Lindsay v. Yates

• Decision Date: 21 August 2009
• Docket Number: No. 08-3633.,08-3633.
• Citation: 578 F.3d 407
• Parties: Douglas LINDSAY Sr., et al., Plaintiffs-Appellants, v. Brent YATES, In his individual and official capacity, et al., Defendants-Appellees.
• Court: U.S. Court of Appeals — Sixth Circuit

578 F.3d 407

Douglas LINDSAY Sr., et al., Plaintiffs-Appellants, v. Brent YATES, In his individual and official capacity, et al., Defendants-Appellees.

No. 08-3633.

United States Court of Appeals, Sixth Circuit.

Argued: June 18, 2009.

Decided and Filed: August 21, 2009.

ARGUED:

Edward L. Gilbert, Law Offices, Akron, Ohio, for Appellants. Maura L. Hughes, Calfee, Halter & Griswold LLP, Cleveland, Ohio, for Appellees.

ON BRIEF:

Edward L. Gilbert, Michael J. Wright, Law Offices, Akron, Ohio, for Appellants. Maura L. Hughes, Jeffrey J. Lauderdale, Calfee, Halter & Griswold LLP, Cleveland, Ohio, James L. Childress, Calhoun, Kademenos & Childress Co., LPA, Mansfield, Ohio, for Appellees.

Before: KEITH, MOORE, and COLE, Circuit Judges.

OPINION

DAMON J. KEITH, Circuit Judge.

Plaintiffs-Appellants Douglas and Tina Lindsay filed a complaint against Defendants-Appellees Brent Yates and JoAnn Yates, among others, alleging racial discrimination in the sale of real property in violation of 42 U.S.C. §§ 1982, 3603, 3604 and Ohio Rev.Code Ann. § 4112.02(H)(1), racial discrimination through interference with contractual rights in violation of 42 U.S.C. § 1981, breach of contract, and "intentional, fraudulent, wanton, and discriminatory breach of contract." The district court dismissed the complaint, holding that the Lindsays had failed to plead facts establishing a housing discrimination claim under the McDonnell Douglas framework. This Court subsequently reversed the district court's finding that the pleadings were insufficient and remanded the case back for further proceedings. On remand, the district court, among other things, granted JoAnn and Brent Yates' motion for summary judgment and dismissed all federal and state claims against them, ruling that a jury could not find from the evidence that the property at issue "remained available" in satisfaction of the prima facie case for housing discrimination. The Lindsays timely appealed the district court's decision. For the following reasons, we REVERSE the district court's ruling granting the Yateses' motion for summary judgment and REMAND for further proceedings consistent with this opinion.

I.

This case arises from JoAnn Yates' ["JoAnn"] refusal to sell her family home at 2268 Eckert Road in Mansfield, Ohio to qualified African-American buyers Douglas and Tina Lindsay based on her alleged desire to keep the property "in the family." The property was acquired by JoAnn and her husband Gene Yates ["Gene"] during the 1970s and served as their residence until around 1994. Record on Appeal Volume I ("ROA") 1562. The Yateses had two children, Brent Yates ["Brent"] and DeborahYates ["Deborah"], who both grew up in the home. ROA 1561-62. After the parents moved out, Deborah lived there for approximately seven years. ROA 1567. The house has remained vacant since Deborah left. At the time of trial, the properties surrounding 2268 Eckert were either owned directly by members of the Yates family or by Mid Ohio Pipeline, a business entity owned by Brent. ROA 1489, 1502-03.

The district court summarized the time-line of relevant events:

Around May 2004, with the house vacant, Gene suggested to JoAnn that they sell the home. JoAnn [allegedly] resisted, wanting to "keep it in the family." [ROA 1572.] Ultimately, Gene prevailed, and he and JoAnn contacted defendant Carol Eicher ("Eicher") to list the property for sale. Eicher is a licensed realtor associated with defendant Sluss Realty Company ("Sluss"), a real estate brokerage. On August 8, 2004, Eicher met with Gene and JoAnn Yates. Gene and JoAnn's son, Brent Yates, was also present, as was his wife, Kim. Gene and JoAnn Yates agreed to list the property with Eicher through Sluss, and signed the listing agreement. The house was put on the market, with the listing to expire on February 8, 2005. Towards the end of September 2004, Gene Yates was diagnosed with lung cancer. [ROA 1572.] Sometime that fall, he and JoAnn went to Florida. During that time, Eicher would notify Brent and Kim Yates when she was showing the house.

