Price v. Pelka, 81-3369

• Decision Date: 11 October 1982
• Docket Number: No. 81-3369,81-3369
• Citation: 690 F.2d 98
• Parties: Rose PRICE, Plaintiff-Appellant, v. Norbert PELKA; Gertrude Pelka; Audrey Pelka, Defendants-Appellees.
• Court: U.S. Court of Appeals — Sixth Circuit

Page 98

690 F.2d 98

Rose PRICE, Plaintiff-Appellant, v. Norbert PELKA; Gertrude Pelka; Audrey Pelka, Defendants-Appellees.

No. 81-3369.

United States Court of Appeals Sixth Circuit.

Argued June 24, 1982.

Decided Oct. 11, 1982.

Avery S. Friedman, Cleveland, Ohio, for plaintiff-appellant.

Lawrence B. Scully, Cleveland, Ohio, for defendants-appellees.

Before KEITH and MERRITT, Circuit Judges, and PHILLIPS, Senior Circuit Judge.

KEITH, Circuit Judge.

The United States District Court for the Northern District of Ohio vacated its award of attorney's fees to a prevailing party in this housing discrimination suit, and denied attorney's fees for certain post-trial motions. For the reasons discussed below, we hold that the district court abused its discretion.

FACTS

The defendant-appellees, Norbert and Gertrude Pelka, offered an apartment for rent in a newspaper advertisement. Plaintiff-appellant, Rose Price, responded to this advertisement and arranged an interview with the Pelkas. When Ms. Price arrived for the interview, she was informed that the apartment had already been rented. Ms. Price is black, and the Pelkas are white. Subsequently, Edward McNeeley, a white person, swore in an affidavit that the Pelkas offered him the same apartment after informing Ms. Price that it had been rented.

On October 23, 1980, Ms. Price filed a complaint in the United States District Court for the Northern District of Ohio, alleging violations of the Fair Housing Act, 42 U.S.C. § 3601 et seq. and 42 U.S.C. §§ 1981 and 1982. Ms. Price named Norbert, Gertrude, and Audrey Pelka as defendants. That same day, Ms. Price moved for and received a temporary restraining order ("TRO") prohibiting the defendants from showing, renting, or otherwise disposing of the apartment in issue.

On November 5, 1980, the court merged a hearing for a preliminary injunction with a trial on the merits. Prior to this hearing, the defendants and Ms. Price informed the district court that the defendants admitted their liability. Moreover, the defendants' counsel admitted their liability during his opening statement. At the hearing, Ms. Price testified that she was employed by the United States Postal System, that she was married, and that her husband was a plumber. She also testified that her two former landlords had each written letters stating that they would recommend her and her family very highly. Finally, she testified that her previous tenancy was terminated because the owners sold the house.

Immediately following the hearing, the district court found that the Pelkas had violated the Fair Housing Act and 42 U.S.C. §§ 1981 and 1982. The court awarded Ms. Price compensatory damages of $500, punitive damages of $1,500, and $800 as a reasonable attorney's fee. That same day, the Pelkas represented to the court that the apartment at issue would be made available to Ms. Price.

The Pelkas later refused to make their dwelling available to Ms. Price. On November 26, 1980, the district court ordered the Pelkas to allow Ms. Price to enter the apartment by December 1, 1980. When the defendants failed to comply with this order, the court held the Pelkas in contempt. The court also directed the United States Marshall to assist Ms. Price in obtaining access to the Pelkas' apartment.

On December 5, 1980, Ms. Price moved to set off her security deposit and first month's rent against the judgment previously awarded. The district court granted this motion. Subsequently, Ms. Price's attorney sought additional attorney fees for the post-trial motions. The Pelkas, however, objected to this fee request.

Subsequently, the Pelkas filed a motion for relief from judgment pursuant to Fed.R.Civ.P. 60(b), alleging that Ms. Price had committed perjury at the November 5 hearing. Specifically, they alleged that Ms. Price was not married, and that she had been evicted from her previous tenancy. The Pelkas attached an affidavit supporting their allegations. Relying upon these allegations, the district court revoked its previous award of punitive damages and its award of attorney fees. The district court also refused to grant Ms. Price attorney fees for the post-trial motions. The court did not vacate its judgment that Ms. Price prevailed on the merits of her claims arising under the Fair Housing Act and 42 U.S.C. §§ 1981 and 1982. Indeed, the district court reaffirmed its award of $500 as compensatory damages. Moreover, it did not order Ms. Price to vacate the Pelkas' apartment.

Ms. Price perfected this appeal.

WHETHER THE DISTRICT COURT ABUSED ITS DISCRETION

In making attorney fee awards in civil rights cases, "courts are no longer applying their historical equitable powers to devise an adequate remedy." Northcross v Board of Education of Memphis City Schools, 611 F.2d 624, 632 (6th Cir. 1979), cert. denied, 447 U.S. 911, 100 S.Ct. 2999, 64 L.Ed.2d 862 (1980). Instead, the award of attorney fees in civil rights cases is now a statutory remedy. Id. The standards for awarding attorney fees in cases arising under 42 U.S.C. §§ 1981 and 1982 are contained in the Civil Rights Attorneys Fee Awards Act of 1976, 42 U.S.C. § 1988, as amended. Section 1988 provides in pertinent part:

In any action or proceeding to enforce a provision of sections 1981, 1982 ... of this title, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney's fee as part of the costs.

