Cartwright v. American Savings & Loan Association

Mary Cartwright (plaintiff), a Black woman, owned a home in Hammond, Indiana. In 1980 Cartwright and her husband purchased lots in an urban-renewal area in East Hammond that was majority Black and low income. Cartwright applied for a $90,000 home-mortgage loan from American Savings & Loan Association (American Savings) (defendant) to finance the construction of a home in the urban-renewal area. American Savings received the 1980 loan application but never processed the application because of communication issues with Cartwright. In 1982 Cartwright met with Louis Green, the vice president of American Savings, to discuss submitting another home-mortgage application. During the meeting, Green told Cartwright that interest rates for loans were extremely high and that it would be better for Cartwright’s finances if she sold the home she already owned and used the proceeds from the sale to finance the construction of the new home. Green suggested that Cartwright should not own two homes because it would be difficult for her, as a woman, to oversee the two properties. Green also told Cartwright that the urban-renewal area might not support a $90,000 home, because the average price of homes in the area was closer to $60,000. Cartwright did not file another home-mortgage loan application. Instead, Cartwright filed a lawsuit against American Savings, alleging that American Savings engaged in illegal redlining in the urban-renewal area and discriminated against her on the basis of her gender and race in violation of the Fair Housing Act and Equal Credit Opportunity Act. American Savings moved to dismiss Cartwright’s claims. The district court granted American Savings’ motion and dismissed the case, holding that American Savings could not have discriminated against Cartwright in violation of the statutes because American Savings never denied Cartwright’s loan application and that there was no evidence that American Savings had engaged in redlining in the urban-renewal area. Cartwright appealed.