Petition — Golden v. Biscayne Bay Yacht Club

Supreme Court brief1976

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in the

JUL 12

Supreme Court

of the

United States

MISC. NO.

October Term, 1976

HAROLD S. GOLDEN and DAVID FINCHER,

Petitioners,

8.

BISCAYNE BAY YACHT CLUB; MAURICE A. FERRE,

Mayor, City of Miami, Florida; THEODORE GIB-

SON, MANOLO REBOSO, ROSE GORDON and

J. L. PLUMMER, City Commissioners of the City of

Miami, Florida,

Responden's.

PETITION FOR WRIT OF CERTIORARI

TO THE UNITED STATES COURT OF APPEALS,

FIFTH CIRCUIT

WARREN S. SCHWARTZ

1140 N. E. 163rd Street

North Miami Beach, Florida

33162

MELVIN L. WULF

American Civil Liberties Union

Foundation

22 East 40th Street

New York, New York 10016

BRUCE S. ROGOW

American Civil Liberties Union

Foundation of Florida

Nova University Center for the

Study of Law

3301 College Avenue

Fort Lauderdale, Florida 33314

MAURICE ROSEN

16666 N. E. 19th Avenue

North Miami Beach, Florida 33162

Counsel for Petitioners

MIAMI REVIEW — 371-4853 — 377-3721

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INI EX

Page

OPINION BELOW WW — * g 2

JURISDICTION __ 8 a 2

QUESTIONS PRESENTED FOR REVIEW]¾ZQ 2

CONSTITUTIONAL AND STATUTORY PROVI-

..... 3

STATEMENT OF THE CASE ꝶ gt 4

REASONS FOR GRANTING THE WRIT... 8

r —— 15

INDEX TO APPENDIX

Golden v. Biscayne Bay Yacht Club,

530 F.2d 16 (en bane, 5th Cir., April 15, 1976) App. 1

Golden v. Biscayne Bay Yacht Club,

521 F.2d 344 (5th Cir. 19755 5 App. 41

Golden v. Biscayne Bay Yacht Club,

370 F.Supp. 1038 (S. D. Fla. 1973) — App. 65

ii

TABLE OF CITATIONS

Cases Page

Burton v. Wilmington Parking Authority,

r 10, 11

Edwards v. Habib,

397 F.2d 687 (D.C. Cir. 1968) — 14

Gilmore v. City of Montgomery,

417 U.S. 556 (1977 Passim

Golden v. Biscayne Bay Yacht Club,

e re 2,4

Golden v. Biscayne Bay Yacht Club,

521 F.2d 344 (5th Cir. 1975) Passim

Golden v. Biscayne Bay Yacht Club,

530 F.2d 16 (5th Cir. 1976) Passim

Greco v. Orange Memorial Hospital Corp.,

513 F.2d 873 (5th Cir. 1975) — 14.

Jackson v. Metropolitan Edison Co., %

419 U.S. 345 (1974) : 13

Jackson v. Statler Foundation,

496 F. 2d 623 (6th Cir. 1974) 7777 14

Moose Lodge No. 107 v. Irvis,

,, Passim

Perma Life Mufflers v. International Parts Corp.,

ee 12

iii

TABLE OF CITATIONS (cont.)

Cases Page

Powe v. Miles,

407 F.2d 738 (24 Cir. 1968) ———___________ 14

Runyon v. McCrary,

___. U.S, —___, 44 L. W. 5034 (June 25, 1976) 10

Williams v. Lee,

r 11

CONSTITUTIONAL AMENDMENTS

, 3

STATUTES

, 2

e cienenissebncliasinnaidiineialabite 3, 10

... 3

.. —— 3

OTHER AUTHORITIES

State Action and the Burger Court,

60 Va.L.Rev. 849 (1974) _ 3 14

State Action: Theories for Applying Constitutional

Restrictions to Private Activity,

74 Colum. L. Rev. 656 (197777 N 14

in the

Supreme Court

of the

Bnited States

MISC. NO.

October Term, 1976

HAROLD S. GOLDEN and DAVID FINCHER,

Petitioners,

v8.

BISCAYNE BAY YACHT CLUB; MAURICE A. FERRE,

Mayor, City of Miami, Florida; THEODORE GIB-

SON, MANOLO REBOSO, ROSE GORDON and

J. L. PLUMMER, City Commissioners of the City of

Miami, Florida,

Respondents.

PETITION FOR WRIT OF CERTIORARI

TO THE UNITED STATES COURT OF APPEALS,

FIFTH CIRCUIT

2

The Petitioners, by undersigned counsel, respectfully

request that a Writ of Certiorari issue to review the judg-

ment and opinion of the United States Court of Appeals for

the Fifth Circuit entered on April 15, 1976.

OPINION BELOW

The opinion of the Court of Appeals, en bane, is re-

ported at 530 F.2d 16. The original panel decision, which

held in favor of the Petitioners, is reported at 521 F.2d

344. The District Court decision, which also held in favor

of the Petitioners, is reported at 370 F.Supp. 1038. Copies

of all three opinions are included in the Appendix to

this Petition.

JURISDICTION

The judgment of the Court of Appeals was entered on

April 15, 1976. This Petition was timely filed. The juris-

diction of this Court is based upon Title 28 U.S.C. §1254

(1).

QUESTIONS PRESENTED FOR REVIEW

I.

HAS THE CITY OF MIAMI, FLORIDA, BY

VIRTUE OF THE SPECIAL CIRCUM-

STANCES INVOLVED IN ITS LEASING OF

PUBLIC BAY BOTTOM LAND TO A PRI-

VATE YACHT CLUB WHICH PRACTICES

RACIAL AND RELIGIOUS DISCRIMINA-

TION, SANCTIONED, FOSTERED, ENCOUR-

AGED OR IDENTIFIED ITSELF WITH THE

3

DISCRIMINATORY POLICIES OF THE CLUB

IN SUCH A MANNER AS TO CONSTITUTE

STATE ACTION WITHIN THE MEANING

OF THE FOURTEENTH AMENDMENT?

II.

DOES THE DEGREE OF STATE ACTION

NECESSARY TO IMPOSE FOURTEENTH

AMENDMENT RESTRAINTS UPON “PRI-

VATE” RACIAL AND RELIGIOUS DISCRIM-

INATION DIFFER FROM THAT WHICH IS

NECESSARY TO IMPOSE FOURTEENTH

AMENDMENT RESTRAINTS UPON OTHER

TYPES OF “PRIVATE” UNCONSTITUTION-

AL CONDUCT?

CONSTITUTIONAL AND STATUTORY

PROVISIONS INVOLVED

Amendment XIV

. nor shall any state deprive any person of

life, liberty or property without due process of

law...

Title 42 U.S.C. §1983

Civil action for deprivation of rights

Every person who, under color of any statute,

ordinance, regulation, custom, or usage, of any

State or Territory, subjects or causes to be sub-

4

jected, any citizen of the United States or

other person within the jurisdiction thereof to the

deprivation of any rights, privileges, or immuni-

ties secured by the Constitution and laws shall

be liable co the party injured in an action at law,

suit in equity, or other proper proceeding for

redress.

STATEMENT OF THE CASE

Harold S. Golden and David Fincher sought member-

ship in the Biscayne Bay Yacht Club in Miami, Florida.

The Yacht Club never had a black member, except for an

honorary membership bestowed upon the Commodore of

the Jamaica Yacht Club. The Club never had a Jewish

member. Golden is Jewisn. Fincher is black. Each at-

tempted to apply for membership in the Club, but were

refused. Thereafter, they brought suit pursuant to Title 42

U.S.C. 881981, 1983 and 2000(a), challenging the admis-

sions policies of the Club.

The Biscayne Bay Yacht Club’s docks are on bay

bottom land leased from the City of Miami at $1.00 per

year. The District Court found that the land is “essential

to the Club’s functioning as a Yacht Club.” Golden v.

Biscayne Bay Yacht Club, 370 F.Supp. 1038, 1040. It also

determined that permission to construct the docks on the

land was to “help relieve the acute shortage of public dock

facilities in the City of Miami.” Jd. at 1040 (emphasis in

original). Furthermore, the lease incorporated City racial

‘In its present posture this case presents only the §1983 issue.

After prevailing in the District Court on that issue, the Petitioners took

no cross appeal from the failure of the District Court to find or assert

jurisdiction under any other Civil Rights Statutes. See, Colden v.

Biscayne Bay Yacht Club, 530 F.2d 16, 17, n. 1.

5

and religious nondiscrimination ordinances, Id. at 1040,

1041, which the city failed to enforce although aware of

the violations.

The District Court concluded that the Yacht Club did

engage in discriminatory admission policies. Jd. at 1044.

As a result, only white, Christian boaters had use of the

Club’s pier facilities which rested on public land. Holding

that the City’s involvement with the Club created a “sym-

biotic relationship,” the District Court found there to be

sufficient state action to impose Fourteenth Amendment

Constitutional restraints and enjoined the Yacht Club

from “barring . . . membership to applicants solely on ac-

count of their race or religious affiliations.” Jd. at 1044.

The Yacht Club appealed and the Fifth Circuit af-

firmed the decision of the District Court. Golden v. Bis-

cayne Bay Yacht Club, 521 F.2d 344 (5th Cir. 1975).

The Club successfully petitioned for rehearing en banc

and the en banc Court, in a nine to five decision, reversed

the original panel ruling, holding that the reiationship

between the City and the Yacht Club did not constitute

state action. The majority opinion stated:

On the law as above discussed, and on the facts

as above recited, we have the same opinion of this

case that the Supreme Court had in Moose Lodge

[No. 107 v. Irvis, 407 U.S. 163 (1972)], supra;

the facts and circumstances fall far short of the

symbiotic relationship found in Burton [v. Wil-

mington Parking Authority, 365 U.S. 715

(1961) J, supra. As a matter of law and fact, they

fall short of establishing that the City of Miami

6

has so far insinuated itself into a position of

interdependence with the club that it must be rec-

ognized as a joint participant in the internal

membership policies of the club. The City of

Miami has not significantly involved itself in

those membership policies. The lease does not pro-

vide a sufficiently close nexus between the city

and the club so that the action of the club may be

fairly treated as that of the city.

Golden v. Biscayne Bay Yacht Club, 530 F.2d 16,

22.

The en bane dissent cifered a different view:

We understand the majority opinion to hold that

the fact that a private club leases some of the

property it uses from a governmental entity is

not enough in itself to imbue the private club’s

discriminatory activities with “state action.”

Whatever the validity of that holding as a legal

proposition, we are convinced that the result

reached by the majority is incorrect, because

several unique factors relating to this particular

lease were not properly taken into account in

the majority opinion.

The panel opinion, 521 F.2d 344, as does this

dissent, discussed these special considerations

which mandate the conclusion that “much more

is involved than simple ownership and lease” 521

F.2d at 352. This was a lease of waterbottom

land abutting very valuable property—we can

take judicial notice that this lease was worth

considerably more than $1.00, and thus that the

7

financial accommodation here had the same effect

as would a fair market value lease combined with

a large subsidy given from the city to the club.

The lease arrangemen. between the club and the

city was grounded, pursuant to a state require-

ment, on a condition that the club would be per-

forming a “public purpose,” viz, providing pri-

vate dock space which would to some extent re-

lieve the overcrowded public docks. The city at

one point had recognized, through ordinance, that

as trustee of a limited and valuable public re-

source, it had an obligation to insure that any

private clubs given exclusive access to parts of

that resource would not practice invidious dis-

crimination. The club failed to comply with that

ordinance, although the prohibition of invidious

discrimination had been made part of the lease,

and the city refused to enforce the ordinance,

despite clear notice of the violation.

This Court need not decide whether any one of

these considerations, standing alone, would be suf-

ficient to support a finding of state action. Rather,

we need only pass on whether the cumulation of

these considerations develops an image of “sig-

nificant state involvement.” For us, all the facts

and circumstances lead to only one conclusion—

the cumulation of the various aspects of the

city-club relationship colors the club’s policies of

racial and religious discrimination with state

action.

Golden v. Biscayne Bay Yacht Club, 530 F.2d

at 33.

8

The en banc majority saw involvement in member-

ship policies of the Club as the sine qua non for state ac-

tion. The dissent foresaw the danger of that approach:

Today the Court opens the door to subterfuge

because well within the bounds of this opinion

a governmental entity may accomplish indirectly

what it could never do directly by leasing public

property to a private segregated organization

and then disavowing any direct participation in

the discriminatory membership policies.

