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Factual and Procedural Background

This case arises from an alleged housing discrimination incident under 42 U.S.C. § 1982. Plaintiff D'Ann Laudon responded to an apartment rental advertisement placed by defendant Fred Loos in December 1986. After submitting a deposit and reaching a rental agreement, Laudon disclosed that her stepfather and friends were black. Loos informed her that black visitors would not be permitted due to neighborhood concerns. Finding this condition unacceptable, Laudon declined to rent the apartment. Loos denied discriminatory intent, but his denial was found not credible. Additional evidence included testimony from testers who experienced discriminatory statements from Loos. Laudon testified to emotional distress caused by the incident and that Loos did not return her $50 deposit. The matter was tried before the Court on April 7, 1988.

Legal Issues Presented

  1. Whether defendant Fred Loos violated 42 U.S.C. § 1982 by discriminating against plaintiff D'Ann Laudon in the rental of private housing based on racial association.
  2. Whether plaintiff is entitled to damages and return of her deposit as a result of the discriminatory conduct.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Havens Realty Corp. v. Coleman, 455 U.S. 363 (1982) Definition and standing of testers to prove discriminatory housing practices. Tester evidence was accepted as valid proof of discriminatory conduct by Loos.
Zuch v. Hussey, 394 F. Supp. 1028 (E.D. Mich. 1975) Admissibility of tester evidence to prove discrimination. Supported admission of tester reports as evidence of discrimination.
Johnson v. Jerry Pals Real Estate, 485 F.2d 528 (7th Cir. 1973) Tester evidence as often the only means to prove unlawful conduct. Reinforced reliance on tester testimony in this case.
Trafficante v. Metropolitan Life Ins. Co., 409 U.S. 205 (1972) Testers' standing to sue under the Fair Housing Act. Confirmed the legitimacy of tester involvement in housing discrimination claims.
42 U.S.C. § 1982 Prohibition against racial discrimination in property transactions. Provided the statutory basis for plaintiff's claim and relief.
Jones v. Alfred H. Mayer Co., 392 U.S. 409 (1968) Recognition of cause of action under § 1982 for discrimination in housing. Supported plaintiff’s claim that § 1982 applies to private housing discrimination.
Woods-Drake v. Lundy, 667 F.2d 1198 (5th Cir. 1982) Application of § 1982 to denial of housing based on association with blacks. Used to find that Loos discriminated by denying housing due to plaintiff’s association with black individuals.
Bills v. Hodges, 628 F.2d 844 (4th Cir. 1980) Support for § 1982 claims involving racial discrimination in housing. Referenced as part of the legal framework for discrimination claims.
United States v. Wood, 780 F.2d 955 (11th Cir. 1986) Interpretation of § 1982 and related housing discrimination laws. Noted to reinforce the statutory protections against racial discrimination.
Walker v. Pointer, 304 F. Supp. 56 (N.D. Texas 1969) Seminal case recognizing racial discrimination in housing as actionable under § 1982. Provided historical precedent for the claim.
Lamb v. Sallee, 417 F. Supp. 282 (E.D. Ky. 1976) Application of § 1982 to discriminatory rental practices. Supported the Court’s recognition of discriminatory conduct in rental arrangements.
Sullivan v. Little Hunting Park, Inc., 396 U.S. 229 (1969) Whites have standing to sue under § 1982 for racial discrimination. Confirmed plaintiff’s standing despite being white.
Memphis v. Greene, 451 U.S. 100 (1981) § 1982 encompasses every racially motivated refusal to rent or sell. Supported the broad scope of § 1982 protections applied here.
Jordan v. Dellway Villa, 661 F.2d 588 (6th Cir. 1981) Damages for embarrassment and humiliation from housing discrimination. Guided the Court’s award of damages to plaintiff.
Shaw v. Cassar, 558 F. Supp. 303 (E.D. Mich. 1983) Recognition of emotional damages in housing discrimination claims. Supported the compensatory damages awarded.
42 U.S.C. § 1988 Attorney's fees provision in civil rights cases. Referenced regarding the allocation of attorney’s fees to plaintiff’s counsel.
United States v. Hathaway, 798 F.2d 902 (6th Cir. 1986) Proper foundation for admission of business records. Supported admission of tester reports as business records.
Estate of Shafer v. Comm’r of Internal Revenue, 749 F.2d 1216 (6th Cir. 1984) Statements by party-opponents as admissions. Used to admit Loos’s statements in tester reports as admissions.

