, Inc., 377 F. Supp. 121, 19 Fed. R. Serv. 2d 381, 1974 U.S. Dist. LEXIS 8203 (M.D. Ala. 1974).

Opinion

ORDER

VARNER, District Judge.

This cause is submitted on remand from the United States Court of Appeals for the Fifth Circuit 484 F.2d 438 reversing the opinion of this Court and finding that the Defendant Thames as an individual and as agent of the Pelzer Realty Company, Inc., his wholly-owned corporation, violated 42 U.S.C. § 3604(1) in that Thames “offered to build identical houses for them (Barnett and Marshall) in another part of town, and when he threatened to force them into litigation before selling the houses” (parenthetical expression added); (2) in that Thames demanded “that Barnett and Marshall find other buyers before they could avoid payment of closing costs;” and (3) in that the Defendants “plac[ed] ‘sold’ signs in front of houses in order to foreclose the right of Barnett and Marshall to recontract for the houses.”

The Court of Appeals remanded the ease to this Court, calling attention to the fact that the parties and the District Court would be able to “work out a decree not inconsistent with this opinion in view of the spirit of compromise and reconciliation” demonstrated by the prayer in the complaint that the Defendants be enjoined to stop “discriminating against any person in relation to the sale of a dwelling on account of race, color, religion, or natural origin,” and “that the defendants neutralize whatever may have been the effects of their past noncompliance with the Act.” Pursuant to said order, this Court requested suggestions from the parties as to how the remand of the Court of Appeals should be implemented by this Court.

The Government proposed that this Court enter a sweeping injunction requiring that the Defendant Thames abide by the law hereafter and that he require, as a condition to doing business with him, that those doing business with him do numerous things indicating their approval and compliance with the law relating to discrimination in housing. The Defendants insist that no injunction should issue since no prior discrimination was proved and in view of the Defendants’ exemplary conduct since this suit was filed.

The Government also contends that damages should be awarded Barnett and Marshall for the effects of the Defendants’ past noncompliance with the Act. The Defendants point out that no damages were prayed for or proved in the original proceeding; that, had they been prayed for, the Defendants would have been entitled to and would have sought a jury trial of the issues in the case; and that the Defendants were not called upon to defend against claims for damages. In short, the Defendants contend that, absent pleading and proof thereof, *123 damages should not be awarded and, further, that insertion of the damage issue subsequent to the trial deprives the Defendants of their right to trial by-jury.

The Government relies heavily on United States v. Georgia Power Co., 474 F.2d 906 (5 CA, 1973). That case does not hold, as suggested by the Government, that a person is entitled to damages as a matter of law simply because of a violation of his rights and without pleading or proof of the same. The Court in that case simply held that back wages are equitable relief which a court may consider to compensate a victim of job discrimination, but it specifically holds that such :

“Back wages are not to be automatically granted whenever a person is ordered reinstated. The wages sought must be ‘properly owing to the plaintiffs.’ This requires positive proof that plaintiff was ordinarily entitled to the wages in question and, being without fault, would have received them in the ordinary course of things but for the inequitable conduct of the party from whom the wages are claimed.”

No such proof was offered in the trial of this case as to any damages. As pointed out by the Court of Appeals:

“A private suit by Barnett or Marshall would yield nothing to the two men.”

The Court of Appeals found that Barnett and Marshall had been treated with discrimination because of their color, but Barnett and Marshall were unable to purchase the homes when Mr. Thames did offer to make the sale. They were, therefore, not financially damaged by the infringement of their rights.

While damages, even nominal damages, are proper relief for a violation of the Act, in the opinion of this Court, an award of damages, where none were prayed for or specifically proved and when the pleadings gave the Defendants no hint that damages were to be litigated so that the Defendants might litigate the issue or consider demanding a jury, would be a strange twist of the law in order to accommodate the Plaintiff.

As to the Defendants’ right to a jury, where only equitable relief is sought, there is no right to a jury trial, whether the proceeding is under 42 U.S. C. § 3613, United States v. Luebke (D.C.Colo.1972), 345 F.Supp. 179; United States v. Bob Lawrence Realty, Inc. (D.C.Ga.1970), 313 F.Supp. 870; United States v. Reddoch (5 Cir. 1972), 467 F.2d 897, or whether it is under 42 U.S.C. § 3612, Cauley v. Smith (D.C.Va.1972), 347 F.Supp. 114. However, where damages are sought, there is a right to a jury trial as to that issue, Kelly v. Armbrust (D.C.N.D.1972), 351 F.Supp. 869; Rogers v. Loether (7 Cir. 1972), 467 F.2d 1110; Curtis v. Loether, 415 U.S. 189, 94 S.Ct. 1005, 39 L.Ed.2d 260. Ordi narily, where both damages and equitable relief are involved, the Court would try the equitable issues and the jury, the damage issue. Kelly v. Armbrust, supra. Since no damages were prayed for in this case, no right to a jury trial existed, and, therefore, no jury was requested or impaneled. To allow litigation of the damage issue after the trial offends the Defendants’ Seventh Amendment rights to a jury trial. Curtis v. Loether, supra.

Independent of the right to a jury trial, other considerations bar the granting of damages at this stage of this proceeding. Rule 54(c) of the Federal Rules of Civil Procedure has been consistently construed to allow a judgment granting relief inconsistent with the pleadings if the party “is entitled” thereto. While this rule has been generally utilized by the courts and implicitly approved, Publishers’ Association of New York City v. New York, etc., Printing, etc., Union (D.C.), 246 F.Supp. 293; Rank v. Krug (D.C.Cal.1950), 90 F.Supp. 773; Kahan v. Rosenstiel (3 Cir. 1970), 424 F.2d 161, cert. den., 398 U.S. 950, 90 S.Ct. 1870, 26 L.Ed.2d 290, on remand (D.C.), 315 F.Supp.

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Bluebook (online)
377 F. Supp. 121, 19 Fed. R. Serv. 2d 381, 1974 U.S. Dist. LEXIS 8203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-pelzer-realty-company-inc-almd-1974.