Tuesday, February 21, 2023

Capitol Savings & Loan Case (p. 350)

Suppose Grutz conveys:

to A and his heirs, but if the property is ever owned or occupied by any "colored person or persons," then to B and his heirs

Assume that the property is sold to an African-American family and B files a lawsuit asking the court to enforce the forfeiture and quiet B's title in fee simple.

Are racist conditions or restrictions consistent with public policy?

Do such restrictions violate federal, state and local fair housing laws and similar anti-discrimination laws?

Would judicial enforcement violate the Equal Protection Clause of the US Constitution?

What about a covenant in a modern "exclusive development" that restricts use of the land to single family residential use only and requires single family houses to "be no less than 3500 square feet of finished living area, and to be constructed with brick exterior walls and cedar shake shingle roofs?"

Is this consistent with modern public policy and fair housing laws? Why or why not?

What about a covenant that required owners of property in the development to have annual incomes of $250,000 or more?

Contrary to public policy? Why or why not?