Court's Reasoning and Analysis

The Court found that defendant Loos discriminated against plaintiff Laudon by conditioning the rental on her exclusion of black visitors, effectively denying her housing because of her association with black individuals. The Court rejected Loos's denial of discriminatory intent as not credible, relying on plaintiff’s testimony, Loos’s own statements, and the testimony of testers who encountered similar discriminatory conduct. The Court applied the statutory mandate of 42 U.S.C. § 1982, which guarantees equal rights in property transactions regardless of race, and noted that this statute independently supports a cause of action for such discrimination. The Court referenced binding precedent establishing the admissibility and relevance of tester evidence and affirmed plaintiff’s standing despite her race. Damages for humiliation and embarrassment were awarded based on established case law, with the amount set at $1,550, considering defendant’s modest means and the requirement to pay attorney’s fees under 42 U.S.C. § 1988. The Court ordered return of the $50 deposit and directed entry of judgment accordingly.

Holding and Implications

The Court held that defendant Fred Loos engaged in unlawful racial discrimination in violation of 42 U.S.C. § 1982 by denying plaintiff D'Ann Laudon the right to rent an apartment due to her association with black individuals. The Court awarded Laudon $1,550 in damages for humiliation and embarrassment and ordered the return of her $50 deposit. Additionally, the Court acknowledged that plaintiff is entitled to attorney’s fees under 42 U.S.C. § 1988 and directed counsel to follow local rules regarding such fees.

The direct effect of this decision is a monetary judgment in favor of plaintiff and a reaffirmation of the protections afforded by § 1982 against housing discrimination based on racial association. No new legal precedent was established beyond the application of existing law to the facts presented.

D'Ann LAUDON, Plaintiff, v. Fred LOOS, Defendant.

MEMORANDUM AND ORDER

COHN, District Judge.

I.

This is a housing discrimination case, 42 U.S.C. § 1982, which was tried to the Court on April 7, 1988. The proofs show that plaintiff, D'Ann Laudon (Laudon), answered a classified advertisement for an apartment placed in the Macomb Daily newspaper by defendant, Fred Loos (Loos), on December 14, 1986. Following up on a personal conversation with Loos's wife during which Laudon submitted a $50 deposit, she met with Loos on December 16, 1986 to complete the rental arrangement. After reaching an agreement on the rental, Laudon, a caucasian, asked Loos if he was prejudiced and told him that her stepfather and some of her friends were black. Loos responded by telling Laudon that she could not have blacks visit the apartment since he would have trouble with the neighbors. He told Laudon that she could move in, but could have no black visitors. Deeming this condition on the apartment unacceptable, Laudon declined to rent it.

While Loos denies he exhibited a discriminatory animus towards blacks in his conversation with Laudon, the denial was not credible. At a deposition, Loos said to Laudon: "You'll be sorry; you better watch out."

A tester from the Fair Housing Center testified to an effort to rent the apartment from Loos. In a telephone conversation, Loos asked the tester if she was white and said he would not rent to blacks because of a concern about vandalism. He also told the tester that people in his community do not rent to blacks and that if she referred a friend to him in the event she did not want the apartment, she should be sure the referral was not black.

In Havens Realty Corp. v. Coleman, 455 U.S. 363, 373, 102 S.Ct. 1114, 1121, 71 L.Ed.2d 214 (1982), the Supreme Court defined "testers" as individuals who, without an intent to rent or purchase a home or apartment, pose as renters or purchasers for the purpose of collecting evidence of unlawful steering practices, i.e., directing prospective buyers or lessees to different areas of the community according to their race.
The evidence resulting from the experience of testers is admissible to show discriminatory conduct on defendant's part. Zuch v. Hussey, 394 F. Supp. 1028, 1051 (E.D.Mich. 1975) (and cases cited therein); Johnson v. Jerry Pals Real Estate, 485 F.2d 528 (7th Cir. 1973) (tester evidence often may be the only available means to prove the unlawful conduct). Indeed, in Trafficante v. Metropolitan Life Ins. Co., 409 U.S. 205, 93 S.Ct. 364, 34 L.Ed.2d 415 (1972), and Havens Realty, supra, testers were held to have standing to sue in their own right under sections 810(a) and 804(d) of the Fair Housing Act of 1968, 42 U.S.C. § 3610(a), 3604(d).

