*2 FLAUM, Before POSNER and Circuit NICHOLS,* Judges, and Senior Circuit Judge.
PER CURIAM. opinion is unanimously The court of the Judge that the decision of District Moran summary judgment dismissing peti- on tion, ought affirmed, judgment and is to that entered effect. is The court also unanimously opinion deci- sion denying same district judge, prevailing parties, ought costs to the to be reversed, judgment and is entered The judges panel effect. of this differ and, in stating somewhat their reasons therefore, the sepa- views of each rately appended. However, Judge Posner joins Judge opinion except Nichols’ Part B, except IV part, may opinion therefore be taken as the court. Affirmed in No. 83-1604 and re- in No. versed 83-2289.
NICHOLS, Judge. Senior Circuit This action brought was in the Northern by eight District Illinois individuals and voluntary community organization, former Devel- Urban (HUD) opment Hills, Secretary Carla vari- regional officials, ous and local HUD Rist, Management Seward Area Broker. longer Hills is no Secretary, but successors been formally par- substituted as ties. Plaintiffs originally sought injunctive relief now seek money damages only, but injury on account of they allege they -suf- nearby fered as residents because defend- ants allowed certain Chicago residential acquired property foreclosure be va- cant hazard to safety héalth and Block, McCarthy, Thomas J. community Jenner & acquisition, residents from No- Ill., Chicago, plaintiffs-appellants, through disposal, July 19, vember cross-appellees. contrary law, law, all to Federal state * Nichols, Jr., Philip sitting by designation. Honorable of the United Circuit, Appeals Court Federal States for the case, occurring far as ordinance, was so were in Mr. Rist’s what municipal complaints. plaintiffs’ was ear- A motion to dismiss aware his contract. denied, holding passed over
ly originally property considered the assigned as error because here $40,000, market value of less had a fair relief issue injunctive party’s appeal. $17,389, repairs making it avail- needed at since the dis- mooted been considered has $22,600. spent at Some $285 able shortly after the suit posal of the pursuant Mr. Rist’s invoic- maintenance *3 filed. was July paid all the taxes. On es. HUD 10, 1983, Judge District March 8 and On city property sold the HUD Moran, having him cross-motions before could, $1, applicable pro- which under stipula a fact summary judgment and only appraised gram, done if the value be granted de signed by parties, all the tion $5,000. Chicago conveyed it to was peti motion and dismissed fendant’s the South Shore Senior Citizens Associa- tion, defendants their costs. denied the tion, stipulated proceeding which was to be Hills, (N.D. F.Supp. 1007 Burroughs $40,000, repairs with estimated cost over Ill.1983). appeal followed and there This by by grant.” to be financed HUD “block only. relating to costs cross-appeal stipulated precipi- Thus the facts indicate a during decline in market value tate I period ownership, of HUD and we assume
Facts
occurred,
this
with an increase in the
repairs needed.
a some-
stipulated
represent
facts
unhappy situation from the Federal
what
eight
Plaintiffs are
individuals who resid-
point
The case is said
taxpayer’s
of view.
ed
tenants within 500 feet
this dere-
others,
representative of
and a test.
to be
Club,
property, plus
lict
the Five Block
three-story
question is a
property
in
organization
pur-
voluntary
formed for the
at 7228 S. Coles Ave-
residential structure
pose
combating neighborhood blight.
Chicago. Becoming
titleholder
nue
interest
of the individual
was
foreclosure,
building
HUD allowed
safety
their concern for the health and
no
unoccupied
unguarded,
with
They
themselves and their families.
feared
duty,
unfenced.
on
Glass
watchman
drug activity
increased crime and
because
rats, mice,
throughout,
was broken
building
likely
was “a
hideout for crimi-
present, founda-
and insects were
rodents
passed
gangs.” They routinely
nals and
cracked, exterior walls needed
were
tions
immediate,
building
area and saw the
unstable,
were
exterior
tuckpointing, floors
day.
each
None of
claim to own
them
unsecured,
steps
the front
doors were
property in
neighborhood.
real
disrepair,
debris
porch were
was
back
dwelling
We note that
within 500 feet of
building,
including
around the
scattered
offending
such an
a fact that
structure is
refuse,
rubble,
and lumber material
special
law,
confers
status under Illinois
down
vandals” for whom the
“knocked
whether one is
If
owner or tenant.
his
building
frequent target.”
