U.S. v. City of Jackson, Miss.

Decision Date04 February 2004
Docket NumberNo. 03-60080.,03-60080.
Citation359 F.3d 727
PartiesUNITED STATES of America, Plaintiff-Appellee, v. CITY OF JACKSON, MISSISSIPPI, Defendant-Appellant.
CourtU.S. Court of Appeals — Fifth Circuit

Dennis J. Dimsey, Deputy Chief, Karl N. Gellert, U.S. Dept. of Justice, Civ. Rights Div., Washington, DC, Mitzi Dease Paige, Asst. U.S. Atty., Jackson, MS, for Plaintiff-Appellee.

Ronald DeWayne Bailey, Terry Charles Wallace, City Atty., Jackson, MS, for Defendant-Appellant.

Appeal from the United States District Court for the Southern District of Mississippi.

Before HIGGINBOTHAM, SMITH, and WIENER, Circuit Judges.

WIENER, Circuit Judge:

Defendant-Appellant City of Jackson, Mississippi (the "City") appeals the district court's order holding it in civil contempt for willfully violating a consent decree by denying a special use permit. As punishment for the City's actions, the district court ordered it to pay attorney's fees to the Plaintiff-Appellee United States of America (the "government"), as well as to the entity aggrieved by the City's denial. Specifically, the City now appeals the remedy fashioned by the district court. Finding no merit in any of the City's contentions on appeal, we affirm the district court's order in all respects.

I. FACTS & PROCEEDINGS

As the City acknowledges, the essential facts relevant to this appeal are undisputed. In 1996, the government sued the City, charging it with violating provisions of the Fair Housing Amendments Act ("FHAA").1 The government asserted that the City's zoning ordinances and policies violated the FHAA by failing to make the reasonable accommodations necessary to afford disabled persons equal housing opportunities. Together, the government and an intervenor that is no longer involved in this litigation succeeded in obtaining summary judgment against the City on the issue of liability. In 1997, the government and the City entered into a consent decree in lieu of proceeding to trial on the issue of remedies.

The consent decree, in language that tracks the FHAA's anti-discrimination provisions, prohibits the City from engaging in specified discriminatory housing practices. The consent decree also compelled the City to amend its zoning ordinance to permit group homes for disabled persons in residential districts zoned R-1.2 Most important for today's purposes, the consent decree contains express remedies for non-compliance:

Upon any failure by the City, whether willful or otherwise, to perform in a timely manner any act required by this Consent Decree, or in the event of any other material act by the City violating any provision of this Consent Decree, the United States or plaintiff-intervenor may move this Court to impose any remedy authorized by law or equity, including but not limited to an order requiring performance of an act, deeming an act to have been performed or awarding any damages, costs and/or attorneys' fees which may be occasioned by the City's violation of this Consent Decree. Notwithstanding the foregoing, the parties shall endeavor in good faith to resolve informally any difference regarding the interpretation of, or compliance with, this Consent Decree prior to bring[ing] such matters to the Court for resolution. (emphasis added).

In 1998, Christians in Action ("CA"), a Mississippi non-profit organization, applied to the City for a special use permit to relocate its shelter for abandoned and abused children to a residential area in the City zoned R-1. After CA's initial application was denied, it sought reconsideration to present evidence on the children's disabilities. The City directed CA to submit a new application, which CA did in May 2000.3

The next month, the City's Planning Board held an evidentiary hearing on CA's request. At that hearing, CA's attorney, James A. Peden, Jr., described the program and the need for the type of housing administered by CA. Mr. Peden also presented uncontradicted evidence on behalf of CA demonstrating that the City's grant of the required special use permit would have no adverse effect on the neighborhood or nearby property values. At the hearing, the Deputy City Attorney reminded the Planning Board of the history of the consent decree and of the City's obligations under it, emphasizing that the City could not simply deny the permit for such capricious reasons as, "`We want it,' or `We don't want it,' or the neighborhoods want it or don't want it." The Deputy City Attorney admonished that such grounds are "not legal criteria." Nevertheless, the Planning Board voted to deny CA's application for the special use permit.