Id. 530 F.2d at 32.

This Petition for Writ of Certiorari seeks review of

the en bane majority’s conclusion as to state action and

poses the question of whether, in the context of racial

and religious discrimination state action can be avoided

by a disavowal of direct participation in the discrimina-

tion perpetuated by the “private” entity.

REASONS FOR GRANTING THE WRIT

I,

THE DECISION BELOW PRESENTS AN IM-

PORTANT ISSUE OF CONSTITUTIONAL

LAW WHICH AFFECTS THE RIGHTS OF

ALL CITIZENS AND THE OBLIGATIONS

OF GOVERNMENTAL ENTITIES TO PRO-

TECT THOSE RIGHTS.

9

The importance of the issues presented in this case

was made apparent in an opening paragraph of the en

bane decision :

So far as can be determined from a diligent

search of the precedents, this is the first time

in the history of Fourteenth Amendment juris-

prudence that a rederal district court has under-

taken the supervision of the membership poli-

cies in a genuinely private club.

Golden v. Biscayne Bay Yacht Club, 530 F.2d

at 17.

A decision co supervise or not to supervise affects

the constitutional rights of all citizens. On one hand, “The

associational rights which our system honors permit all

white, all black, all brown, and all yellow clubs to be

formed. They also permit all Catholic, all Jewish, or all

agnostic clubs to be established.” Moose Lodge No. 107 v.

Irvis, 407 U.S. 163, 179-180 (1972), Douglas, J., dissent-

ing. However, those associational rights must be exercised

independent of significant state involvement and support.

Gilmore v. City of Montgomery, 417 U.S. 556, 575 (1974).

Such involvement infringes upon the constitutional and

statutory rights of those discriminated against to be pro-

tected from denials of equal protection of the law.

Thus, any state action case involving racial and re-

ligious discrimination poses important legal problems af-

fecting the general public. The fact that decisions in these

cases instruct governmental bodies of their obligations to

protect Fourteenth Amendment rights when dealing with

private discriminatory organizations, and the limits of

10

their involvement with those organizations, adds to the

public importance of such cases.?

The opinion below is of special concern. Unlike the

state action cases previously presented, Burton, Moose

Lodge, and Gilmore, it presents a question of religious as

well as racial discrimination—a dual bias which offends

the principles upon which our nation was built. The crea-

tion of the Rhode Island Colony in 1636 by Roger Williams

was the cornerstone guaranteeing freedom from religious

discrimination. The Civil War and its constitutional and

statutory afteriuath laid the foundation for terminating

racial discrimination. At issue here are vestigial practices

which may sharply conflict with those notions of liberty.’

Judge Coleman, in his dissent to the original panel decision,

raised the spectre of an end to private clubs because of their ties to

property held in trust by the government:

I now take a look at other practical effects of this decision. All

around the Gulf of Mexico, the waterbottoms are publicly

owned. They are trust property and cannot be sold. They can

only be leased for a term of years. Under this decision we

say farewell to private yacht clubs, private hunting clubs,

or any other private club operating on such property and

leased exclusively to a named private lessee.

Golden v. Biscayne Bay Yacht Club, 521 F.2d at 356.

Implicit in his suggestion is the fact that those clubs practice

racial and religious discrimination. If they did not, there would have

been no need to say farewell to them under the original panel deci-

sion. By reversing that decision, the en banc Court has now bid wel-

come to discrimination by private clubs benefiting from state aid.

Governmental bodies, with obligations to all of their constituents,

should welcome a decision by this Court further clarifying their duties

when dealing with such clubs.

The religious bias aspect of this case may have special magnitude

as a result of the decision in Runyon v. McCrary, — U.S. __, 44

L.W. 5034 (June 25, 1976). Some private discrimination can now be

enjoined under 42 U.S.C. 81981 without showing state action. But

only §1983 and its requirement of state action will be available to

remedy religious discrimination. Thus, we may have the anomaly of

an organization’s racial bias being banned, but their religious bias

tolerated by law.

11

The division in the en banc Court of Appeals is of

significance because it underscores how firmly the ma-

jority and the dissent believe their respective assessments

are correct. Assessments which are wholly based upon this

Court’s instruction that:

Only by sifting facts and weighing circumstances

[on a case-by-case basis] can the non-obvious in-

volvement of the State in private conduct be at-

tributed its true significance.

Burton v. Wilmington Parking Authority, 365

US. at 722.

Using the guidelines set by this Court, the District

Court Judge and five Court of Appeals Judges have found

state action. Nine Court of Appeals Judges have found

no state action. There is no factual dispute presented. The

issue is merely the application of the governing law of

Burton, Moose Lodge and Gilmore to undisputed facts.

Since this Court is the ultimate arbiter of Consti-

tutional principles, and since three lower court decisions

have struggled to apply the Court’s guidelines in a case

which affects the general population and the duties of

governmental entities, it is vital that the question of state

action be resolved by this Court.*

The Petitioners, of course, contend that the decision below was

erroneous. Chief Judge Brown’s dissent carefully details the confluence

of facts which support the state action position. We do not belabor the

argument that the en banc majority was wrong because we recognize

that position, standing alone, is not enough to exercise the certiorari

power of this Court. But we believe that the importance of the ques-

tion plus the doubtful determination of the Court below adds weight

to this Petition. See Williams v. Lee, 358 U.S. 217, 218 (1959), in

12

II.

THE DECISION BELOW CONFLICTS WITH

THIS COURT’S DECISION IN GILMORE V.

CITY OF MONTGOMERY, 417 U.S. 556 (1974).

In Gilmore v. City of Montgomery, 417 U.S. 556

(1974), the Court prohibited the exclusive use of public

property by organizations which practiced racial] discrimi-

nation. The Court noted that “if the city or other govern-

mental entity rations otherwise freely accessible recrea-

tional facilities, the case for state action will naturally be

stronger.” Id. 417 U.S. at 574.

The bay bottom is a freely accessible facility. Boats

manned by sailors of all colors and religions “anchor out”

on it. But not on the bay bottom controlled by the Yacht

Club. There only white, Christian boaters tie up. The City

of Miami was aware of the discrimination. The City of-

ficials had a duty to enforce their own ordinances pro-

hibiting it; just as in Gilmore, the “city’s officials were

aware of this [desegregation] order and were responsible

for seeing that no action on their part would significantly

impede the progress [of desegregation]. Jd. 417 U.S. at

568.

which the Court granted certiorari because of the ‘important ques-

tion” and a “doubtful determination” by the lower court.

And, insofar as the decision below opens the door to subterfuge

by permitting a governmental body to deny participation in the dis-

criminatory practices, and thus threatens the effectiveness of §1983

as a remedy for enforcing the Fourteenth Amendment, we invoke the

analogous language of Perma Life Mufflers v. International Parts Corp.,

392 U.S. 134, 136 (1968). There certiorari was granted “because the

rulings by the Court of Appeals seemed to threaten the effectiveness

of the private action as a vital means for enforcing the anti-trust

policy of the United States.”

13

The action (and inaction) of the municipal officials

in Gilmore and Golden are similar. If state action was

present in Gilmore, it is present in Golden. The en banc’s

contrary conclusion therefore conflicts with Gilmore.

III.

THE DECISION BELOW PRESENTS IMPOR-

TANT CONSTITUTIONAL ISSUES WHICH

HAVE NOT BEEN, BUT SHOULD BE, DE-

CIDED BY THIS COURT.

“(T]he question whether particular conduct is pri-

vate on the one hand, or state action on the other, fre-

quently admits of no easy answer. Jackson v. Metropolitan

Edison Co., 419 U.S. 345, 349-350 (1974). Thus, the

“sifting” approach has evolved as the method for seeking

the solution to the question. Gilmore v. City of Montgom-

ery, 417 U.S. at 574.

In the process of resolving state action issues, this

Court has not stated that claims of racial discrimination

require a finer sifting. But Courts of Appeal have dis-

tinguished “between the degree of state action necessary

to impose constitutional restraints in cases concerning

racial discrimination and the high degree of state involve-

ment which is necessary for private conduct to be sub-

jected to Fourteenth Amendment sanctions when other

types of constitutional violations have occurred. The

Court’s willingness to find state action more readily in

racial discrimination cases is not hard to explain. After

all, such discrimination was the very condition that pre-

cipitated the enactment of the Fourteenth Amendment.”

Golden v. Biscayne Bay Yacht Club, 521 F.2d 344, 350-351

14

(footnotes omitted). Several circuits have noted the dis-

tinction. See, Greco v. Orange Memoriai Hospital Corp.

513 F.2d 873, 879-880 (5th Cir. 1975) ; Jackson v. Statler

Foundation, 496 F.2d 623 (2d Cir. 1974); Powe v. Miles,

407 F.2d 73, 82 (2d Cir. 1968); Edwards v. Habib, 397

F.2d 687, 693 (D.C. Cir. 1968). See also, Note, State Ac-

tion: Theories for Applying Constitutional Restrictions to

Private Activity, 74 Colum. L.Rev. 656, 657 (1974) ; Com-

ment, State Action and the Burger Court, 60 Va.L.Rev.

849 (1974).

Thus, two novel questions are presented in the instant

case: (1) does the degree of state action necessary to

impose Fourteenth Amendment restraints upon private

racial discrimination differ from that which is necessary

to impose those restraints upon other types of private un-

constitutional conduct; and (2) if so, does the higher stand-

ard also apply to religious discrimination?

The answers to these important queries would provide

additional guidance to the Courts of Appeal in state action

claims. The issue of state action is not a rara avis. Certio-

rari should be granted to provide that guidance.

15

CONCLUSION

For the foregoing reasons, Petitioners request that

the Court grant this Petition for Writ of Certiorari.

July, 1976

Respectfully submitted,

BRUCE S. ROGOW

American Civil Liberties Union

Foundation of Florida

Nova University Center for the

Study of Law

3301 College Avenue

Fort Lauderdale, Florida 33314

MAURICE ROSEN

16666 N.E. 19th Avenue

North Miami Beach, Florida 33162

WARREN S. SCHWARTZ

1140 N.E. 163rd Street

North Miami Beach, Florida 33162

MELVIN L. WULF

American Civil Liberties

Union Foundation

22 East 40th Street

New York, New York 10016

Counsel for Petitioners

APPENDIX

APPENDIX

Harold S. GOLDEN and David Fincher,

Plaintiffs-Appellees,

V.

BISCAYNE BAY YACHT CLUB et al.,

Defendants-Appellants.

No. 74-1349.

United States Court of Appeals,

Fifth Circuit.

April 15, 1976.

Before BROWN, Chief Judge, WISDOM, GEWIN,

BELL,“ THORNBERRY, COLEMAN, GOLDBERG,

AINSWORTH, GODBOLD, MORGAN, CLARK, RONEY,

GEE and TJOFLAT, Circuit Judges.**

COLEMAN, Circuit Judge.

A city leased to a private yacht club the bay bottom

land underlying club-constructed and club-maintained dock

facilities connected to the club lands on shore. The club

thus had exclusive use and control of the docks, a situation

which had existed long before the lease was executed. The

*Bell, Circuit Judge, heard oral argument and participated in

conference en banc. He concurred in this opinion (the comments on the

dissenting opinion excepted) on January 29, 1976, prior to his resigna-

tion on March 1, 1976.

**Dyer, Circuit Judge, did not participate in the consideration or

disposition of this appeal.

App. 2

District Court held that the existence of the lease, and that

alone, amounted to significant state involvement with the

membership policies of the club, 42 U.S.C., § 1988, Golden

v. Biscayne Bay Yacht Club, 370 F.Supp. 1038 (S.D.Fla.,

1973). The lease and the use of the docks were left undis-

turbed. Instead, it was ordered and adjudged:

“1. That the policy, practice and custom of defendant

Biscayne Bay Yacht Club in denying member-

ship to the members of the Jewish religion and

Black race is hereby declared violative of the

Fourteenth Amendment to the United States

Constitution.

“2. Defendant Biscayne Bay Yacht Club is hereby

ordered to cease the barring of membership to

applicants solely on account of their race and

religious affiliations. 370 F.Supp., at 1044.

“3. Jurisdiction is retained for the enforcement of

the decree.”

