Gomez v. Chody
| Decision Date | 31 January 1989 |
| Docket Number | 87-3131,Nos. 87-1935,s. 87-1935 |
| Citation | 867 F.2d 395 |
| Parties | Jose GOMEZ, Rafaela Chavez, Norma Rodriguez, Hector Zurita, Rosendo Reyes, Arturo Montalio, Navin Patel, Ramirez Rosario Flores, Delia Sanchez, and HOPE, Inc., Plaintiffs-Appellants, v. Lance M. CHODY, Lance M. Chody, Ltd., CDA Designers/Builders/Developers, Inc., Management Associates, City of Wood Dale, County of DuPage, and United States Department of Housing and Urban Development, Defendants-Appellees. |
| Court | U.S. Court of Appeals — Seventh Circuit |
Kathryn E. Korn, Sidley & Austin, Chicago, Ill., for plaintiffs-appellants.
Robert J. Zaideman, Epstein, Zaideman & Esrig, P.C., Chicago, Ill., J. Patrick Jaeger, DuPage County State's Atty. Office, Nancy K. Needles, Chief, Civil Div., U.S. Atty. Office, Chicago, Ill., for defendants-appellees.
Before CUDAHY, RIPPLE, and KANNE, Circuit Judges.
This housing discrimination case is a consolidation of two appeals based on the same underlying facts. In the first appeal (87-1935), we must determine whether the district court erred in granting summary judgment to the defendants on all issues. In the second appeal (87-3131), we must determine whether the district court erred in denying the plaintiffs' motion for relief under Federal Rule of Civil Procedure 60(b). Because we find no merit to the contentions raised by the plaintiffs, we affirm the judgments of the district court.
The plaintiffs-appellants (plaintiffs) are persons of Hispanic descent. They filed a complaint in the district court on September 9, 1986 in which they alleged that the defendants-appellees (defendants) violated various federal and state housing laws with respect to the renovation of the Grove Street Apartments in Wood Dale, DuPage County, Illinois. Count I stated a violation of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), 42 U.S.C. Sec. 4601 et seq.: that the plaintiffs did not receive the relocation compensation and assistance required by the URA. Count II alleged a violation of Title VI of the Civil Rights Act of 1964, 42 U.S.C. Sec. 2000d et seq.: that the defendants discriminated against the plaintiffs based on their national origin. Count III alleged a violation of the Fair Housing Act of 1974 (FHA), 42 U.S.C. Sec. 3601 et seq.: for the same reason set forth in count II--discrimination based on national origin. Count IV alleged violations of the Housing and Community Development Act (HCDA), 42 U.S.C. Sec. 5301 et seq.: that the defendants denied the plaintiffs a reasonable opportunity to relocate in the immediate neighborhood. Count V alleged that the plaintiffs were direct and express third-party beneficiaries of contracts between Mr. Chody, Wood Dale, DuPage County, and the United States Department of Housing and Urban Development (HUD), and therefore were entitled to certain contractual benefits and protections. Count VI alleged various violations of state law for constructive eviction.
The plaintiffs also requested a temporary restraining order to prevent the defendants from: (1) continuing with rehabilitation of the apartments; and (2) further releasing or spending any public monies until the plaintiffs received all of the benefits and protections required by law. In addition, the plaintiffs sought to compel the defendants to restore their utilities, facilities, and services under the terms of their leases. The district court denied relief on the ground that the plaintiffs failed to demonstrate a sufficient likelihood of success on the merits.
Thereafter, the defendants collectively filed motions to dismiss and/or motions for summary judgment. Because various documents were filed with the motions to dismiss, the district court treated all the motions as motions for summary judgment. In a memorandum opinion and order dated April 14, 1987, the district court granted the defendants' motions for summary judgment with respect to all counts. The plaintiffs filed a timely notice of appeal on June 10, 1987.
At the time this action arose, the plaintiffs were all former or current residents of the Grove Street Apartments (the apartments) in Wood Dale. The apartments consisted of five three-story buildings containing seventy-three separate dwelling units. Prior to this action, ninety-five percent of the apartments' residents were Hispanic and this number accounted for more than sixty percent of the Hispanic population in Wood Dale.