On January 12, 2005, Gene Yates passed away. [Joann alleges] that [a]bout two weeks before his death, [Gene] and JoAnn had agreed to take the house off the market. [ROA 1590.] However, in the subsequent weeks before his death, Gene did not take the house off the market. When he died, the house passed to his estate. At that point Gene and JoAnn's children tended to a number of JoAnn's financial affairs, including the sale of the house. [ROA 1581-82.] Brent Yates took over responsibility for the sale of the home.... On February 8, 2005, Eicher called Brent Yates to tell him that the listing on his parents' property was about to expire and asked if she should speak with JoAnn. Brent indicated that would not be necessary because he had the authority to handle the paperwork; he subsequently signed a listing extension. During April 2005, plaintiffs Douglas and Tina Lindsay (the "Lindsays") visited the Yates' property with their real estate agent. The Lindsays subsequently submitted a written offer through their agent to Eicher, the Yates' agent. Eicher conveyed the offer to Brent, who rejected it. However, after some negotiation, the parties arrived at a purchase price of $175,000. On May 12, 2005, the Lindsays signed a purchase agreement, and Brent signed the next day.

On May 24, 2005, Sluss and Eicher informed the Lindsays that the sales contract would be terminated because JoAnn Yates could not bear to part with the property "for sentimental reasons." Based upon certain events that occurred between May 13, when Brent signed, and May 24, when JoAnn terminated the purchase agreement, the Lindsays believe that JoAnn's reason for terminating was pretext; they believe that JoAnn Yates did not want to sell them the property because they are African-American.

The exact timing of these intervening events is highly disputed.

The Lindsays' evidence is inconsistent. They allege that a "couple days" after Brent signed the purchase agreement, the Lindsays visited the property to identify the property lines, which is when they first met Brent Yates. A "couple days" after Brent signed the contract would be Saturday, May 15th. In deposition, Douglas Lindsay thought that the meeting had occurred on a Saturday or Sunday. [ROA 710.]

The Lindsays acknowledge that the contract was terminated on May 24th, which they allege was the day after they met Brent. However, prior to filing this lawsuit, the Lindsays filed a complaint with the United States Department of Housing and Urban Development in which they stated that the contract was terminated 2-3 days after they met Brent. [ROA 1772.]

Brent Yates' testimony is also inconsistent. He alleges that he met the Lindsays on a Thursday or a Friday, which would presumably be May 19th or 20th. [ROA 1504.] He also states that he was told that the Lindsays stopped by his office three or four days later, but did not meet with him at that time because he was tied up. [ROA 1504.] Brent further states that both of these events took place before he called his mother to tell her there was a buyer. [ROA 1505.] However, Brent also indicates that he told his mother about the purchase agreement within three to five days of his signing, meaning by May 18. [ROA 1500.] When Brent called his mother and told her about the purchase agreement, she [allegedly] said that she did not want to sell the property; it had been Gene who had wanted to sell, not her. [ROA 1500.]

The parties agree that the purchase agreement was terminated on May 24th.

Lindsay v. Yates (Lindsay III), No. 1:05CV1625, 2008 WL 1995355, at *2 (N.D.Ohio May 5, 2008) (brackets added).

Since the Yateses terminated the purchase agreement with the Lindsays, JoAnn, as Executrix of her late husband's estate, has not filed an extension of the real estate listing or otherwise made any effort to sell the home. ROA 658. The estate of Gene Yates remains the owner of 2268 Eckert. Id. After the commencement of the instant lawsuit in June 2005, JoAnn offered to sell the house to the Lindsays on the same terms as the original purchase agreement, but the Lindsays declined the offer. Lindsay III, 2008 WL 1995355, *3.

II.

The Lindsays filed a seven-count complaint in the Northern District of Ohio on June 16, 2005, against defendants JoAnn Yates, Brent Yates, the Estate of Gene Yates, Carol Eicher, and Sluss Realty Company. In relevant part, the complaint alleged racial discrimination in the sale of real property in violation of 42 U.S.C. §§ 1982, 3603, 3604 and Ohio Rev.Code Ann. § 4112.02(H)(1), as well as racial discrimination through interference with contractual rights in violation of 42 U.S.C. § 1981.¹ In considering the Fed.R.Civ.P. 12(c) Motion for Judgment on the Pleadings filed by JoAnn Yates, Brent Yates, and the Estate of Gene Yates, the lower court found that the Lindsays had failed to plead facts establishing each element of a prima facie case for racial discrimination under the McDonnell Douglas framework. Accordingly, the court dismissed all of the Lindsays' federal and state discrimination claims pursuant to Fed. R. Civ. 12(b)(6). Lindsay v. Yates ("Lindsay I"), No. 1:05 CV1625, 2006 WL 2988222, *3 (N.D.Ohio Oct.17, 2006). The court further declined to exercise supplemental jurisdiction over the remaining state contract claims. Id. at *4.

The Lindsays appealed dismissal of their claims under 42 U.S.C. §§ 1981, 1982, and 3604 to this Court. Applying Swierkiewicz v. Sorema N.A., 534 U.S. 506, 122 S.Ct. 992, 152 L.Ed.2d 1 (2002), we held that a housing discrimination plaintiff need not plead facts establishing a prima facie case under the McDonnell Douglas framework to state a claim for relief. Lindsay v. Yates ("Lindsay II"), 498 F.3d 434, 439-40 (6th Cir.2007). Thus, we reversed the lower court's ruling that the Lindsays' pleading was insufficient and remanded for further proceedings. Id. at 442.

Following remand, JoAnn and Brent...