The judgment of the District Court was affirmed by

a panel of this Court, one Judge dissenting, Golden v.

Biscayne Bay Yacht Club, 5 Cir., 1975, 521 F.2d 344.

So far as can be determined from a diligent search of

the precedents, this is the first time in the history of Four-

teenth Amendment jurisprudence that a federal district

The Panel majority held, 521 F.2d at 348, that “Here is in-

volved a claim of racial and religious discrimination which seems

clearly to fall within the ‘zone of interest’ of the statutory language of

42 U.S.C.A., § 1983”. There was no cross appeal from the failure of

the District Court to find or assert jurisdiction under any other Civil

Rights statutes. The District Court decided only the § 1983 issue. We

do the same.

App. 3

court has undertaken the supervision of membership

policies in a genuinely private club. A majority of the

Judges of this Court in active service, one Judge not par-

ticipating, granted rehearing en banc.

Upon a thorough sifting of the facts and circumstances

of this case, we are of the opinion that the bay bottom lease

did not supply the requisite Fourteenth Amendment sig-

nificant state involvement in the membership policies of

the private club. Accordingly, we reverse the judgment of

the District Court and remand the case with directions to

dismiss the complaint.

Prologue

There are undisputed considerations which, at the

outset, ought to be taken into account.

The lessor was the City of Miami, organized in 1896.

The lessee was the Biscayne Bay Yacht Club, organized in

1887.

The case does not come here as a class action.

The club was genuinely private. The District Court

so found, and additionally held that “it certainly was not

formed as a subterfuge to evade the civil rights laws”, 370

F.Supp., at 1041. It performed no public function; it did

nothing that had ever been a public function. It neither

receives nor spends funds allocated from any public source.

The city had no part, and took not part, in the operations

or internal policies of the club. As to membership policies,

the District Court found that there was no evidence that

the city had been aware of any discrimination practiced

App. 4

by the club which would require termination of the lease,

370 F.Supp., at 1044.

The Panel majority opinion held that “the City pro-

vided substantial financial aid to the Club by making the

bay bottom land available for the token rental of $1.00 per

year’, 521 F.2d 352. If the District Court considered this

point it failed to mention it and made no finding that the

city contributed in any way, substantial or otherwise, to

the financial support of the club.

To be more specific, the District Court noted:

“Except for the existence of the lease, the City

of Miami has never participated in or been in-

volved in the operation of the Club.”

370 F.Supp., at 1040.

A fortiori, the issue on this appeal is whether the

lease, the sole nexus between city and club, supplied the

significant state involvement required to activate 42 U.S. C.,

§ 1983.”

The Law

This is not the kind of case in which we are left to

flounder blindly in search of the applicable law. On several

26

§ 1983. Civil action for deprivation of rights

“Every person who, under color of any statute, ordinance, regula-

tion, custom, or usage, of any State or Territory, subjects, or causes to

be subjected, any citizen of the United States or other person within

the jurisdiction thereof to the deprivation of any rights, privileges, or

immunities secured by the Constitution and laws, shall be liable to the

party injured in an action at law, suit in equity, or othe

ceeding for redress.” query r proper pro-

App. 5

occasions in the recent past the Supreme Court, as more

specifically discussed hereinafter, has carefully surveyed

the field and articulated principles governing significant

state involvement in private activities.

[1,2] The purpose of the Amendment and of the

statute, 42 U.S.C. § 1983, is to preserve and enforce, as

against state action, those rights, privileges, and im-

munities “secured by the Constitution and laws”. In the

absence of impermissible state involvement, it would hardly

be argued that membership in a private club, at the option

of the applicant, is a right or privilege enforceable in the

federal courts or anywhere else. Unless and until state ac-

tion, or action taken under color of state law, significantly

enters the lists on the side of impermissibly discriminatory

results, the internal membership policies of a genuinely

private club furnish no grist for the federal judicial mill.

See, e.g., The Civil Rights Cases, 1883, 109 U.S. 3, 3 S.Ct.

18, 27 L.Ed. 835; Shelly v. Kraemer, 1948, 334 U.S. 1, 68

S.Ct. 836, 92 L.Ed. 1161; Cooper v. Aaron, 1958, 358 U.S.

1, 78 S.Ct. 1401, 3 L.Ed.2d 5; Evans v. Abney, 1970, 396

U.S. 435, 90 S.Ct. 628, 24 L.Ed.2d. 634; Moose Lodge No.

107 v. Irvis, 1972, 407 U.S. 163, 92 S.Ct. 1965, 32 L.Ed.2d

627.

We begin our analysis with a thoroughgoing recogni-

tion of the teachings of a pioneer case in the field now

specifically under consideration, Burton v. Wilmington

Parking Authority, 1961, 365 U.S. 715, 81 S.Ct. 856, 6

L.Ed.2d 45.

Burton was a racial discrimination case. The object of

the complaint was a restaurant, leased from a state agency,

housed in a building owned and operated by that agency.

App. 6

The lease was needed to produce revenue to finance the

construction of the building. To a certain extent the res-

taurant enjoyed a portion of the tax exempt status of its

state owned landlord. The state agency furnished heat and

repairs; it received rent in the amount of $28,700 per

annum.

The state court held that the restaurant operated in

“a purely private capacity”.

The Supreme Court reversed, noting that the land and

building were publicly owned, that the building was dedi-

cated to public uses, the leased areas were not surplus state

property, they constituted a physical and financial inte-

gral, and they were an indispensable part of the State’s

plan to operate the project as a self-sustaining unit. The

operation conferred mutual benefits upon lessor and lessee.

Of no small moment was the fact that “profits earned by

discrimination not only contribute to, but also are indis-

pensable elements in, the financial success of a governmen-

tal agency”.

The conclusion was that:

“The State has so far insinuated itself into a

position for interdependence with [the restau-

rant] that it must be recognized as a joint partici-

pant in the challenged activity, which, on that

account, cannot be considered to have been so

‘purely private’ as to fall without the scope of the

Fourteenth Amendment.”

365 U.S., at 725, 81 8. Ct., at 862, 6 L.Ed.2d, at 52.

App. 7

The standard first announced in Burton, “that the

State had so far insinuated itself into a position of inter-

dependence with the restaurant that it was a joint partici-

pant in the enterprise,” was reiterated in Jackson v. Metro-

politan Edison Company, 1974, 419 U.S. 345, 357, 95 S.Ct.

449, 457, 42 L.Ed.2d 477, 487. Jackson was not a racial

discrimination case but the Court noted:

“Petitioner advances a series of contentions

which, in her view, lead to the conclusion that

this case should fall on the Burton side of the line

drawn in the Civil Rights Cases, supra, rather

than on the Moose Lodge side of that line. We

find none of them persuasive.”

419 U.S., at 351, 95 S.Ct., at 454, 42 L.Ed.2d, at

484.

Burton and Moose Lodge were racial discrimination

cases. The Supreme Court accepted them as lines of de-

marcation in Jackson’s case, although it did not involve

racial discrimination. The standard, state insinuation into

a position of interdependence so as to become a joint par-

ticipant in the challenged private activity, has been used

by the Supreme Court in both racial and non-racial cases.

The basic principle remains the same in either type case:

the facts either establish or do not establish significant

state involvement in the private activity.

In a § 1983 case involving alleged racial discrimination

by a nrivate club, the charge we have before us here, the

Supreme Court said:

App. 8

Where the impetus for the discrimination is

private, the State must have ‘significantly in-

volved itself with invidious diseriminations'.“

Moose Lodge, supra, 407 U.S., at 173, 92 S. Ct., at

1971, 32 L.Ed.2d, at 637.

The Court extensively discussed Burton, supra, with

obvious approval, and found “nothing approaching the

symbiotic relationship between lessor and lessee that was

present in Burton“, at 175, 92 S.Ct., at 1972, 32 L.Ed.2d

at 638.

The Court further informed us that the issue of sig-

nificant state involvement in private activities may be re-

solved only “by sifting facts and weighing circumstances”,

at p. 172, 92 S.Ct., at 1971, 32 L.Ed.2d, at 637. Burton, of

course, told us in 1962 that the Amendment’s embrace “can

be determined only in the framework of the peculiar facts

or circumstances present”, that is, on a case by case basis.

In any event, the Supreme Court told us in Jackson,

supra, 419 U.S., at 351, 95 S.Ct., at 453, 42 L.Ed.2d, at

484, citing Moose Lodge, 407 U.S., at 176, 92 S.Ct., at 1973,

32 L.Ed.2d at 639:

“[ T]he inquiry must be whether there is a suf-

ficiently close nexus between the State and the

challenged action of the regulated entity so that

the action of the latter may be fairly treated as

that of the State itself.” (Emphasis added).

In this connection, we recall Greco v. Orange Memorial

Hospital, 5 Cir., 1975, 513 F.2d 873, which involved a tax

exempt hospital mandatorily open to the general public,

App. 9

presumably burdened with all the nondiscriminatory duties

owed all persons within the public domain. Racial discrim-

ination was not at issue, but significant state involvement

in the operation was. The county owned the hospital and the

land on which it stood, costing $3,682,000 in public funds.

It was leased from the county under what amounted to a

perpetual lease for $1.00. In at least eight respects the

county retained control over the hospital. However, the

county participated neither directly nor indirectly in the

formulation of the disputed hospital policy (denial of elec-

tive abortions). 513 F.2d at 881.

In the light of those facts, this Court concluded:

“In summary, we find that Orange County is

not sufficiently connected with the Orange Mem-

orial Hospital Corporation’s activities to imbue

those actions with the attributes of the state.”

513 F.2d, at 882.

With the Chief Justice and Mr. Justice White dissent-

ing because of conflicts within the Circuits, the Supreme

Court denied certiorari, Greco v. Orange Memorial Hospital

(1975, 44 U.S.L.W. 3328) — U.S. , 96 S.Ct. 433,

46 L.Ed.2d 376.

Facts

The law is plain.

We now proceed to the sifting of the facts and circum-

stances. The basic facts are not in dispute—only the proper

legal conclusion to be drawn from those facts is at issue.

The clearly erroneous rule does not come into play.

App. 10

As already noted, the Biscayne Bay Yacht Club is a

genuinely private club. So far as the record shows, it has

never had any black or Jewish members. It was not founded

for the purpose of evading any Civil Rights laws. Its exist-

ence antedates that of the city from which it holds a bay

bottom lease.

The club does not now perform, and has never per-

formed, any public function. It receives no support from the

public treasury and has never received any. It does have the

exclusive use of dock facilities of its own construction and

maintenance, for which it pays the City of Miami one dol-

lar for a lease on the waterbottoms over which those fa-

cilities are constructed. There is no finding in this record

that the lease fee is grossly inadequate, amounts to subsidy

for the club, or represents a substantial financial contri-

bution to the operation of the club.

The club does not monopolize access to or the use of

the public waters of Biscayne Bay. The District Court did

not suggest, nor is there any substantial reason to believe,

that the club significantly interferes with such use or ac-

cess. Indeed, public dock facilities are located near those of

the club. The District Court made no finding, and we do

not know, how many private docks extend into the Biscayne

Bay waterfront, by the hundreds or otherwise, nor do we

know how many are built over bay bottoms leased from

the city, or for what consideration paid the city.

We do know, for the District Court so found, and it is

undisputed, that “except for the existence of the lease, the

City of Miami has never participated in or been involved

in the operation of the Club”, 370 F.Supp., at 1040. This

means, of course, that the city played no part whatever in

App. 11

the membership policies of the club. The District Court

found that there was no evidence before the Court that the

City of Miami was “aware of the discrimination practiced

by the Biscayne Bay Yacht Club which would require the

the City to terminate its lease”, 370 F.Supp., at 1044.

There have never been any membership requirements

or restrictions related to or predicated upon either race or

religion but membership can be obtained only by sponsor-

ship of three club members and by secret ballot of the club.

The result of this internal membership policy has been, and

is, that the club has no black or Jewish members.

On these facts, the Court held that the lease to the bay

bottoms underlying the dock facilities was “essential to the

club’s operation”, that it was “vital to the operation of a

yacht club”, and that the “ ‘symbiotic relationship’ between

the state and the Club exists, thereby making any discrim-

inatory action by the Club a violation of the Fourteenth

Amendment (citing Burton)”, 370 F.Supp., at 1042.