In 1982, Wood Dale had applied to the County, through the Community Development Commission, for Community Development Block Grant (CDBG) funds in order to acquire and renovate the apartments. The following year, Wood Dale revised its application to seek CDBG funds only for rehabilitation of the apartments; the acquisition was to be made with private funds. Eventually, HUD approved a $1,084,472 grant of CDBG funds for the rehabilitation of the apartments. However, these funds were not utilized while Wood Dale searched without success for additional funds.
The apartments were in an advanced state of dangerous disrepair, unsanitary, and infested with insects and rodents. They violated Wood Dale's building code and were declared a public nuisance in September 1984. In February 1985, Wood Dale sought an injunction in state court ordering the apartments' owners to make necessary repairs or to demolish the apartments. On August 15, 1985, Wood Dale and the County entered into an Intergovernmental Agreement setting forth the rehabilitation obligations of each municipality with respect to the apartments.
In July 1986, the apartments were acquired by a private contractor, defendant Lance M. Chody. Mr. Chody purchased the apartments for $1,093,500--using private funds--under the condition that the CDBG funds would be available for the rehabilitation project. In connection with the purchase, Mr. Chody intervened as a defendant in Wood Dale's state court action and, on June 17, 1986, entered into a consent decree with all parties. As part of the decree, Mr. Chody agreed to comply with the requirements of the Intergovernmental Agreement which included, inter alia, that at least fifty-one percent of the renovated apartments would be occupied by low and moderate income persons at affordable rates.
The rehabilitation of the apartments involved gutting and renovation. To proceed with the project, all of the former residents of the apartments had to be displaced. On February 28, 1986, the HUD relocation specialist informed the County that Appellants' Ex. 7, DuPage County's Br. at 9. Therefore, pursuant to its own relocation policy, 1 the County adopted a plan to provide relocation assistance to those displaced by the rehabilitation of the apartments.
After the purchase of the apartments, Mr. Chody began demolishing portions of the structures. In addition, he turned off utilities to several apartments where tenants still resided. Approximately two weeks after the commencement of the construction work, Mr. Chody sent notices--drafted by the County--to inform tenants that they were being displaced. However, the County received several complaints because the notices were in English and the overwhelming majority of tenants were Spanish-speaking. Accordingly, Mr. Chody reissued the notices in Spanish and the County advised the remaining tenants of their relocation rights.
In this appeal, the plaintiffs challenge several aspects of the district court's grant of summary judgment. They raise issues under: 1) the Uniform Relocation Assistance Act (URA); 2) the Fair Housing Act (FHA); and 3) the Housing and Community Development Act (HCDA). We shall address each of these matters in the following subsections. However, at the outset, it would be useful to reiterate--indeed to emphasize--the standards that govern the district court's consideration of a motion for summary judgment. In Beard v. Whitley County REMC, 840 F.2d 405 (7th Cir.1988), we noted:
A motion for summary judgment should be granted only when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). In reviewing a grant of summary judgment, we must view the record and all inferences drawn therefrom in the light most favorable to the party opposing the motion. See United States v. Diebold, Inc. 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962); Illinois v. Bowen, 808 F.2d 571, 574 (7th Cir.1986). However, when confronted with a motion for summary judgment, a party who bears the burden of proof on a particular issue may not rest on its pleading, but must affirmatively demonstrate, by specific factual allegations, that there is a genuine issue of material fact which requires trial. See Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). The party must do more than simply "show there is some metaphysical doubt as to the material facts." Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986) (footnote omitted). "Where the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party, there is no 'genuine issue for trial.' " Id. at 587, 106 S.Ct. at 1356 (quoting, First Nat'l Bank of Arizona v. Cities Serv. Co., 391 U.S. 253, 288-89, 88 S.Ct. 1575, 1592, 20 L.Ed.2d 569 (1968)). "The court should neither 'look the other way' to...
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