In September 2000, the City Council considered CA's application in light of the record developed before the Planning Board. At this meeting, Mr. Peden reminded the City Council that the record included evidence demonstrating that the CA children were "handicapped" within the meaning of the FHAA. Several homeowners spoke out against granting CA the special use permit, as did some members of the City Council. For example, Councilmember Chip Reno articulated his opposition to granting the special use permit by denouncing the courts' interpretations of the FHAA:

Mr. Peden did a fantastic job explaining to you what the law was, and we have heard from our attorneys what the law has been in terms of its interpretation by the courts. I think that interpretation is unjust. I will explain why.

According to the interpretation, any residence basically in the City of Jackson R-1, R-1A, can be purchased and application petitioned for special use in order that a handicapped group home can go into that location. Therefore, Chip Reno next door to his home, someone could purchase that particular home in a neighborhood and petition for that type of use. And I submit that that is wrong. The judicial interpretation of this particular piece of legislation from Congress is absolutely, positively wrong.

Other members of the City Council expressed agreement, and it voted unanimously to deny CA's application. As a result, the government wrote to the City demanding an explanation for its denial. Instead of responding to the government, the City Council voted to reconsider CA's request.

In November 2000, the City Council conducted a second hearing on the matter. The City's attorney and Mr. Peden again reminded the City Council of the City's legal obligations, and again area landowners made their opposition known. At this hearing, Councilmember Leslie McLemore cautioned the City Council against violating the consent decree:

[T]he thing that I'm reminded of ... is that the consent decree is something that we should not take too lightly. I really don't think that our city ought to be in the business of defying consent decrees. Last week, I noted that the police department, the fire department, these departments are what they are because of consent decrees which we systematically followed and were forced to follow by the court. I'm also reminded that I obtained the right to vote in 1965 because somebody on the federal level said that African Americans should have a right to vote. I'm reminded that the 1964 Civil Rights Act was enacted because somebody on the federal level said that we should have our civil rights. I could go on and on. I think you understand my point.... I know I am where I am because someone prevailed external to Mississippi to make it possible for me to be where I am now, along with the struggle of people that fought and died and bled for the right to vote in this State.

Notwithstanding Councilmember McLemore's entreaty, the City Council denied the requested permit by a tie vote. The next month, the City responded to a letter from the government stating simply, "[i]t is the City of Jackson's position that its records and orders speak for themselves. It is the City's position that it acted properly in denying the above referenced petition."

In January 2001, the government filed a motion in the district court to have the City held in contempt for violating the consent decree. Just one week later, the City Council once more voted to reconsider CA's request for a special use permit — this time approving it.

The government filed a motion in the district court for summary judgment on the issue of the City's contempt. After conducting a hearing on the contempt motion, the district court found that the City had willfully violated the consent decree and held the City in contempt. Because the City had already issued a special use permit to CA, however, the court directed the government to file a motion for damages resulting from the contempt proceedings. The government requested attorney's fees at a rate of $125 per hour, as well as expenses for itself and attorney's fees for CA. In November 2001, at the hearing on the government's motion for fees, the City conceded that its denial of CA's special use permit violated both the consent decree and the FHAA. The City, nevertheless, opposed an award of attorney's fees to the government at a rate of $125 per hour and challenged any award of attorney's fees to CA.

In October 2002, the district court issued a comprehensive memorandum opinion and order, awarding the government some $39,000 in expenses and attorney's fees (calculated at a rate of $125 per hour) and ordering the City to pay CA damages of approximately $13,000, the total amount of the expenses, costs, and attorney's fees incurred by CA.

II. ANALYSIS

The City called this tune and lost. In a thinly-veiled attempt to avoid paying the piper, however, the City would now hide behind the American Rule of fee-shifting. The City—and those city officials who ignored the sound advice of the City's own attorney and Councilmember McLemore — have only themselves to blame for the sanctions imposed by the district court. Unfortunately, it is the taxpayers of the City who will have to suffer the consequences of the City's wasteful actions.

A. STANDARD OF REVIEW

We review contempt orders and...

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