The Lease History

The first yacht race on Biscayne Bay, with fifteen

boats participating, took place on Washington’s birthday,

1887, about nine years before the City of Miami became an

organized municipality.

Shortly afterwards the Biscayne Bay Yacht Club was

organized at the Peacock Inn. The club was incorporated

under the laws of Florida in 1893 and subsequently re-

incorporated as a non-profit corporation in 1969.

The club room remained at Commodore Monroe's boat-

house until 1909. It then moved into its own building, a

App. 12

two story structure, built on piling at the end of the dock,

but still on the Commodore’s property. Later, a new station

on the bayfront a short distance north of Flagler Street was

built over the water, with a long dock in front. This had to

be abandoned in 1925 because of the construction of the

Bayfront Park. Another building was leased but the club

soon fell on hard times, caused by the hurricane of Septem-

ber, 1926, by the collapse of the Florida boom, and by the

failure of the Bank of Bay Biscayne. In 1932, however, the

club obtained its present property, located at 2540 South

Bayshore Drive, Coconut Grove.

Thereafter, for thirty years, 1932-1962, things sailed

along with clear skies, fair winds, glassy seas, and even

keels. In 1962 the City of Miami asserted title to the bay

bottoms under the dock facilities of the Biscayne Bay Yacht

Club. This was thirteen years after 1949, when, for ten

dollars, the Trustees of the Florida Internal Improvement

Fund had conveyed portions, if not all, of the bay bottoms

to the city. The 1962 assertion of title was handled by the

club leasing the bay bottoms which supported its dock fa-

cilities for a dollar a year. The record suggests that this

may have been done under protest but the District Court

makes no finding as to whether the City of Miami actually

had valid title to the bay bottoms or what the riparian

rights of the club may have been. We are left with Footnote

2, 370 F.Supp. 1040, that “Neither side has raised the issue

of whether riparian rights were vested in the Club prior

to 1962”. Nothing is said about riparian rights since 1962.

In any case, the lease is there, the club is obviously accept-

ing its benefits, whatever they may be, so we decide the

case in the light of its existence.

It is not to be overlooked, however, that the 1962 lease

wrought no change in a situation which had uninterrupt-

App. 13

edly been in effect for thirty years. The club had been there

all the time. The docks had been there all the time. After

the execution of the lease the club ran exactly as before.

Indeed, there is nothing to indicate that anybody intended

the lease to cause any change in those operations. The

fact is that the City of Miami laid claim to title to the bay

bottoms underlying the docks. The question was not liti-

gated but was resolved by the execution of the lease.

Since the lease was the sole nexus between the city and

the club, and since the District Court found that the lease

significantly involved the city in the internal operations of

the club, we do not know why the Court did not cancel the

offending appendage and simply enjoin the use of the docks.

In cases involving the attempted conversion of property

formerly public into impermissible private uses this Court

has cancelled leases and set aside sales. See, e.g., Wright v.

City of Brighton, 5 Cir., 1971, 441 F.2d 447 (sale res-

cinded) and United States v. State of Mississippi, 5 Cir.,

1974, 499 F.2d 425 (lease cancelled). This uld have left

this private club free to use its own club house, situated on

its private property, as it saw fit, which, under the Con-

stitution of the United States it clearly would have had the

right to do. This, of course, would have forestalled federal

court intervention into the internal affairs of a genuinely

private club and it would have forestalled even the slightest

claim of plaintiff-appellees to membership in the club.

Perhaps the outcome was influenced by a strong prac-

tical consideration. If the docks had been cut loose from the

club they, for all practical purposes, would have been use-

less. No one could have obtained access to them or egress

from them across the private property of the club. The abil-

ity to drive up in a boat or leave in a boat would have been

App. 14

of little value if one were nevertheless marooned at that

point from dry land.

Our Decision as to Significant State Involvement

[3] On the law as above discussed, and on the facts

as above recited, we have the same opinion of this case that

the Supreme Court had in Moose Lodge, supra: the facts

and circumstances fall far short of the symbiotic relation-

ship found in Burton, supra. As a matter of law and fact,

they fall short of establishing that the City of Miami has

so far insinuated itself into a position of interdependence

with the club that it must be recognized as a joint partici-

pant in the internal membership policies of the club. The

City of Miami has not significantly involved itself in those

membership policies. The lease does not provide a suffi-

ciently close nexus between the city and the club so that the

action of the club may be fairly treated as that of the city.

Both the District Court and our Panel which originally

heard this appeal obviously applied the “but for” rule to

this situation. The Panel said “without the city’s lease of

the bed of the bay the club could not exist“. Leaving aside

the fact that this private club had been in operation for

many years, with docks occupying the bay bottoms, before

the city laid claim to title, we think the Supreme Court

attributed little significance to the “but for” situation ap-

pearing in Moose Lodge. But for the liquor license the pri-

vate club could not have sold drinks. It requires no huge

store of imagination to know in 1976 that without the abil-

ity to supply drinks private clubs would, at best have a hard

time existing. In any event, the “but for” element did not

rear its head in the decision in Burton, which did involve a

lease to public property, without which the restaurant could

App. 15

not have existed. If the “but for“ approach were enough,

the Supreme Court could have swiftly disposed of Burton

with one of the shortest per curiams on record. Neither is

it to be overlooked that Burton was concerned with a place

offering public accommodation, not a private club. See,

Moose Lodge, supra, which was concerned with a private

club. See, also, case note on the Panel decision in this case,

54 Texas Law Review 642 (1976).’

Some I...idental Issues

In June and July of 1968 the City of Miami enacted

lengthy, extensive ordinances prohibiting any form of ra-

cial or religious discrimination by lessees of city owned

land. The ordinances were not only prohibitory but pre-

scribed affirmative action by the lessees, such as opening

up membership rolls, prohibiting selection of members by

secret ballot, directing that applicants for membership

should not be required to have sponsors, and the like.

The District Court noted the existence of these ordi-

nances, 370 F.Supp. 1040-1041. However, the case was de-

cided solely on Fourteenth Amendment grounds. There is

no cross assignment of error by the appellees, raising any

issues of pendent jurisdiction relief. We consider, therefore,

that we have only a § 1983 case.

The District Court did not consider or decide whether

the Miami ordinances applied to bay bottom lessees. If the

The author of the Texas Law Review article wrote: The cumu

lation of the factors relevant to state action analysis demonstrates that

the state’s involvement with the Biscayne Bay Yacht Club is insuf-

ficient to classify the club’s exclusion of plaintiffs as state action. .

Both policy and precedent require that the Fifth Circuit, considering

the case en banc, reverse the panel’s decision”. [At 652].

App. 16

ordinances do apply, it was not decided whether they pro-

vided appellees with an adequate remedy at law (forestall-

ing injunctive procedures). Nothing was said about a fail-

ure to enforce the ordinances as possibly supplying grounds

for Fourteenth Amendment relief. In short, the opinion and

judgment below did not rely on the ordinances. We leave

them where the District Court left them.

One final word. This is not a class action suit. There

were two plaintiffs. Mr. Fincher is black. Mr. Golden is

Jewish. About these plaintiffs the Court made the follow-

ing cryptic comment:

“Plaintiff Fincher did not appear to the court

to be a boating enthusiast. Plaintiff Golden testi-

fied at length about his boating skills and un-

equivocally asserted that the only reason the Club

denied him membership is because he is Jewish;

the court does not share Mr. Golden’s conclusion.”

370 F.Supp., at 1043.

From this it could be inferred that Mr. Fincher was

not a very appropriate candidate for membership in a yacht

club and that Mr. Golden was not denied membership on

account of his religion. The Court nowhere specifically

found as a fact that either was rejected on account of race

or religion. It did say that their inability to get a recom-

mendation amounted to a rejection and thus gave them

standing to challenge the membership policies of the club.

It did not expressly find as a fact that their inability to get

a recommendation was caused by reasons of race or reli-

gion. That the Court thought so reasonably appears, how-

ever, from the opinion, considered as a whole. It may be

that the standing of Fincher and Golden was too thin. See,

e.g., Rizzo v. Goode [1976, 44 U.S.L.W. 40951 US.

— Sa ae we

App. 17

— 96 S.Ct. 598, 46 L.Ed.2d 561. We have concluded,

however, not to allow this point to decide the disposition of

the appeal.

The dissenting opinion emphasizes that the Miami ord-

inances “became a part of this and other similar leases by

the City of public property”. The ordinances repeatedly re-

fer to “facilities”, and nothing else. Query: Is a bay bottom

a facility? We indicate no opinion on the subject because,

in the posture of this appeal, we regard the applicability

of the ordinances as not before us for review and thus

immaterial.

In like manner, we attribute no significance to Gold-

en’s failure, all the way through the Florida Court of Ap-

peals, to secure an adjudication that the ordinances do

apply to bay bottom land. Possibly, he chose the wrong

procedure or sought the wrong relief. As to this the record

is silent and such blind spots are not to be illuminated by

appellate guess work.

Our decision is founded on the case made by the parties

and decided by the District Court. That Court found as a

fact that the existence of the lease was the sole nexus be-

tween the City of Miami and the Biscayne Bay Yacht Club.

The Court further held that this, alone, amounted to sig-

nificant state involvement with the club and its member-

ship policies.

For all the reasons hereinabove articulated, we must

disagree.

The judgment of the District Court is reversed and

the cause remanded with directions to dismiss the com-

plaint.

REVERSED and REMANDED with Directions.

App. 18

JOHN R. BROWN, Chief Judge, with whom WIS-

DOM, GOLDBERG, GODBOLD and CLARK, Circuit

Judges, join (dissenting) :

I respectfully dissent for I cannot place my imprima-

tur on a decision which fails to perceive the realities of the

racial and religious discrimination presented by the facts

of this case, which implicitly if not explicitly emasculates

prior Fifth Circuit cases, which I believe were rightly de-

cided, and which cannot be squared with controlling Su-

preme Court precedent.

Part I

My position is reflected by all that I said in my opinion

for the Court 521 F.2d 344, when this case was originally

considered and which I readopt.

In this opinion I referred numerous times to the test

of significant state involvement. I think that is a proper

test. Judge Coleman makes the point in his dissent, car-

ried ward into his opinion for the en banc court, that

any lease is “significant state involvement.” The answer

to this is, of course, that our concern is with legally sig-

nificant involvement and not with involvement in a sine

qua non sense. Whether involvement in the “but for” sense

is of sufficient legal significance requires case by case

analysis.

Part II

At the outset as we get underweigh from the starting

bouy in assaying the Court’s en banc opinion, several things

should be gotten out of the way. First, the Court, with

expected candor, assumes at least arguendo that Golden,

App. 19

the Jew, and Fincher, the Black, have standing to challenge

the racial-religious discrimination practices of BBC.

Second, and even more important, the Court recog-

nizes that the District Judge found racial-religious dis-

crimination in the membership policies of the Club, as

indeed it had to in the face of the findings and conclusions

of the District Judge which are above the Plimsoll line of

F. R. Civ. P. 52 (a) and which were clearly mandated both

by the testimony of the officers of BBYC’ and its By-

The Court states:

“It may be that the standing of Fincher and Golden was too

thin. See, e.g., Rizzo v. Goode [1976, 44 U.S.L.W. 4095] — US.

__, 96 S.Ct. 598, 46 L.Ed.2d 561. We have concluded, however,

not to allow this point to decide the disposition of the appeal.

530 F.2d page 23.

The Court states:

“The [District] Court nowhere specifically found as a fact

that either [Golden or Fincher] was rejected on account of race or

religion. It did say that their inability to get a recor ndation

amounted to a rejection and thus gave them standing to challenge

the membership policies of the club. It did not express the find-

ings of] fact that their inability to get a recommendation was

caused by reasons of race or religion. That the Court thought so

reasonably appears, however, from the opinion, considered as a

whole.”

530 F.2d page 23.

The Judge stated:

With these [demographic] figures in mind, it taxes credulity

that the defendant Club can state without reservation that it prac-

tices no discrimination and yet, at the same time, is unable to

state whether it has ever had a Black or Jewish member in its

eighty six years of operation. 370 F.Supp. at 1043. The court

concludes that plaintiffs have not been afforded the same rights

to membership as their White and Christian counterparts. Id. The

facially neutral policy before the court is the sponsorship method

of membership in the Biscayne Bay Yacht Club. While the spon-

sorship requirement is applicable to Black and White and Jew

and Christian alike, in a club whose members from inception have

been only White and Christian, the effect of the sponsorship re-

quirement is to deny Blacks and Jews any meaningful opportunity

for membership. (Citations omitted). Id.

