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United States v. Southern Management Corp.

955 F.2d 914 (1992)

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United States v. Southern Management Corp.

United States Court of Appeals for the Fourth Circuit
955 F.2d 914 (1992)

MJ

Facts

A community-services board operated a drug-addiction recovery program. Under the program, after a year of living drug-free, participants could live in a board-rented apartment. If the participant failed a drug test, the board would discharge and evict the participant. The board sought to rent apartments for the program from the Southern Management Corporation (SMC) (defendant). The board was unable to do so. The United States (plaintiff) sued the SMC for violating the Fair Housing Act (FHA) by discriminating against handicapped individuals. The parties cross-moved for summary judgment on the issue of whether the program participants were handicapped within the meaning of the FHA. The district court concluded that the participants were handicapped and allowed the case to proceed to trial. A jury found that the SMC violated the participants’ rights under the FHA and imposed damages. The district court then imposed a monetary penalty and entered a detailed injunction that prohibited the SMC from discriminating against handicapped persons in the future. The SMC appealed, arguing that the program participants were not handicapped under the FHA and thus were not covered by the law. The United States argued that the law did apply to these individuals.

Rule of Law

Issue

Holding and Reasoning (Hall, J.)

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