“awas
Mr. Rist
person
“substantially
af-
management
contract “area
broker”
violation,
alleged
fected”
in addition
(AMB)
reported
inspected seven times and
remedies,
may
to other
injunc-
he
sue for
building
secured,
windows
tion,
having
“prove
without
any special
boarded,
cut,
grass
and the
free
lot
unique damage
proper-
to himself or his
(Evidently
parties
mean to im-
debris.
ty
alleged
Chapter
from the
violation.”
reported falsely.)
Rist
ply that Mr.
Mr.
paragraph
11-13-15 of
Illinois Revised
management
had
150-200
Rist
Statutes, as
amended and
effect when
buildings and so far as
government-owned
complaint
was filed.
only
actually
is the
defendant who
appears
property, but the
Burroughs
complained
official defend-
Plaintiff
first
saw
independent
19, 1975,
knowing
had
means of
ants
defendant Waner on March
April
presented
argue any
why
on
2 the Five Block Club
reason
this is erroneous.
This, however,
petitions signed by
preclude
107 mem-
does not
Waner
considera-
bers,
oddly
tion of local
enough
opera-
one of whom
was de-
law because
HUD
tions,
out,
point
as we will
urged
fendant Rist. At
time
Federal
law
buyer
requires property management
reha-
immediate sale to
who would
conformi-
law,
They frequently
ty to local
bilitate.
communicated af-
thus
a breach of state
Rist,
occurs,
may ipso
stipulated
terwards to Mr.
but it
law
be a breach of
facto
law,
the official defendants obtained no
duties under Federal
and it
not be
rely
pendent
more information as to the bad condition of
for the court to
building
jurisdiction.
properties
until the suit was filed. The
do not be-
duties,
stipulation
properties,
describes
from come like some Federal
en-
perhaps expected
exempt
which
to infer
claves
law. Merrill
we
from local
HUD,
to know. Mr. Rist Tenant Council v.
duty
it was their
serted herein
among
are
those which can
be held to
implied by
have been
legisla-
II
scheme,
tive
according to the standards
Theory of the Action
Ash,
v.
Cort
stated
U.S.
95 S.Ct.
Defendant Hills and the other official
(1975)
ever,
damages recoverable
personal
sought.
are also
from individual officials
Statutes,
Provisions,
Regulatory
theory.
a tort
Evident-
Originally this is on
Contract Provisions Relied On
ly
mulcting
personal
rather than
placed Appendix
These are
A and are
changes in
official funds would make some
given
plaintiffs quote
verbatim
them in
factors:
application of the Cort v. Ash
their brief.
pro-
to other beneficiaries of the
detriment
depletion
gram by
of available
quoted
The HUD Handbook is
eliminated,
on the other
funds would be
by plaintiffs
relied on
government
as a
hand,
created a disincentive
there would be
regulation.
appears
on its face to be
anyone accepting appointment
as a HUD intended for internal use for the informa
official. These differences between the
guidance
tion and
of HUD
Such
officials.
sought
surprisingly
two kinds of relief
handbooks are usual
in the Executive
parties,
little discussed
and the dis- Branch of the United States Government.
disregard
possibili-
trict
seems to
Uncertainty often exists whether a hand
defendants,
Hills,
ty
except
official
be,
book is meant to
or is inadvertently
personally
liable.
be,
independent
made to
legal
source of
theory
liability
Mr.