App. 20

Laws* which did not recognize the right of any person

Black, White, Christian, Jew or Moslem to “apply” for

membership. They restricted processing of prospective

memberships to 3 sponsors who could extend an “invita-

tion“ when, and only when, the eightman membership

*The By-Laws in pertinent part provide:

ARTICLE VI

ELECTION OF MEMBERS

Sec. 1. INVITATION TO MEMBERSHIP. Membership as to

all classes of members except Life, Ex-officio, and Juniors qualified

to transfer subject to Article V, Section 6, shall Le attained by the

following procedure:

A. A candidate for membership shall have three sponsors

who shall file with the Secretary letters by each of them con-

cerning his or her qualifications therefor, to go with a form

to be furnished by the Secretary to the sponsors upon appli-

cation for the same, whereon detailed data concerning the

candidate will be set forth and signed by each of the sponsors.

B. Promptly upon receipt of the form and accompanying

letters of the sponsors, the Secretary shall send out a notice

to all Senior and Life members giving:

1. The name of the candidate.

2. His or her sponsors.

3. The date upon which the Membership Committee will

next meet to consider all candidates.

C. Any Senior or Life member wishing to express his views

concerning a candidate may so do in writing (to be held

strictly confidential] by delivering his letter to the Secretary

prior to the next Membership Committee meeting, or he may

appear in person before such committee and present his views.

Immediately following final action by the Membership Com-

mittee regarding any candidate, the Secretary shall destroy

all letters received regarding such candidate, with the excep-

tion of the letters of the sponsors, which shall remain in the

file of the Secretary.

D. The Board of Governors, acting as a membership com-

mittee, shall after due investigation vote by secret ballot on

each candidate, but until at least ong | (30) days have

elapsed after notice has been mailed by the Secretary to the

Senior and Life members with respect to such candidate. The

board shall not sit as such membership committee unless at

App. 21

committee had approved the candidate under a structure

which made the three-man blackball pennant a final re-

jection after which virtually all of the supporting materials

were to be destroyed.

Thus we are faced squarely with the problem of

whether, in the operation of BBYC and its essential de-

pendence on its mooring docks which rest not only on the

bay bottom but are bottomed on the essential lease from the

city, there is sufficient state involvement under § 1983.

The majority court, misled perhaps by the trial court’s

conclusion (No. 4) that there was no evidence . . before

the court that defendant City of Miami was aware of the

discrimination practiced by” BBYC, 370 F.Supp. at 1044,

made as a prefatory remark to denial of relief against the

Mayor and City Commissioners,’ gives the impression that

least eight members are present, and no invitation to member-

ship shall be extended if as many as three members of said

committee shall vote unfavorably on the candidate. If the

Membership Committee fails to approve a candidate after

such secret ballot, he or she shal] not be eligible to be con-

sidered again until the expiration of twelve months from the

date of such disapproval.

E. If the Membership Committee approves a candidate for

invitation to membership, the Secretary shall advise the

sponsors and then, and not until then, may the sponsors ex-

tend the invitation to the candidate, and they shall report to

the Secretary whether the inyitation has been accepted; and

if accepted, the Secretary shall confirm to the candidate the

invitation and acceptance, and the membership of the club

shall be advised thereof in the next monthly notice.

The Court states: a

No evidence being before the court that defendant City of

Miami was aware of the discrimination practiced by the Biscayne

Bay Yacht Club which would require the City to terminate its

iease, and assuming that defendant Biscayne Bay Yacht Club will

comply with the court’s Order and immediately cease its discrim-

inatory practices, no relief is appropriate against defendant mayor,

or commissioners. 370 F.Supp at 1044.

App. 22

all of this was a great big shock to the City of Miami and

its was completely innocent of what was going on or, more

significantly, what was said was going on in terms of vio-

lation of peoples constitutional rights.“

But this is far from correct. Although it must readily

be conceded that at the time of the initial 1962 lease the

City had no record-established awareness of the member-

ship policies of BBYC or even an awareness, cf. Wood v.

Strickland, 1975, 420 U.S. 308, 95 S.Ct. 992, 43 L.Ed.2d

214; Scheuer v. Rhodes, 1974, 416 U.S. 232, 94 S.Ct. 1683,

40 L.Ed.2d 90 that § 1983 would be judicially orbited to

its current apogee, much water has gone over the dam in

the intervening years to bring this sharply to the con-

sciousness of the City Fathers. Indeed, at that very time,

the City was acutely aware of the limitations to public use

imposed by the 1949 deed from the Internal Improvement

Fund, State of Florida.’

No appeal was taken from this part of the order so we are not

faced here with the problem of the scope and nature of relief available

against erring municipal officials, either in their personal or official

capacities, as “persons” under § 1983 on which the Court en banc has

recently ruled. See Muzquiz v. City of San Antonio, 5 Cir., February 27,

1976, 528 F.2d 926 (en banc), original panel opinion 520 F.2d 993;

Warner v. Board of Trustees of the Police Pension Fund Of The City of

New Orleans et al, 5 Cir., February 27, 1976, 528 F.2d 505, original

panel opinion 522 F.2d 1384.

The Deed from the Internal Improvement Fund to the City of

Miami (Plf. Ex. 11) states:

PROVIDED, HOWEVER, anything herein to the contrary not-

withstanding this deed is given and granted upon the further ex-

press condition subsequent that the Grantee herein or its successors

and assigns shall never sell or convey or lease the above described

land or any part thereof to any private person, firm or corporation

for any private use or purpose, it being the intention of this re-

striction that the said lands shall be used solely for public purposes,

including municipal purposes and not otherwise.

PROVIDED, FURTHER, anything herein to the contrary notwith-

App. 23

Because the 1962 lease was expressly subject to these

conditions, the parties sought and obtained from the Trust-

ees of the IIF a release of the restriction in the 1949

deed “limiting the use of the lands conveyed therein to

municipal purposes”. In the waiver IIF found that such

“improvements will help relieve the acute shortage of pub-

lic dock facilities existing in the City of Miami.” The

waiver was effective during the life of the lease but to

“terminate and cease to be effective upon cancellation or

termination of the lease”. The waiver, however was sub-

ject to specific conditions which, if not then readily recog-

nizable as significant, became so by the events of 1968 and

the renewal of the lease in 1970.“

Now enters Golden, the persistent, tenacious advocate

for the obliteration of the last vestiges of state ordained

racial or religious discrimination. Through his appearances

standing, this deed is given and granted upon the further ex-

press condition subsequent that the Grantee herein or its succes-

sors or assigns shall not give or grant any license or permit to any

private person, firm or corporation to construct or make by any

means, any islands, fills, embankments, structures, buildings or

other similar things within or upon the above described lands or

any part thereof for any private use or purpose, as distinguished

from any public or municipal use or purpose. (emphasis supplied).

8Provided, however, that this Waiver is executed to the following

conditions:

(1) The City Commission retains the authority to cancel said

lease agreement in the event any development would occur in

the operation by the lessee of the leased premises which is

inimical to the general public interest.

(2) That the City Commission of the City of Miami retains the

authority to cancel said lease agreement in the event of a need

for the leased lands for public purposes other than the munici-

pal purposes found herein.

(emphasis supplied)

App. 24

before agencies of the city, if not the City Commission it-

self, Golden took a major role in drafting the ordinances’

designed to prevent racial and religious discrimination

which by their terms became a part of this and other simi-

lar leases by the City of public property.

By the ordinance adopted 13 June 1968 (amended with

no significant changes as to this case July 11, 1968) the

City in language which would do credit to a Bicentennial

constitutionalist declaring in the prefatory whereas pream-

ble the necessity “that all of its residents be afforded equal

opportunity and protection under the Constitution and

Laws of this nation” and reaffirming its policy to “prop-

erly protect all of its citizens regardless of race, creed,

religion, color or national origin, in their basic constitu-

tional rights”, adopted a far reaching but highly specific

act ordaining in Section 1 that the lessee of any property by

the City will not discriminate against or “shall not discrim-

inate against or refuse or deny to any person or persons,

guests or permittees, the use of facilities leased from the

city because of race, creed, religion, color or national ori-

gin”. The ordinance then set up a detailed code opening up

any such lessee club or organization to all persons without

discrimination and prescribing the conditions and require-

ments for the operation of such lessees in their membership

policies and practices. Of unusual importance was the

statutory declaration (Sectior 3) that the ordinance “being

a implementation of the provisions of the Constitution of

the United States of America.. , said provisions are to be

considered a part of every such lease as described . . . re-

Acting perhaps as a sealawyer, Golden did the original drafts of

these ordinances but the final drafts were prepared by the City At-

torney’s office. R. at 28, 35.

App. 25

gardless of the specific written terms of any lease now

existing or to be entered into in the future“.

Section 1. That ge lessee of any property of which the: City of

Miami is the owner shall not discriminate against or refuse ur deny to

any person or persons, guests or permittees, the use of the facilities

leased from the City because of race, creed, religion, color or national

origin.

Section 2. That in order to facilitate the implementation of the

policy of the City of Miami as set forth in Section 1, in instances

wherein leases are entered into between the City of Miami and e

tions or clubs for the use of City property or City facilities by the

members thereof, said organizations or clubs shall comply with the

* requirements:

I. Membership in the said club or organization shall be

available to all persons without discrimination as defined in Sec-

tion 1 hereof.

II. There shall be no requirement that applicants for enroll-

ment be sponsored by anyone as a condition to such applicant

being r or accepted for membership. 7

II. The club or organization shal] make a minimum of

five per cent of existing enrollment of the various types of mem-

bership in such club or organization available for new enrollment

for a minimum period of thirty days of each year, the first such en-

rollment period to commence September 1, 1968. In the year 1969

the enrollment period shall commence July Ist of each year there-

after. In the event there is more than one type of membership

available, this shall mean five per cent of each type of member-

ship shall be open to the general public.

IV. Acceptance into membership shall be determined by

simply majority vote of the general membership at a meeting

designated for such purpose, and there shall be no secret ballot for

admission to membership

V. In the event there are a greater number of applicants

than there are openings available for membership under the an-

nual five per cent of enrollments as set forth above, then, and in

that event, new members in this enrollment period shall be selected

by lot.

*VI. Within the thirty day period prior to the date of the

commencement of the enrollment period described above (sub-

section III), the club or organization shall advertise twice in two

daily newspapers of general circulation published in the City of

Miami a notice of the acceptance of new members as hereinabove

provided, and notice of the purposes of the club or organization

and of the programs offered by the club or organization to the

App. 26

But Golden did not rest upon his oars. Convinced that

these ordinances were not being complied with by BBYC

public. Said notice for the year 1968 shall be printed on the first

and fourteenth days of August. For the year 1969 the notice shall

be printed on the first and fourteenth gays of June, and on the

first and fourteenth days of June of each year thereafter.

B. Dues—All members in each of the various categories of mem-

bership shall pay equal dues, if any, within said categories

C. Minutes of Meetings All minutes of meetings, whether regu-

lar meetings er special meetings, or however designated, of said

club or organization shall be posted upon the bulletin board upon

the club premises within thirty days after the date of such meet-

ings, and a copy thereof shall be forwarded to the City Manager

of the City of Miami, or his designee.

D. Privileges—All members in each category shall have equal

rights and privileges.

Section 3. The foregoing matters as set forth in Section 1 and

2 above being an implementation of the provisions of the Constitution of

the United States of America and the Constitution of the State of Flor-

ida, said provisions are to be considered a part of every such lease as

described above entered into between the City of Miami and any person,

firm, corporation, club or organization, regardless of the specific written

terms of any lease now existing or to be entered into in the future.

Section 4. That any person, firm, corporation, club or organiza-

tion violating the terms and conditions of this ordinance shall be sub-

ject to having its lease forthwith terminated by the City of Miami for

said violation, upon due notice to the violator and upon an opportunity

to be heard before the Commission of the City of Miami concerning

said violation.

Section 5. That all ordinances, code sections or parts thereof in

conflict herewith, insofar as they are in conflict, are hereby repealed.