The reports of two additional testers, admitted as business records of the Fair Housing Center, FRE 803(6) display a discriminatory animus by Loos towards blacks in his conversation with them. When asked on the witness stand, "Did you ask Celine Belanger [a tester] what her race was?", Loos responded:

See United States v. Hathaway, 798 F.2d 902, 905-06 (6th Cir. 1986) (when proper foundation has been laid). Loos's statements contained in the reports are admissions by a party-opponent, FRE 801(d)(2). See Estate of Shafer v. Comm'r of Internal Revenue, 749 F.2d 1216, 1219 (6th Cir. 1984).

A. I may have.

Q. Is that a normal practice of yours?

A. I don't know. It depends upon the circumstances, whatever's there. It's a — it doesn't make a difference.
Q. If it doesn't make a difference, why then did you ask?
A. Well' [sic] I think sometimes understanding a person's needs is greatly desired. Somebody else may have a lot more needs than the other person. However, I try to put a good portion — a person's balance into a subjective analysis of do they really need the place or possibly is it right for them, as well as right for me to offer it to them because sometimes people have different opinions of what they want or what there's [sic] looking for as a — and I have a lot of telephone calls from many blacks that are on the complete wrong end of it, and they think that I have three bedrooms and whatever, or they can't afford it and a lot of things like that. It's something that I try to put forth straight like cost of money or whatever it is that we can both identify and be a mutual line. If it's something that they's — they would like to be known I have nothing to hide.

Laudon testified as to her humiliation and embarrassment regarding the incident and that she was so distraught over Loos' attitude she did not work the following day. Loos did not return the $50 deposit.

II.

42 U.S.C. § 1982 reads:

All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold and convey real and personal property.

The statute's stricture is independent of Title VIII of the Civil Rights Act of 1968, 42 U.S.C. § 3601, et seq., and confers a cause of action on a person discriminated against in the sale or rental of private housing, Jones v. Alfred H. Mayer Co., 392 U.S. 409, 88 S.Ct. 2186, 20 L.Ed.2d 1189 (1968), including incidents of denial of housing to whites because of their association with blacks. Woods-Drake v. Lundy, 667 F.2d 1198, 1201 (5th Cir. 1982); Bills v. Hodges, 628 F.2d 844 (4th Cir. 1980); United States v. Wood, 780 F.2d 955, 961 n. 17 (11th Cir. 1986); Walker v. Pointer, 304 F. Supp. 56 (N.D.Texas 1969) (seminal case); Lamb v. Sallee, 417 F. Supp. 282, 284 (E.D. Ky. 1976). See generally, Sullivan v. Little Hunting Park, Inc., 396 U.S. 229, 237, 90 S.Ct. 400, 404, 24 L.Ed.2d 386 (1969) (whites have standing to sue under § 1982); Memphis v. Greene, 451 U.S. 100, 101 S.Ct. 1584, 67 L.Ed.2d 769 (1981) (§ 1982 encompasses every racially motivated refusal to rent or sell.)

III.

Loos clearly discriminated against Laudon by effectively denying the apartment to her because her stepfather was black and she intended to entertain black friends. See Woods-Drake, 667 F.2d at 1201. Laudon suffered damages as a consequence of the discrimination in the form of embarrassment and humiliation, for which she is entitled to compensation. Id. at 1203; Jordan v. Dellway Villa, 661 F.2d 588, 594 (6th Cir. 1981); Shaw v. Cassar, 558 F. Supp. 303, 315 (E.D.Mich. 1983). She is also entitled to a return of the $50 deposit.

The amount of Laudon's damages lies in the sound discretion of the Court and is essentially intuitive. The Court finds Laudon's damages to be $1,550. Loos is a person of modest means and the damages awarded should not be so large as to oppress him, since he must also pay Laudon's attorney's fees. 42 U.S.C. § 1988.

The deputy clerk will enter judgment in favor of Laudon in the amount of $1,550. As to attorney's fees, counsel are directed to Local Rule 17(n).

SO ORDERED.

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Comments

LAUDON v. LOOS, (E.D.Mich. 1988)
(Apr 22, 1988)