Rist’s
is neces-
rights
or claims
the United States
*5
sarily a little different. He contracted to Government and its officials. See treat
which,
things
do
for HUD
had he done
problem
ment of this
in Fiorentino v.
them, would have lessened or eliminated
States,
(Ct.C1.1979),
United
real
located within
states, acting under the General Welfare
IV
specific
clause and not under
Federal con-
Discussion
grants
power,
stitutional
HUD must con-
A.
principal appeal.
codes, etc.,
to
form construction
of local
just
previous
as the
law
but now foreclosed
very conspicuous inability
view of the
mortgagors
to
plaintiffs
had
do. The existence of of the
any
grant-
to cite
statute
policy
dispute
ing
such a
law is not
and is
them expressly
right
a
to
sue
by quotes
illustrated
from HUD documents Federal courts on account of the kind of
example,
inadequate performance
which need not be detailed. For
by HUD officials
required
prepare
Mr. Rist’s contract
him
stipulation,
to
described in the
or
their
contractors,
necessary
local tax returns and see that HUD was
is
it
for them to
many other
judges
selves to the
circuit
who
Congress granted
impli-
them
show
duty.
this task in
have undertaken
line
under a
right
to sue
Cort v. Ash
cation
analysis.
to make such
They undertook
fully, it
To understand Cort v. Ash
partly
court
showing to the district
note that it
where
to
case
held,
Judge Moran
to sum-
it.
persuaded
proponent
implied
action
cause of
carefully
analy-
briefly his
reasoned
marize
lost, by
vote of
unanimous
all the Justices.
sis,
duty
that a breach of
owed towards
explain why
The four standards
that claim
occurred,
clearly
but to en-
these
won,
meaning might
ant lost. Had he
their
damages
by money
it
in his court
force
sepa
to
always
be different.
It is
an error
counter-productive
be
because
would
judges
rate
statements
Justices or
“ultimately
pocket
from the
come
would
questions
their context. The
stated
there
meaning apparently
beneficiary”
(422
right
to be the
ones are summarized.
Mortgage
In-
payment
deplete
2087.)
atU.S.
95 S.Ct. at
provide
Fund and
it would
surance
First,
plaintiff
is the
“one of
class
“some balm to
undefined and
some
virtual-
especial
statute
whose
benefit the
people
undefinable class of
for continu-
ly
[Emphasis
original.]
enacted?”
ing
housing”
coexistence with substandard
Second,
legis-
is there
indication
necessarily
not even
deter
but
future dere-
intent, explicit
lative
implicit,
either to
officials;
duty by
lictions of
theo-
a remedy
deny
create such
one?
to
again
here
ry
being that funds would be
Third,
underly-
consistent
is it
with the
give
aggrieved
diverted
balm
individu-
purposes
legislative
scheme
bring housing
rather
used
being
als
imply
remedy?
such a
again
toup
standard. Here
there seems to
Finally,
cause
is the
of action one tradi-
unspoken assumption
be
the HUD
tionally relegated to state law?
only in
defendants are sued
their official
Appellants make a valiant
to show
effort
capacities
required
and will
to make
implied
their entitlement
to an
Federal
pockets.
whole
out of
own
cause of action under all
four Cort Ash
stipulation
say
does
this and we
factors,
suggested
it is
that this court
implies.
fail to see where it
says
so
all
Rich,
Corp.
Indiana National
“obligated”
named
pay
defendants are
(7th Cir.1983),
F.2d
treated
sums
group
stated. The official
Cort v. Ash factors as
outmod-
somewhat
“jointly
severally obligated.”
If public
*6
ed. We cited Touche
Ross & Co. Red-
used,
funds were to be
it would have suff-
560, 575,
ington, 442 U.S.
99 S.Ct.
say
iced
that the
“obligat-
was
(1979)
establishing
L.Ed.2d
as
Moreover,
possible
ed.”
the class
claim-
equal weight,
“factors were not of
is
open-ended. They
ants
not all that
were
but that
inquiry,
the central
at which the
class,
they
not certified as a
but
defined
directed,
first three factors were all
persons
themselves
dwelling
within 500
one of congressional intent.”
referred
We
feet of the offending structure.
This
Advisors,
also to Transamerica Mortgage
category
treated as a distinct
under local
Lewis,
11,18,
Inc. v.
444 U.S.
law, conferring standing to enforce local 246,
(1979)
versely
city.)
issue,
separate
discretion,
as a
and in his
Landrieu,
Shivers
674 F.2d
the district
again
up
also or
took
(D.C.Cir.1981) (Past
present
ten-
—
stipulated,
of local law that
breaches
mortgage-insured property
ants of HUD
injunctive
and held that
local law
relief
v. Ash stan-
right
Cort
have no
only was allowed. Since such relief was no
compliance
dards to sue to enforce
longer sought,
summary
he entered
judg-
regulations.)
ment on the state claims as well. We do
(D.C.