Section 6. If any section, sentence, clause, phrase or word of this

ordinance is for any reason held or declared to be unconstitutional, in-

operative or void, such holding or invalidity shall not affect the remain-

ing portions of this ordinance; and it shall be construed to have been

the intent of the Commission of the City of Miami to pass this ordinance

without such unconstitutional, invalid or inoperative part therein; and

the remainder of this ordinance, after, the exclusion of such part or

parts, shal] be deemed and held to be valid as if such parts had not been

included herein.

Section 7. This ordinance is hereby declared to be an emergency

measure upon the ground of urgent public need for the preservation of

peace, health, safety and property in the City of Miami, and the re-

—— —

App. 27

he began a long, and a least at this point, unsuccessful

battle to vindicate these rights. Before taking formal ac-

tion, Golden informed the City Attorney of the ordinance

violations by the club by letter to which there was no re-

ply.“ Thereafter he appeared before the City Commission

with no success.’?

In the meantime BBYC sought and on March 6, 1970

obtained an amendment to the 1962 lease for approximately

one additional acre of adjacent land to “permit construc-

tion of additional concrete dock and timber mooring piles

... being an extension of the existing dock... The amend-

ment was expressly made subject to the restrictions im-

posed by IIF in the 1962 waiver (see note 8 supra) '’. Again,

IIF granted a waiver on the same prescribed conditions.

Despairing of his failure in the municipal-legislative

approach and presumably unwilling to see his constitutional

craft strand on municipal inaction Golden filed in April of

1970 a petition for writ of mandamus in the state Circuit

Court of Dade County against the City of Miami. In it he

quirement of reading this ordinance on two separate days is hereby

dispensed with by a vote of not less than four-fifths of the members of

the City Commission.

*The sections of Ordinance 7668 which are asterisked appear as

amended by Ordinance 7682 which was adopted July 11, 1968. In ad

dition to amending the two sections of 7668 indicated above, Ordinance

7682 includes the following pertinent section :

Section 6. This ordinance is hereby declared to be an emer-

gency measure upon the ground of urgent public need for the pres-

ervation of peace, health, safety and property in the City of Miami,

and the requirement of reading this ordinance on two separate

days is hereby dispensed with by a vote of not less than four-fifths

of the members of the City Commission.

IR. at 36-37.

12R. 27-28.

These became conditions J and 2.

App. 28

asserted under oath his failure to obtain admission to

BBYC because of the procedure requiring 3 sponsors (see

Note 4 supra and accompanying text). He then set forth

the specific requirement of the July 1968 ordinance (see

Note 10 supra) requiring lessee clubs to admit new mem-

bers one month of the year without requirement of spon-

sorship and the fact that BBYC has failed to comply with

the ordinance and the City has failed to invoke the penalty

despite demand and personal appearance by Golden before

the City Commission. He sought cancellation of the lease as

the ordinance provides. The prayer was for an “Alterna-

tive Writ of Mandamus requiring the Respondent [the

city] to enforce the above mentioned ordinance and to re-

quire [BBYC] to comply with the said ordinance or to

show cause . . why it should not enforce” the ordinance.

The City responded by motion to quash and on September

15, 1970 Circuit Judge Cullen by an unilluminating order

granted the motion to quash but, of great importance, ex-

pressly prescribed that it was “without prejudice to bring

such appropriate action as may be available to petitioner”.

Presumably unwilling to run any risk of exhaustion of

remedy as a prelude to a § 1983 suit as an “appropriate

action” Golden then appealed to the District Court of Ap-

peals which affirmed without opinion.

Came then the instant § 1983 suit in February 1974,

6 years after Golden, as Mordecai at the gate, had initiated

his lamentation and helped lobby the enactment of the

ordinance, 4 years after the execution of an amendatory

lease, and 2 years after the City had positive notice through

the mandamus proceeding that BBYC, as lessee, was en-

i

!

!

—

App. 29

gaging in elaimed denial of membership on the basis of race

and religion.“

This continuation of the relationship between the City

and BBYC—whether by formal extension of the lease or

acquiescence in its continued enjoyment—in the light of the

charge and now judicially credited fact of racial-religious

discrimination demonstrates that this is state action

whether viewed as Moose Lodge, Burton, or an amalgam

of them with Gilmore. Whatever its motive—and this is

irrelevant in § 1983—the City has inescapably insinuated

itself into the continued availability of an essential facility

which it knows now is operated to exclude nonmembers,

which is to say Jews and Blacks. See Burton v. Wilmington

Parking Authority, 1961, 365 U.S. 715, 725, 81 S.Ct. 856,

862, 6 L.Ed.2d 45, 52. There is thus a confluence of state

participation in the relationship and state participation in

the discrimination itself. See New York Jaycees, Inc. v.

United States Jaycees, Inc., 2 Cir., 1975, 512 F.2d 856,

858 citing, Powe v. Miles, 2 Cir., 1968, 407 F.2d 73, 81;

Jackson v. Metropolitan Edison Co., 1974, 419 U.S. 345,

95 S.Ct. 449, 42 L.Ed.2d 477.

Although motive may be irrelevant to § 1983 liability,

the interplay of city and club purposes in this case has a

significant impact on the result of the assay for Burton

synergism. Indeed, the enhancement of causes and effects

“The District Court noted “that the City has adopted a resolution

deferring any extension of the lease with the Club pending this deci-

sion.” [370 F.Supp. at 1044] (See Plf. Ex. 12, R. 63)

'SWhat Moose Lodge involved was the right of guests, not those

seeking membership, 407 U.S. at 170-71, 92 S.Ct. at 1970, 32 L.Ed.2d

at 636 a significant difference from those claiming the right to com-

pete for membership for use of facilities which could not exist without

the City lease.

App. 30

which take place here orbit about BBYC’s racial and re-

ligious discrimination. The consideration passing to the

city for granting the club the exclusive use of this seg-

ment of scarce bay bottom space is not the token $1 per

year. It is the assurance that BBYC’s white non-Jewish

members will be able to moor their yachts at docks on this

state-owned land instead of at an overcrowded public pier.

For its part, BBYC attorns its annual $1 because it needs

this public bay bottom like a dead man needs a coffin.

Without this public property it may continue to be a club,

but it certainly will not continue to be a yacht club.

Part III

Of course this case presents in stark form the anomaly

of there being significant state action through the munici-

pality while the municipality (and perhaps its animate

functionaries, see note 10 supra) has effective immunity as

a non “person” under § 1983. City of Kenosha v. Bruno,

1973, 412 U.S. 507, 93 S.Ct. 2222, 37 L.Ed.2d 109. See also

Moor v. County of Alameda, 1973, 411 U.S. 693, 95 S.Ct.

1785, 36 L.Ed.2d 596; Monroe v. Pape, 1961, 365 U.S. 167,

188-93; 81 S.Ct. 473, 484-87, 5 L.Ed.2d 492, 505-07. But

nonetheless the ordinance (note 10 supra) is of unusual

significance. Its incorporative provision (Section 3) means

that the terms of the ordinance are read into the lease. The

ordinance imposed burdens both on the city, as lessor, and

the lessee, BBYC. Each was subject to the stringent man-

dates against racial and religious discrimination and the

means adopted by the legislative body as a reasonable way

by which to achieve the mutually adopted goals.

Under the structure of the ordinance and lease made

under and subject to it, the lessee was burdened down with

App. 31

all of the prohibitory and affirmative mandates, except

possibly the obligation or responsibility of initiating

criminal prosecutions or overseeing the exaction of such

penalties.

Of course, enforcement of city policy, reflected by its

unchallenged ordinances is the very essence of municipal

government. Under the construct of the ordinance (and

the lease) substantial responsibility for compliance fell

directly on the lessee. The situation is, of course, not a

complete parallel, but as the Supreme Court has recently

said in Jackson v. Metropolitan Edison Company:

We have of course found state action present in

the exercise by private entity of powers tradition-

ally exclusively reserved to the State. 1974, 419

U.S. 345, 353, 95 S.Ct. 449, 454, 42 L.Ed.2d 477,

485 citing, Nixon v. Condon, 286 U.S. 73, 52 S.Ct.

484, 76 L.Ed. 984, 88 A.L.R. 458 (1932) (elec-

tion); Terry v. Adams, 345 U.S. 461, 73 S.Ct.

809, 97 L.Ed. 1152 (1953) (election); Marsh v.

Alabama, 326 U.S. 501, 66 S.Ct. 276, 90 L.Ed. 265

(1946) (company town); Evans v. Newton, 382

U.S. 296, 88 S.Ct. 486, 15 L.Ed.2d 373 (1966)

(municipal park).

We have long ago applied such principles in race civil

rights cases.

Indeed, the State of Florida laid this down in the ini-

tial conditions it imposed, see note 8 supra, which required

that the lease be terminated if operations under it become

“inimical to the general public interest.” The city and

BBYC having expressly covenanted to a policy of non-

App. 32

racial-religious discrimination and the institution of a club-

organization structured to achieve this equality became

equally bound in the eyes of the law either to (i) correct

the asserted deficiencies or (ii) terminate the arrangement.

The fact—now undisputed—is that the city turned both an

advocate and deaf ear to these repeated complaints—now

judicially credited—which makes Baldwin v. Morgan, 5

Cir., 1958, 251 F.2d 780, 788 directly applicable. We said:

State action is indeed required under the Four-

teenth Amendment and 42 U.S.C.A. § 1983. But

those who directly assist the admitted state agency

in carrying out the unlawful action become a part

of it and subject to the sanction of Section 1983.

In holding the club responsible, I go beyond ordinary

principles of agency or landlord-tenant. Rather with the

sweep of § 1983 and the aims of that legislation it rests

upon the necessity of preventing persons from hiding be-

hind private discrimination which is not reachable by the

Constitution when from mutually interacting conduct the

resulting enterprise is infected by significant governmental

action.

Of course a municipality may engage in conduct which

amounts to state action even though under Kenosha there

is practical immunity as a non-person. But those animate

persons who are engaged in significant parts of such ac-

tivity and who reap the benefits of it are amenable under

§ 1983 for appropriate relief.“ The amenability of a pri-

vate party under § 1983 for conduct which is significantly

attributable to government is not based on an imputed

As to “appropriate” relief see Note 6 supra.

App. 33

principle of agency or the like but on the ground that, as

§ 1983 itself says, “Every person” shall be liable to the

injured party. Thus that liability is not confined to some

governmental official, but frequently is imposed against,

for example, operators of retail stores, restaurants, hotels,

buses and the like.“

Of course in the ordinary situation the liability of pri-

vate persons flows from the unconstitutional municipal

ordinance or practice in certain discriminatory actions.

Here, unlike an ordinance which imposes an unconstitu-

tional burden upon someone in the private community, this

ordinance imposes a continuing burden on both the City as

lessor and the BBYC as lessee to carry out the mandate of

non-discrimination. Without suggesting that as a universal

matter failure to enforce constitutes sufficient state action,

we have already decided that failure on the part of munici-

pality to take action where needed constitutes state action.

In Jennings v. Patterson, 5 Cir., 1974, 488 F.2d 436, pri-

vate individuals erected a barricade across a street, which

was publicly owned and the City refused to remove the

barricade. Judge Roney in writing the opinion of the ma-

jority related this nonfeasance concept to § 1983 and his

words are particularly persuasive:

“Tt is abundantly clear that one reason the legis-

lation was passed was to afford a federal right in

17Adickes v. S. H. Kress & Co., 1970, 398 U.S. 144, 90 S.Ct. 1598,

26 L.Ed.2d 142; Goodloe v. Davis, 5 Cir., 1975, 514 F.2d 1274; Cason

v. City of Jacksonville, 5 Cir., 1974, 497 F.2d 949, 950; Jennings v.

Patterson, 5 Cir., 1974, 488 F.2d 436, 438; Hall v. Garson, 5 Cir., 1970,

430 F.2d 430, 442-43; Baldwin v. Morgan, 5 Cir., 1958, 251 F.2d 780,

787; Derrington v. Plummer, 5 Cir., 1956, 240 F.2d 922, cert. denied,

353 U.S. 924, 77 S.Ct. 680, 1 L.Ed.2d 719; Browder v. Gayle,

M.D.Ala., 1956, 142 F.Supp. 707, aff'd, 352 U.S. 903, 77 S.Ct. 145,

1 L.Ed.2d 114.

App. 34

federal courts because, by reason of prejudice,

passion, neglect, intolerance or otherwise, state

laws might not be enforced and the claims of citi-

zens to the enjoyment of rights, privileges, and

immunities guaranteed by the Fourteenth Amend-

ment might be denied by the state agencies”

Monroe v. Pape, 365 U.S. 167, 180, 81 S.Ct. 473,

480, 5 L.Ed.2d 492, 501. Accordingly, we hold that

the failure of the City and its governing officials

to dismantle the fence constitutes state action pro-

scribed by Section 1983. (emphasis supplied).

