Goldberg v. 400 East Ohio Condominium Association

The Illinois Condominium Property Act prohibited condominium associations from adopting any rule impairing any First Amendment rights and provided that any such rule would be void as a matter of public policy and ineffective. Marcy Goldberg (plaintiff), a condominium unit owner in the 400 East Ohio Condominiums, sued the condominium association (the association) (defendant) in federal district court under 42 U.S.C. § 1983. Goldberg alleged that the association, acting under color of state law, violated her First Amendment rights after it enacted and enforced a condominium regulation prohibiting all canvassing or disbursing of materials to individual units other than those related to political campaigns by placing a lien on her unit as a penalty for her leafleting activities. The association moved to dismiss the suit on the ground that it did not act under color of state law. Goldberg asked the court to extend the Supreme Court’s decision in Shelley v. Kraemer, in which the Court held that a state court’s enforcement of a racially restrictive covenant constituted state action. Goldberg urged the court to adopt the reasoning of a Florida federal district court that found unconstitutional a condominium rule prohibiting residents from flying the American flag. Goldberg also asked the court to find that the association acted under color of state law because it had powers traditionally associated with the state, such as the power to make rules, conduct hearings, issue decisions, and impose fines and liens.