Lynn,
Jackson v.
In United States v.
(7th Cir.1980),
property covered such proceed- prosecute such mortgage and Housing in the housing goal, established conclusion____ ings to the “realization as soon Act of of goal a decent home feasible of the of as (l) disposal Handling property; and of living environment for ev- and suitable Notwithstanding settlement claims. of family”. Congress The re- ery American any provisions relating of law housing goal and this national affirms acquisition, handling, disposal or of substantially it determines that can be property by real and other the United by the the next decade achieved within States, Secretary pow- shall also have twenty- of construction or rehabilitation er, protection for the of the interests of units, housing million six million of six Fund, pay the General Insurance out these for low and moderate income fami- of the General Insurance Fund all ex- lies. with, penses charges in connection and (b) Congress poli- further finds that The with, reconstruct, rent, complete, to deal designed to cies contribute renovate, modernize, insure, make con- housing goal achievement of the national management of, tracts or estab- have not directed sufficient attention and agencies manage- lish suitable for the preservation existing resources to the of, ment or sell for cash or credit or lease housing neighborhoods, and de- discretion, in any property acquired his housing terioration and abandonment section____ by him under this for the Nation’s lower income families decade, accelerated over and has the last Act, amended, Housing The National that this acceleration has contributed to § 1702, provides, pertinent part: in U.S.C. neighborhood disintegration par- and has powers The conferred this Act shall tially negated progress toward Secretary be exercised Housing achieving housing goal the national (hereinafter Development and Urban re- primarily through which has been made “Secretary”). ferred to as the In order housing new construction. carry provisions out the of this title (c) The declares that if the na- V, II, III, VI, VII, VIII, IX, X, and titles achieved, housing goal tional is to be XI, Secretary may establish such greater effort must be made to encour- agencies, accept and utilize such volun- age preservation existing housing services, tary uncompensated utilize neighborhoods through such meas- such Federal employees, officers and housing preservation, ures as moderate and, State, consent of the rehabilitation, improvements in hous- employees, State and local officers and maintenance, ing management and in appoint such other officers and conjunction provision with the em- ade- [and municipal ployees quate necessary____] services. Such an effort as he find concentrate, greater shall, should to a extent Secretary carrying out the past, in the has provisions II, III, of this title and1titles neighborhoods where deterioration is evi- V, VI, VII, VIII, IX, X, and XI be autho- yet dent but has not become acute. rized, in capacity, his official to sue and any competent juris- be sued in court of National diction, § 1713, State or Federal. provides pertinent part: (k) Acquisition property by convey- §24, 11-31-1, amended, ch. Ill.Rev.Stat. ance or foreclosure. provides, pertinent part: (1) hereby acquire authorized either to corporate 11-31-1. The authorities any property, of and title to possession municipality may demolish, of each re- by mortgage insured under covered pair repair or cause the demolition or him, assigned this section and vol- dangerous buildings and unsafe extinguishment or un- untary conveyance indebtedness, (2) completed buildings and abandoned mortgage with- insti- proceedings territory such municipality tute foreclosure on the *10 Relevant Property Portions the HUD ____ Disposition Handbook building may up or No be boarded enclosed. otherwise Paragraph Chapter of the HUD Municipal City Chicago, Code of provides, Handbook in pertinent part: § 39-13, part: provides, pertinent repair program b. shall include all Any person persons 39-13. or own- repairs necessary to create maximum ing, maintaining, operating, collecting appeal sales existing eliminate or for, having any legal equita- rents or or potential structural, mechanical and any open ble interest in vacant and build- addition, other deficiencies. ing, any uncompleted or abandoned repair program should include such building, any boarded-up or vacant build- which, upgrading type because ing any or enclosed otherwise vacant properties, location of the building duty must have a watchman on Director determines to upon premises any on which one of generate sales, or to stabilize or im- buildings such aforementioned is situated prove neighborhoods. In establish- every day continuously between the repair program, particularly ' hours