See also Azar v. Conley, 6 Cir., 1972, 456 F.2d 1382, 1387:

Ingram v. Dunn, N.D.Ga., 1974, 383 F.Supp. 1043, af-

firmed, 514 F.2d 1070; Minshew v. Smith, N.D.Miss., 1974,

380 F.Supp. 918, 922; ef. Civil Rights Cases, supra; Bell

v. Maryland, 1964, 378 U.S. 226, 309-11, 84 S.Ct. 1814,

1859-1860, 12 L.Ed.2d 822, 845-846.

Although the barrier which blocks these parties access

to the Biscayne Bay Yacht Club may be less physically"

evident than in Jennings it is nevertheless there as well as

the racial and religious animus which it represents. And

the City’s failure to remove it clearly constitutes complicity

in the enterprise of sufficient magnitude to satisfy even

the most conservative state action standards.

Likewise, the extension of the lease or the continuation

of the enjoyment of it in the face of now judicially estab-

'8It may be not less, but more. Access to the driveway leading into

the club’s landbased grounds is not what made BBYC a great nautical

organization. For a club which has long-established races such as the

Sir Thomas Lipton Challenge Cup Race, The Miami-Montego Bay Race,

the St. Petersburg-Venice Lauderdale Race, the notion that the club

could be land-locked without mooring facilities would be a disservice

to the memory of the pre § 1983 ambitions of Commodore Munroe.

App. 35

lished discrimination, quite without regard to affirmative

cancellation by the City, made the BBYC a participant in

the discrimination.

Part IV

It is as though the city in its contract had expressly

recited that it leased the property to BBYC, an exclusively

White non-jewish organization, for the exclusive use of its

members and guests. Gilmore v. City of Montgomery, 1974,

417 U.S. 556, 566, 94 S.Ct. 2416, 2422, 41 L.Ed.2d 304,

315-17.

Gilmore clearly proscribes the exclusive use of public

property by racially discriminatory organizations. The pri-

mary consideration should be whether this Court is willing

to condone the State’s participation in, and approval of,

racial discrimination by allowing public property io be

utilized in this enterprise.“

In Gilmore the Supreme Court emphasized that the

city policies permitting exclusive use of city facilities by

segregated schools operated to contravene an existing

school desegregation order, just as the discrimination in

this case violated the clear mandate of the ordinance-lease.

Gilmore, supra 417 U.S. at 568, 94 S.Ct. at 2423, 41 L.Ed.

19Mr. Justice Blackmun writing for the majority explained the

exclusive use concept as follows:

Here, the exclusive use and control of city recreational facil-

ities, however temporary, by private segregated schools was little

different from the city’s agreement with the YMCA to run a

“coordinated” but, in effect, segregated recreational program.

Such use and control carried the brand of “separate but equal”

and, in the circumstances of this case, was properly terminated by

the District Court.

417 US. at 567, 91 S.Ct. at 2423, 41 L.Ed.2d at 316.

App. 36

2d at 316. The Court noted that “the city’s officials were

aware of this [desegregation] order and were responsible

for seeing that no actions on their part would significantly

impede the progress [of desegregation] ....” Id. In Golden

the city’s lease with BBY, and its refusal to recognize

the Club’s restrictive membership, operates to contravene

the city’s own antidiscrimination ordinances. The City of

Miami officials were aware of the policy expressed by the

ordinance and had a duty to take no action, such as leasing

city property—or now more important, the extension of the

lease—that would contravene the requirement that all city

lands be used in a non-discriminatory manner.

Gilmore does not state that a segregated group can

never use public facilities. Rather it emphasizes that such

an organization cannot have exclusive use and control of

city-owned property. This is what the BBYC lease permits

—exclusive use of city property by a racially and relig-

iously restricted group. That this is sufficient to find state

action is indicated by Gilmore in that if “the city or other

governmental entity rations otherwise freely accessible

recreational facilities, the case for state action will nat-

urally be stronger . . . Gilmore, supra 417 U.S. at 574,

94 S.Ct. at 2426, 41 L.Ed.2d at 320.

Part V

Today the Court opens the door to subterfuge because

well within the bounds of this opinion, a governmental

entity may accomplish indirectly what it could never do

directly by leasing public property to a private segregated

organization and then disavowing any direct participation

in the discriminatory membership policies.

App. 37

This sort of subtle method of effectuating racial and

religious discrimination has been specifically rejected by

the Supreme Court in Gilmore and by this Court in Wim-

bish v. Pinellas County, Florida, 5 Cir., 1965, 342 F.2d

804 and Derrington v. Plummer, 5 Cir., 1956, 240 F.2d

922, cert. denied, 353 U.S. 924, 77 S.Ct. 682, 1 L.Ed.2d

719, where we refused to allow public property to be leased

to segregated organizations.

Part VI

The court’s response to its own question why the Dis-

trict Court did not cancel the “offending appendage and

simply enjoin the use of the docks””° was, that it was prob-

ably influenced by the practical result that docks cut loose

would be useless. That answer ignores the whole record.

The docks are an integral part of a yacht club if it is not

one in name only. Because they are indispensable to the

operation of a yacht club worthy of the nautical traditions

of this organization and they do not exist without the

essential governmental lease, the plaintiffs seek not just

to tie up at the docks, but to moor their vessels at the dock

as a part of the yacht club and thereby enjoy all the privi-

leges of membership until such time as the State cuts itself

altogether free from the enterprises.

The Court’s argument that there were other docking

facilities, both public and private on Biscayne Bay, avail-

able to plaintiffs is not an acceptable one in assaying

denial for proscribed reasons. As to use of facilities which

cannot operationally exist without State action, the same

20See 530 pages 21-22, citing Wright v. City of Brighton, 5 Cir.,

1971, 441 F.2d 4147; United States v. State of Mississippi, 5 Cir., 1974,

499 F.2d 425.

App. 38

argument has been made and rejected in the cases of pub-

lic golf courses, swimming pools, public auditoriums and

the enjoyment of segregated seats on a city bus.”!

Part VII

The majority places emphasis on our recent decision

in Greco v. Orange Memorial Hospital Corp., 5 Cir., 1975,

513 F.2d 873 which, of course, also concerned the lease

of public land by a private entity.

In writing the opinion for the Court when this case

was first considered I distinguished Greco on the obvious

ground that it did not involve racial discrimination which

is a realm of law where courts have consistently and readily

found state action. See Golden v. Biscayne Bay Yacht Club,

supra, at 326-29.

But Greco is also distinguishable on its facts for there

the Court stressed that the lease from the city had not in-

cluded any condition relating to the performance or non-

performance of elective abortions.” In contract, both the

21Beal v. Holcombe, 5 Cir., 1951, 193 F.2d 384, cert denied, 1954,

347 U.S. 974, 74 S.Ct. 783, 98 L.Ed. 1114 (golf course); St. Peters-

burg v. Alsup, 1956, 238 F.2d 830, cert. denied, 1957, 353 U.S. 922, 77

S.Ct. 680, 1 L.Ed.2d 719 (swimming pool); Bynum v. Schiro, E.D.La.,

1963, 219 F.Supp. 204, 209, aff'd, 375 U.S. 395, 84 S.Ct. 452, 11

L.Ed.2d 412 (municipal auditorium) ; Browder v. Gayle, supra at 717

(city bus); New Orleans City Park Improvement Association, 5 Cir.,

1958, 252 F.2d 122, 123 (city park facilities).

22The Court stated that:

There is no evidence that in acquiring federal funds or in

leasing the hospital facility the corporation ever accepted a condi-

tion relating to the performance or non-performance of abortions.

Doe v. Bellin Memorial Hospital, 479 F.2d 756, 761 (7th Cir.

1973). The Parking Authority in Burton, on the other hand, was

specifically obligated to operate in a non-discriminatory manner.

App. 39

BBYC lease by way of city ordinances incorporated there-

in, (see note 10 supra) and Burton had specific provisions

barring racial discrimination, and at the very least the

club had a duty to perform its obligations in accordance

with the terms of the lease.

Part VIII

In wrapping this up some additional comments are ap-

propriate. We understand the majority opinion to hold that

the fact that a private club leases some of the property it

uses from a governmental entity is not enough in itself to

imbue the private club’s discriminatory activities with

“state action.” Whatever the validity of that holding as a

legal proposition, we are convinced that the result reached

by the majority is incorrect, because several unique factors

relating to this particular lease were not properly taken

into account in the majority opinion.

The panel opinion, 521 F.2d 344, as does this dissent,

discussed these special considerations which mandate the

conclusion that “much more is involved than simple owner-

ship and lease” 521 F.2d at 352. This was a lease of water-

bottom land abutting very valuable property—we can take

judicial notice that this lease was worth considerably more

than $1.00, and thus that the financial accommodation

here had the same effect as would a fair market value lease

combined with a large subsidy given from the city to the

club. The lease arrangement between the club and the city

was grounded, pursuant to a state requirement, on a con-

dition that the club would be performing a “public pur-

pose,” viz., providing private dock space which would to

some extent relieve the overcrowded public docks. The city

at one point had recognized, through ordinance, that as

App. 40

trustee of a limited and valuable public resource, it had

an obligation to insure that any private clubs given ex-

clusive access to parts of that resource would not practice

invidious discrimination. The club failed to comply with

that ordinance, although the prohibition of invidious dis-

crimination had been made part of the lease, and the city

refused to enforce the ordinance, despite clear notice of the

violation.

This Court need not decide whether any one of these

considerations, standing alone, would be sufficient to sup-

port a finding of state action. Rather, we need only pass

on whether the cumulation of these considerations develops

an image of “significant state involvement.” For us, all

the facts and circumstances lead to only one conclusion—

the cumulation of the various aspects of the city-club rela-

tionship colors the club’s policies of racial and religious

discrimination with state action. The majority has reached

a different result by failing to consider all the relevant

factors, so today’s opinion should not be read to foreclose a

finding of state action in similar circumstances in the fu-

ture. The “no state action” harbor for the Club’s white

non-jewish yachts is constitutionally unsound, and we

would give them no berth.

The District Court should be AFFIRMED.

App. 41

Harold S. GOLDEN and David Fincher,

Plaintiffs-Appellees,

V.

>

BISCAYNE BAY YACHT CLUB etal.,

Defendants-Appellants.

No. 74-1349.

United States Court of Appeals,

Fifth Circuit

Sept. 26, 1975.

Rehearing En Banc Granted

Nov. 19, 1975.

Before BROWN, Chief Judge, and CULEMAN and

CLARK, Circuit Judges.

JOHN R. BROWN, Chief Judge:

Plaintiffs, Black and Jewish applicants for member-

ship in defendant’s private Biscayne Bay Yacht Club

brought this action pursuant to 42 U.S. C. A. 88 1981,' 1983?

i 1981. Equal rights under the law

All persons within the jurisdiction of the United States shall

have the same right in every State and Territory to make and en-

force contracts, to sue, be parties, —— — Sera

2 benefit of all laws and proceedings for the security

property as is enjoyed by n

— to like punishment, pains, penalties, taxes, licenses, and

exactions of every kind, and to no other. R.S. § 1977.

25 1983. Civil action for deprivation of rights

Every person who, under color of any statute, ordinance, reg-

App. 42

and 2000a' alleging the Club discriminated on the basis of

race and religion in their admission policies. The trial

court“ found a pattern of discrimination had existed and

that it was conducted “under color of law“ because the

Club leased bay bottom land from the city of Miami, Flor-

ida regulated by ordinances that expressly prohibited dis-

ulation, custom, or usage, of any State or Territory, subjects, or

causes to be subjected, any citizen of the United States or other

person within the jurisdiction thereof to the deprivation of any

rights, privileges, or immunities secured by the Constitution and

laws, shall be liable to the party injured in an action at law, suit

in equity, or other proper proceeding for redress.

