Selden Apartments v. United States Department of Housing and Urban Development

Summary

The Sixth Circuit affirmed the dismissal of Selden Apartment Associates' claims under 42 U.S.C. §§ 1981 and 1982 on sovereign-immunity grounds and upheld a jury verdict for HUD under the Fair Housing Act. The court held that HUD's statutory "sue and be sued" provisions did not waive sovereign immunity for damages claims based on alleged racial discrimination, and that any dismissal error was harmless because the claims relied on the same proof. The court also upheld the jury instructions and the exclusion of evidence concerning the purchaser's subsequent performance and other HUD sales.

Holdings

1. The sue-and-be-sued provisions in 12 U.S.C. § 1702 and 42 U.S.C. § 1404a do not waive HUD's sovereign immunity for civil-rights damages claims based on alleged racial discrimination rather than violations arising from HUD's commercial housing transactions.
2. Even assuming the district court improperly dismissed the §§ 1981 and 1982 claims, reversal was not required because Selden suffered no prejudice.
3. The district court adequately instructed the jury by presenting the ultimate factual issue of whether HUD intentionally discriminated against Selden.
4. The district court did not abuse its discretion by excluding either category of evidence because neither was relevant to whether HUD intentionally discriminated when it evaluated the bids and awarded the sale.

Questions Presented

1. Whether HUD's statutory sue-and-be-sued provisions waived sovereign immunity for Selden's damages claims under 42 U.S.C. §§ 1981 and 1982.
2. Whether any error in dismissing the §§ 1981 and 1982 claims required reversal when the claims relied on the same proof as the Fair Housing Act claim and the jury found for HUD.
3. Whether the district court adequately instructed the jury on the McDonnell Douglas and Burdine burden-shifting framework and the ultimate issue of intentional discrimination.
4. Whether the district court abused its discretion by excluding evidence of Ye Olde Realty's post-sale management performance and evidence concerning HUD sales under its Minority Business Enterprise Program.

Disposition

affirmed