of 4:00 P.M. and 8:00 A.M. inner-city, where properties core-area required watchman pro- Said under the involved, are important it is to be visions of this ordinance shall remain on salutary aware of the effect that will duty daily during required hours un- probably timely provi- result. The building occupied til such is either or repair sion of or substantial rehabili- ____ razed may tation preserva- be critical to the Municipal City Chicago, Code of the tion of blocks and neighbor- even § 99-4, provides, pertinent part: hoods older areas of our cities and vehicle, building, structure, 99-4. suburbs. Typically, No in older but still lot, receptacle, yard, neighborhoods, sound premises, part or the rehabilita- thereof, made, used, kept, shall be tion of one house main- on the block can tained, operated city use, or in the lead to in upgrading investment oth- keeping, maintaining, er houses on operating or shall the block. The result any nuisance, repair program be the occasion of respect or shall with dangerous deteriorating be to life or or detrimental substandard health. should be to create a structure in condition, compo- like-new all
Every building or structure construct- operable, nents major and with no or ed maintained in violation of the build- expense offing in the for several code, ing provisions of this or which is in years. major All repair work shall unsanitary condition, an inor an unsafe accomplished be in accordance with condition, dangerous or any or which in established contracting formal endangers manner the health safety or purchase procedures. order any person persons, or is hereby de- building clared to be a or part public therof which nuisance. Every [*] [*] ¡H sH # unsanitary by condition reason of the Repairs. Immediate Protective g. Ir- or being basement cellar covered with respective repairs of whether full water, stagnant pres- or reason of the delayed, immediate shall attention be gas, any ence of sewer reason of given repairs required to those portion building being of a infected with prevent undue deterioration being disease or unfit for human habita- eliminate hazardous conditions that tion, or which reason of dangerous public. unsanitary condition, is a source of sick- ness, Initial Cleanup and Maintenance. endangers public or which h. health, hereby public declared to be is essential unsightly condi- nuisance. tions promptly. be corrected Imme- management top quality
maintain AMB services. Where an is new diately upon taking possession the expend program, the CPO shall (AMB) Management Broker Area time, amount of either a sufficient office, AMB is not the local if an qualified personally or staff available, arrangements shall make member, training supervising have all rubbish removed and employees the AMB and his who thorough cleaning, premises given a *11 engaged performing in the services cutting grass, weeding, including required under the contract. broker needed, trimming shrubbery if and In addi- i. Maintenance. Continued Relevant Portions Rist’s AMB Seward arrange- cleaning, tion to the initial Contract shall also made for contin- ments be Contract, 3, provides, The AMB Article maintenance, “housekeeping” ued pertinent part: lawns, shrubbery and such as care cleaning. FACILITIES, removal and broom snow ARTICLE MATERI- 3— ALS, Unoccupied properties main- must be LABOR AND SERVICES TO BE presentable condi- BY tained clean and FURNISHED THE CONTRACTOR: tion. compensation In consideration for as sti- pulated in this contract the Contractor 185, Paragraph Chapter 7 of the JHUD agrees perform in accordance with the provides, pertinent part: Handbook following requirements at no additional Repair Objectives. and Maintenance expense except Government (a) objective place a. The is to overall provided herein. properties in first-class condition to s}: s(; tfc appeal create maximum at the sales time, requisite d. SERVICES: The at- highest price in obtainable sales or- principals tention and effort of the and der to contribute to maintenance of a employees regularly engaged in the es- market; (b) firm real estate eliminate tablished business of the Contractor to potential default hazard attributable properly discharge obligations and physical deficiencies; (c) elimi- responsibilities of the as es- Contractor structural, nate all (including termite hereunder, including supervi- tablished infestation) mechanical and surface repair, oper- sion of all maintenance and which, eliminated, deficiencies if not ating activities. major repair would result in or re- placement expenditures by pur- Contract, The AMB provides, in Article chaser, upon or demands HUD under pertinent part: warranty the terms of the on the ARTICLE 4.—INITIAL SERVICES TO Contract, Sales Form 2384. BE BY THE PERFORMED CONTRAC- Paragraph Chapter- of the HUD TOR Handbook, provides pertinent part: perform The Contractor shall the follow- Supervision 80. Management Area ing stipulated initial services with his quality Brokers. order to obtain regular employees at no additional ex- basis, performance timely on a Government, pense to the responsible CPO shall be for assur- Informing d. promptly Government management that each area bro- concerning damage resulting all (AMB) ker understands what is ex- vandalism, fire, windstorm, and other him, pected of and that he is famil- causes at the outset and thereafter as iar with the acceptable standards of require. circumstances performance established the lo- Contract, The AMB provides:
cal office for all Article activities under his supervision. super- The CPO shall ARTICLE 5.—INITIAL SERVICES TO vise activities of each AMB to BE BY THE OBTAINED CONTRAC- necessary develop extent TOR
ey mortgage taken back in connection sale of such or other arrange shall su- The Contractor legal possession form of following pervise the initial services Secretary does all the terms and condi- not hold free and clear accordance with specifically herein tions Article and title property. to such imposed under Article 10. limitations provide pro- for the shall also Contractor repair actual or maintenance costs preservation proper- tection and of such project shall be reimbursable from funds However, this nature actions of ties. paid through Treasury, the U.S. or those shall limited to through Government direct of health hazards and prevention Treasury, appropriate. U.S. prevent security measures minimum Winterizing of all operating systems a. property by elements damage to the equipment, properties as to all va- byor vandalism. subsequently at the vacat- cant outset at other time ed or as conditions POSNER, Judge, Circuit concurring. *12 require; I join Judge premises opinion, Nichols’ but his b. Removal the of all debris, and to disposition cross-appeal trash both as interior and laconic leads grounds; a my me to add statement of own view why the Securing properties against c. district court’s refusal to award the unau- defendants, damage winning entry parties, thorized and the ele- the as the ments at the outset and 54(d) thereafter as of suit costs under Rule should needed; be reversed. Mowing grass trimming
d. the and the shrubbery[.] rule, Under the “costs shall be al Contract, 7, lowed as of course provides prevailing party The AMB to the Article pertinent part: unless the court otherwise di [district] rects.” an original As matter
ARTICLE this lan 7.—CONTINUING SERVIC- guage interpreted could be give TO BE BY ES THE to the dis OBTAINED CON- judge trict an essentially TRACTOR unreviewable dis cretion to award or not to award costs to arrange The shall Contractor su- and winning party the pervise pleased. as the following continuing services But in accordance with this court has not interpreted all the terms and con- the rule “ specifically ditions hereof and thus. Article 9 We have said it ‘prin a establishes ” and the imposed ciple limitations preference’ Article (quoting Friendly, In The repair 10. actual or maintenance Discretion, discretion About 31 Emory costs shall be project reimbursable from 747, (1982)) L.J. excep 768 that in all but through Treasury, funds or the U.S. requires tional cases the judge to award paid through direct the Government winning party, costs to plain Treasury, appropriate, the U.S. tiff defendant. See Coyne-Delany Co. Continuing a. buildings maintenance of Capital Development Bd., 385, 717 F.2d grounds____ and (7th Cir.1983); Lines, Delta Air Inc. Colbert, Contract, (7th Cir.1982); The AMB F.2d provides, Article Bros., pertinent part: Popeil Elec., Inc., Inc. v. Schick (7th F.2d Cir.1975). 774-76 ARTICLE Since “the 8.—CUSTODIAL SERVICES: ingredients proper of a decision with [to perform Contractor shall custodial hold objective are factors ... acces costs] properties assigned services on vacant judgment sible to reviewing of a hereunder which are encumbered court,” mortgages assigned Coyne-Delany Capital Co. v. un- De velopment Bd., der of mortgage supra, contracts insurance or 717 F.2d at we property when the has been must abandoned determine whether such factors are the Secretary purchase and holds mon- present here. mortgage others, guarantees argue two factors. HUD only plaintiffs of limited first, they persons which of these are loans on houses in members means, weight little
monetary
is entitled to
high rate
groups live.
is said
where the defendants
as this
in a case such
on its loans to owners of
default
(with
exception
a broker hired
are
HUD, through
people
poor
has made
question)
manage
property
foreclosure,
biggest owner of slum
expenses
suit
whose
public officials
in the
After fore-
property
United States.
