Saturday, November 14, 2009

7th Circuit En Banc Upholds Cause of Action By Condo Owners Whose Mezuzah Was Banned

In an en banc rehearing in Bloch v. Frischholz, (7th Cir., Nov. 13, 2009), an 8-judge panel held that plaintiffs, who were Jewish condominium owners, could have a claim under two provisions of the federal Fair Housing Act for action by the condominium association in reinterpreting its rules to ban residents from placing mezuzot on their outside doors. The court held that if it can be shown that defendants acted with discriminatory intent, there would be a cause of action under 42 USC §3604(b) (anti-discrimination ban) and §3617 (ban on interference with fair housing rights), even though the discrimination occurred after the purchase of the condo units. Under Section 3604(b), there would be discrimination in the conditions of purchase because plaintiffs' in purchasing agreed to abide by conditions later imposed by the condominium board. In finding that the Fair Housing Act can support a claim for post-purchase discrimination, the eight judges rejected the 2-1 decision of a three-judge panel in July 2008. (See prior posting.) Today's Chicago Sun-Times reported on the decision.