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Chap014Cases

The Legal and Regulatory Environment of Business

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Case 14 Case 14-1 (Chapter 14, p. 422) MEYER v. HOLLEY 123 S.Ct. 824 (2003) FACTS: David Meyer, a licensed real estate broker, was president and sole owner of Triad, Inc. This corporation employed Grove Crank as a real estate salesperson. The Holleys, an interracial couple, tried to purchase a home. Allegedly, Grove Crank discriminated against the Holleys thereby preventing them from buying a home. The Holleys sued Grove Crank, Triad, Inc., and David Meyer. Mr. Meyer sought to have the lawsuit against him dismissed since he could not be vicariously liable for the illegal actions of his salesperson under the Fair Housing Act. The District Court dismissed the lawsuit; however, the Ninth Circuit reinstated the Holleys’ suit. Mr. Meyer sought and was granted review by the U.S. Supreme Court. ISSUE: Is the owner of a corporation protected from vicarious liability through the Fair Housing Act? DECISION: Yes. REASONS: 1. The Fair Housing Act allows liability of a real estate salesperson to be passed through to the employing corporation.
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