States, which is
by the United
were borne
closure,
property standing tenant-
with the
tax-
say by
taxpayer.
federal
Most
less,
is
com-
rapid
deterioration often
means; most
persons
of limited
payers
case,
plete,
where HUD lost
in this
raised from such
revenue is
government
in the its
investment
entire
wealthy few.
not from the
persons, and
got blight,
neighbors
eyesore,
to the defendants
The denial of costs
menace,
maybe even
contend with.
contribute,
slightly,
however
case will not
public
are the unintended effects of
Such
egalitarian distribution of
to a more
unfortunate;
They
very
benevolence.
nation’s wealth.
think,
did,
but to
these
ask
The second factor that
provide
courts are authorized to
federal
whether,
won
is
had
us
consider
thinking. They
remedy is wishful
would be
case,
a “landmark”
it would
been
only if there had
an inva-
authorized
been
decision;
argue
the efforts
rights;
plaintiffs’
legal
sion of
federal
press
litigants
fundamental
who
Judge
explains, there
but as
Nichols
subsidized,
changes in the law should be
§ 1441a,
nothing in 42
the statute on
losing
deter such liti-
high
lest the
risk
founded,
suggest
this suit
argu-
I
gants.
question
validity
of this
*13
Congress
provide legal protection
meant to
legal
The
today’s
ment
climate.
federal
neighbors
housing from
to
of subsidized
choking
litigation,
of
courts
much
foreclosure,
the side
abandon-
effects—
meritless;
losing
of
completely
fear
ment,
housing
deterioration —of federal
much
And
seems
to be
of a deterrent.
“
speaks of
subsidies. When the statute
‘a
to reward the loser of what would have
”
environment,’
living
preser-
“the
suitable
case
landmark
if he had won creates
been
housing
existing
neighbor-
vation
paradox:
following
the
the more frivolous
hoods,”
“neighborhood disintegration”
suit,
greater
the
the
the landmark it would
“deterioration,”
referring not
it is
to
unlikely
establish in the
event that it suc-
neighbors
the
of the subsidized homeown-
ceeded,
stronger
argu-
and hence the
the
ers
to
the subsidized homeowners
the
A
denying
ment for
winner his costs.
conditions,
living
themselves.
is their
successful
to overrule Brown v.
suit
Board
neighbors,
not those of their
that the subsi-
Education,
347 U.S.
98
S.Ct.
dy
protect
improve.
programs seek to
(1954),
seg-
L.Ed. 873
and thus make racial
rights
To give
neighbors
the
of action
again
regation
public
schools once
law-
against
eq-
HUD and its officials—whether
ful,
legal
would
one of
all-time
land-
be
the
uitable, to
to
argu-
spend
force HUD
whatever
marks. No one takes the landmark
forgiving
money
prevent
building
for
the loser’s costs that
to
ment
seriously;
argues
interpreting
one
no
for
that it has taken over
foreclosure from
54(d)
encourage
bringing of
Rule
to
the
deteriorating,
legal,
compensate
to
that have no reasonable chance of
lawsuits
neighbors
the nuisance created
merely
they
if
succeeding,
because
did suc-
neglect
only compound
HUD’s
—will
legal
work a
revolution.
ceed
would
having
to HUD of
to
on
cost
foreclose
its
present
lawsuit had no reasonable
The
just having
Instead
off
to write
loans.
succeeding,
fact
and in
borders
chance
loan,
enough,
would,
which is bad
the frivolous.
on
interpretation
plaintiffs’
of the
statute,
pay
have
out
part
program
subsidizing
money
to
additional
of its
As
veterans,
poor,
mortgagor’s neighbors money
housing needs
—
Cort
improve
enough,
is still cited
otherwise be available
often
there is
would
housing.
program
would
the stock
its
some doubt whether
test remains au-
expensive,
more
and the intended
be made
v. Sierra
thoritative.