42 U.S.C. § 1988 (Supp. IV 1980). Similarly, the standards for awarding attorney fees in cases arising under the Fair Housing Act are contained in 42 U.S.C. § 3612(c). Section 3612(c) provides:

(C) INJUNCTIVE RELIEF AND DAMAGES-LIMITATION-COURT COSTS-ATTORNEYS FEES

The court may grant as relief, as it deems appropriate, ... reasonable attorney fees in the case of a prevailing plaintiff: Provided, That the said plaintiff in the opinion of the court is not financially able to assume said attorney's fees.

42 U.S.C. § 3612(c) (1976). Thus, an award of attorney fees to a prevailing party under either 42 U.S.C. § 3612(c) or 42 U.S.C. § 1988 is within the district court's discretion.

In vacating the attorney's fee award for the trial, the district court reasoned as follows:

The true beneficiary of an award of attorney fees is the prevailing party. Where a party has vindicated his or her rights in a civil rights case of this nature, that party should be entitled to receive the additional benefit of having his or her counsel fees assessed against the wrongful party. However, where a party offers perjured testimony in order to support a claim of humiliation, anger, and embarrassment due to racial discrimination, an award of attorney fees to that party would be unjust. Notwithstanding the fact that the defendants admitted their liability prior to the trial, this Court does not find it appropriate to permit the plaintiff to benefit from an assessment of attorney fees against the defendants.

Ms. Price argues that the district court abused its discretion in vacating the attorney fee award for the trial on the merits. We agree.

The provisions of 42 U.S.C. § 1988 are more liberal than those of 42 U.S.C. § 3612(c). A prevailing party can recover attorney fees under section 3612(c) only if the district court finds that the party is not financially able to assume these fees. Section 1988, however, allows a prevailing plaintiff to recover without consideration of that party's financial condition. Ms. Price is clearly a prevailing party within the meaning of 42 U.S.C. § 1988 and 42 U.S.C. § 3612(c). She prevailed on the merits of her claim under the Fair Housing Act, and her claim under 42 U.S.C. §§ 1981 and 1982. Hanrahan v. Hampton, 446 U.S. 754, 100 S.Ct. 1987, 64 L.Ed.2d 670 (1980); Harrington v. Vandalia-Butler Board of Education, 585 F.2d 192 (6th Cir. 1978), cert. denied, 441 U.S. 932, 99 S.Ct. 2053, 60 L.Ed.2d 660 (1979). ¹

Ms. Price prevailed on the merits of her claims arising under both the Fair Housing Act and 42 U.S.C. §§ 1981 and 1982. We hold that she is entitled to benefit from the more liberal provisions of 42 U.S.C. § 1988. Woods-Drake v. Lundy, 667 F.2d 1198 (5th Cir. 1982). The language of section 1988 is permissive, therefore, an award of attorney fees is discretionary. See Marr v. Rife, 545 F.2d 554 (6th Cir. 1976). Our analysis focuses only on the issue of whether the district court abused its discretion in vacating the award under 42 U.S.C. § 1988.

Although the language of section 1988 is permissive, the court must exercise its discretion consistent with the congressional purpose underlying this statute. In enacting the Civil Rights Attorney's Fees Awards Act of 1976, Congress intended for prevailing parties to ordinarily recover attorneys fees. Congress expressly stated that the prevailing party "should ordinarily recover an attorney's fee unless special circumstances would render such an award unjust." S.Rep.No.94-1011, 94th Cong., 2d Sess. 4, reprinted in 1976 U.S.Code Cong. & Ad.News 5908, 5912, quoting Newman v. Piggie Park Enterprises, Inc., 390 U.S. 400, 402, 88 S.Ct. 964, 966, 19 L.Ed.2d 1263 (1968). See New York Gaslight Club, Inc. v. Carey, 447 U.S. 54, 63, 100 S.Ct. 2024, 2030, 64 L.Ed.2d 723 (1980) ²; Northcross, 611 F.2d at 633; Monroe v. County Board of Education of (Madison County, Tennessee), 583 F.2d 263, 265 (6th Cir. 1978).

There are no special circumstances in this case which would render an award of attorney fees unjust. It is undisputed that the Pelkas refused to rent their dwelling to Ms. Price solely because she is black. The Pelkas' liability for violating the Fair Housing Act and 42 U.S.C. §§ 1981 and 1982 was not affected in any way by Ms. Price's perjury. Ms. Price testified that she was married, that her husband was a plumber, and that she had received favorable references from her former landlords. Although the Pelkas established that this testimony was untrue, Ms. Price's testimony was totally irrelevant to the question...