See
California
no
benefit
would obtain
net
beneficiaries
Club,
287, 302-03,
451 U.S.
101 S.Ct.
expenses.
plain-
additional
1783-84,
(1981) (concurring
1540
639,
Inc.,
630,
rials,
101 S.Ct.
451 U.S.
that
was concerned
judge
2066,
(1981);
2061,
L.Ed.2d 500
Trans-
problem
68
of limitations
have statute
would
Lewis, 444
v.
court,
Mortgage Advisors
they
america
in state
over
started
245-246,
242,
11, 15-16, 100 S.Ct.
Ill.Rev.Stat.,
110, U.S.
ch.
not
See
have.
would
(1979). Thus,
question
L.Ed.2d 146
“[t]he
noted that
court also
The district
1113-217.
simply
would benefit
who
by 28
would be entitled
the defendants
Act,
Congress
whether
intended
con-
§ 1442(a)(1)
a state court
to remove
U.S.C.
upon
beneficiar-
rights
federal
those
fer
Willing
brought against them. See
action
Club, 451
v. Sierra
U.S.
ies.”
402,
U.S.
89 S.Ct.
Morgan, 395
ham v.
California
1775,
68 L.Ed.2d
(1969).
dis
But the
party, and plaintiffs are liability finding for costs. presumption to avoid of a that this sence Colbert, Lines, F.2d v. 692 indigent, Inc. is no realistic concern Delta Air there Cir.1982). Historically, 489, (7th this will 490 to the defendants here awarding costs to be presumption found the court has attempting to vin- discourage persons from some only where there has been overcome rights in federal court. dicate their misconduct, default, fault, or action short, compelling is no in this there reason part pre- worthy penalty of on the of awarding to rule of case alter normal Recently, vailing this court held Id. side. prevailing party. to the costs may party overcome the losing a also plaintiffs’ Finally, regard to the showing indigency. by a of presumption claims, claims state the denial those law Co., 717 & Wire v. Central Steel Badillo appealed court was not district (7th Cir.1983). 1160, 1165 F.2d Thus, only I it not this court. find unnec- argued, not and the have essary inappropriate this court but also find, did that the defend- court below have to decide whether those claims should their con- penalized to be ants deserve entertained the district court. been litigation. Although the dis- duct in this did trict court state means,” interpret I do not
“of limited Thus, none of finding indigency.
as a previously recognized grounds for re-
fusing prevailing party to the costs Moreover,
present in this case. there no America, UNITED STATES existing expand need law in this area. Appellant, may presented While this case have novel importance, questions public interest found, as the district court this is an insuf- VALLEY CONSTRUCTION MISSOURI depart from ficient reason the normal COMPANY, Appellee. awarding prevailing rule costs No. 83-2188. party. The Circuit District Columbia Appeals, United States Court fees, explained: attorneys’ has “Unlike Eighth Circuit. unpredictability magnitude whose parties discouraged with otherwise merito- 15, March 1984. Submitted litigation, from small and rious claims 22, Aug. Decided 1984. fees, predictable printing, costs court reporters’ customarily and court fees have
been viewed as 'and reasonable litigation, properly
incidents of reimbursa- security type statutory deposits lar of suit is inconsistent with the interest on owed them under law); gravely per scheme or would interfere with state Knox Hill Tenant Council v. Wash function, (D.C.Cir.1971) governmental ington, F.2d formance of 448 1050-53 Congress plainly (holding, to use "sue and federal intended different laws here, sense, narrow "it must be than involved that tenants of HUD- sued" clause those gov declaratory presumed property that when launched owned sue HUD for injunctive agency relief under local and federal law ernmental into commercial world alleged authority regarding properly to ‘sue or be failure and endowed with sued,' maintain Hills, judi agency property); F.Supp. not less Estrada v. amenable (N.D.Ill.1975) (§ process private enterprise permits under like suit cial neighbors would be.” 309 U.S. at officials of HUD-owned circumstances alleging properly prop Council See also Merrill Tenant failure to maintain that S.Ct. at 490. HUD, (7th Cir.1981) (HUD erty, though officials whose 638 F.2d duties are discre brought tionary liability money tenants are immune from suit immune damages). operated property to recover HUD-owned