R.S. § 1979.

3SUBCHAPTER II.—PUBLIC ACCOMMODATIONS

§ 2000a. Prohibition against discrimination or segregation in

places of public accommodation—Equal access

(a) All persons shall be entitled to the full and equal en-

joyment of the goods, services, facilities, privileges, advant-

ages, and accommodations of any place of public accomoda-

tion, as defined in this section, without discrimination or

segregation on the ground of race, color, religion, or national

origin.

Support by State Action

(d) Discrimination or segregation by an establishment

is supported by State action within the meaning of this sub-

chapter if such discrimination or segregation (1) is carried

on under color of any law, statute, ordinance, or regulation;

or (2) is carried on under color of any custom or usage re-

quired or enforced by officials of the State or political sub-

division thereof; or (3) is required by action of the State or

political subdivision thereof.

Private establishments

(e) The provisions of this subchapter shall not apply to

a private club or other establishment not in fact open to the

public, except to the extent that the facilities of such estab-

lishment are made available to the customers or patrons of an

establishment within the scope of subsection (b) of this sec-

tion. Pub. L. 88-352, Title II. § 201, July 2, 1964, 78 Stat. 243.

Golden v. Biscayne Bay Yacht Club, S.D. Fla. 1973, 370 F.Supp.

1038.

App. 43

crimination for race, religion or national origin’ upon

which to maintain its dock facilities and, such govern-

mental participation constituted sufficient “state action”

to bring the discriminatory conduct within the Fourteenth

Amendment.“ Accordingly, the trial court ordered the club

to cease the practice of denying persons membership in the

Club solely on account of their race or religious affilia-

tions. We agree.

The History

The Club, was organized in 1887 to provide a meeting

place for yachtsmen in early Miami. In 1932, the Club pur-

chased its present club house located adjacent to Biscayne

Bay. In 1962, the City of Miami asserted ownership to the

bay bottom land abutting the Club’s property and since

that time the Club has leased from the City sufficient bay

bottom land to support its docking facilities at an annual

rental of $1.00.

The City acquired the bay bottom lands from the

Trustees of the Internal Improvement Fund of the State

of Florida under deed terms which re. uired that the lands

be used for public purposes only. In 1969 it obtained a

‘Miami, Fla. Code § 38-9, 1 provides:

The lessee of any property of which the city is the owner shall

not discriminate against or refuse or deny to any person or per-

sons, guests or permittees, the use of the facilities leased from the

city because of race, creed, religion, color or national origin.

(Ord.No. 7668, § 1)

Miami, Fla.Code § 38-9.2, sub. § A. 11 states:

There shall be no requirement that applicants for enrollment

be sponsored by anyone as a condition to such applicant being

processed or accepted for membership. (Ord.No. 7668, § 2;

Ord.No. 7682, §§ 1, 2.)

Miami, Fla.Code § 38-9.3 (Ord.No. 7668, § VI, sub. § 3)

The Fourteenth Amendment of the United States Constitution pro-

vides in pertinent part:

No State shall. . deny to any person within its jurisdiction

the equal protection of the laws.

App. 44

waiver from te trustees for its lease to the Club by

asserting that the docks maintained by the Club helped

relieve the shortage of public dock facilities in the city. The

docks are for the exclusive use of Club members and the

general public is prohibited from tying up there or using

the decking. But without the bay bottom land the Club

could not maintain docking or mooring facilities and ac-

cordingly the City’s lease of this land is essential to the

Club’s metion, considering that a yacht club is not much

of one i: members and authorized guests have no means to

anchor, moor or tie up their craft.

Membership in the Club is by sponsorship’ only. The

by-laws of the Club provide for invitation to membership

by three sponsors (members) consisting of a proposer and

two seconders who file with the Club’s secretary a letter

stating the candidate’s qualifications for membership.

After investigation by the Club a vote by secret ballot is

held by the Board of Governors sitting as the Membership

Committee. At least eight members are needed for a

quorum and if any three members of the committee veto

the candidate, the black ball is run up and no invitation

is issued.“ While the by-laws of the Club do not expressly

prohibit membership by members of the Jewish faith or

Black race there are no known past or present Jewish or

Black members except for one honorary Black member, the

Commodore of the Jamaica Yacht Club.

Both Golden and Fincher expressed interest to Club

officials in obtaining applications for membership but

See note 10, infra, and accompanying text.

See Golden v. Biscayne Bay Yacht Club, City of Miami, supra,

at 1041.

App. 45

were informed that they would have to be sponsored by a

Club member to be eligible for membership. As a result of

the Club’s refusal to accept plaintiffs’ applications they

brought suit for declaratory and injunctive relief assert-

ing that the Club’s admission procedure was discrimina-

tory on the basis of race and religion and accordingly

violated the Fourteenth Amendment and the civil rights

statutes.

From a finding by the trial court in favor of the

plaintiffs the Club appeals asserting that, (i) the plain-

tiffs have no standing to challenge the Club’s admission

policies, (ii) the record fails to support the trial court’s

conclusion that the plaintiffs were deprived of their con-

stitutional rights, (iii) that the record fails to support the

trial court’s conclusion that the Club’s membership prac-

tices were discriminatory on the basis of race or religion,

(iv) whether the Club’s leasing of city owned land con-

stituted acts under color of law sufficient to create juris-

diction within the satrapy of Title 42 U.S. C. A. § 1983.

Standing

[1] Fundamentally, Article III of the United States

Constitution requires that the judicial power of the United

States Courts shall extend only to cases or controversies

arising under the Constitution, laws, or treaties of the

United States. This constitutional requirement has been

interpreted by the Supreme Court to mean that the plain-

tiff must assert that the conduct of the defendant has

caused him injury in fact whether economic or otherwise.

See Association of Data Processing Service Organizations,

Inc. v. Camp, 1970, 397 U.S. 150, 90 S.Ct. 827, 25 L.Ed.2d

184, In the words of Mr. Justice Marshall in Jenkins v.

App. 46

McKeithen, 1969, 395 U.S. 411, 89 S.Ct. 1843, 23 L.Ed.2d

404, „[t] he indispensable requirement is, of course, that

the party seeking relief allege ‘such personal stake in the

outcome of the controversy as to assure that concrete ad-

verseness which sharpens the presentation of issues upon

which the Court so largely depends for illumination of

difficult contitutional questions.’” Id. at 423, 89 S.Ct. at

1849. Citing, Baker v. Carr, 1962, 369 U.S. 186, 82 S.Ct.

691, 7 L.Ed.2d 663; Flast v. Cohen, 1968, 392 U.S. 83,

88 S.Ct. 1942, 20 L.Ed.2d 947; Joint Anti-Fascist Re-

fugee Committee v. McGrath, 1951, 341 U.S. 123, 71 S.Ct.

624, 95 L.Ed. 817. See also Evers v. Dwyer, 1958, 358 U.S.

202, 79 S.Ct. 178, 3 L.Ed.2d 222.

[2,3] In the case at hand the District Court specifi-

cally found that the plaintiffs had a versonal stake in the

outcome of the litigation. The existing membership policies

they attacked as exhibiting a pattern of discrimination

formed the standards upon which the Club refused to

accept plaintiffs’ applications. More specifically, it is un-

questionable that standing may be based upon an interest

created by the Constitution or a statute. See Parker v.

Fleming, 1947, 329 U.S. 531, 67 S.Ct. 463, 91 L.Ed. 479;

Coleman v. Miller, 1939, 307 U.S. 433, 59 S.Ct. 972, 83

L. Ed. 1385. Here is involved a claim of racial and religious

discrimination which seems clearly to fall within the “zone

of interest” of the statutory language of 42 U.S. C. A. 8

1983.° Thus, we reject out of hand the defendant’s con-

tention that the plaintiffs possess insufficient standing to

assail the membership policies of the Club.

When a statutory remedy is asserted by the plaintiff Courts con-

sider not only the case or controversy test but also whether the interest

sought to be protected by the complainant is within the zone of interest

to be protected or regulated by the statute or constitutional guarantee

in question. See Tennessee Electric Power Co. v. T.V.A., 1939, 306

U.S. 118, 59 S.Ct. 366, L.Ed. 543.

App. 47

The Standard

[4] “Two elements must be proved to recover under

§ 1983 (i) a deprivation of a constitutional right by the

defendant, and (ii) that the defendant, acted under ‘color

of law'.“ See Smith v. Young Men's Christian Association

of Montgomery, 5 Cir., 1972, 462 F.2d 634; accord.

Adickes v. S. H. Kress & Co., 1970, 398 U.S. 144, 90 S.Ct.

1598, 26 L.Ed.2d 142. Because we find that these elements

are satisfied and relief is appropriate under § 1983 we

deem it unnecessary to reach the question of whether the

Club’s admission policies also violated § 1981 and Title II

of the Civil Rights Act of 1964, 42 U.S.C.A. § 2000a.

Acts of Discrimination

[5] The trial court found that admission policies of

the Yacht Club over its long history had fostered a subtle

pattern and practice of discrimination evidenced by the

total lack of minority representation, save one honorary

member who was a citizen of a foreign country. See Golden

v. Biscayne Bay Yacht Club, City of Miami, supra, 370

F.Supp. at 1043. Moreover, the Court found that the

sponsorship requirement, although not egregious on its

face, in practicality operates to exclude Blacks and Jews

from Club membership.“ Id., citing Local 53 of Inter-

national Association of Heat and Frost Insulators and

Asbestos Workers v. Vogler, 5 Cir., 1969, 407 F. 2d 1047;

Ross v. Dyer, 5 Cir., 1963, 312 F. 2d 191.

‘In Adams v. Miami Benevolent Association, Inc., 5 Cir., 1972,

454 F.2d 1315, 1318. we found that a five vote veto clause in the con-

stitution of an organization functioned as a Whites only“ clause even

though the constitution contained no express “Whites only” language.

Similarly, in this case the Judge could find the three vote veto feature

of the Club’s membership procedure was an effective Whites only” pro-

vision, not to mention the sponsorship requirement which had the ef-

fect of perpetuating a membership consisting of persons with similar

background, race and religious preferences.

App. 48

Upon such findings of fact the trial court concluded

that the “plaintiffs had not been afforded the same rights

to membership as their white and Christian counterparts”.

See Golden v. Biscayne Bay Yacht Club, City of Miami,

supra, 370 F.Supp. at 1043. These findings of racial and

religious discrimination are supported by the record and

are well above the Plimsoll line of F.R.Civ.P. 52(a). Cook

& Nichol, Inc. v. Plimsoll Club, 5 Cir., 1971, 451 F.2d 505.

“Under Color Of Law”—The Basis Upon Which Constitu-

tional Restrictions Are Applied To Private Conduct

Entwined With Public Activities

[6-8] We recognize at the outset that the Equal

Protection Clause of the Fourteenth Amendment does not

prohibit the “[i]ndividual invasion of individual rights.”

Civil Rights Cases, 1883, 109 U.S. 3, 11, 3 S.Ct. 18, 21, 27

L.Ed. 835, 839. However, it does prohibit state action of

every kind that operates to deny any citizen the equal

protection of the laws. Id. When private enterprises be-

come sufficiently entwined with Government policy or

receive substantial aid and support from governmental

entities they are said to be acting “under color of law”

and consequently are subject to the Constitutional limita-

tions which prohibit discriminatory conduct by the State.

See Gilmore v. City of Montgomery, 1974, 417 U.S. 556, 565,

94 S.Ct. 2416, 41 L.Ed.2d 304; Evans v. Newton, 1966, 382

U.S. 296, 299, 86 S.Ct. 486, 15 L.Ed.2d 373.

This finding is not only sufficient to supply state

action, it is also well armored against attack as clearly

erroneous. Indeed, it draws additional validity from the

type of actionable wrong here involved.

App. 49

Despite its ivy overlay of law, the “state action”

which supplies “color of law” ultimately turns upon re-

solving questions of fact, a resolution to be reviewed here

under the same strictures of Fed.R.Civ.P. 52(a) applied

to the trial court’s finding of discrimination.

„. . . the Court has never attempted to formu-

late ‘an infallible test for determining whether

the State . . has become significantly involved

in private discriminations’ so as to constitute

state action. Reitman v. Mulkey, 387 U.S., at 378,

87 S. Ct., at 1632. Only by sifting facts and

weighing circumstances” [on a case-by-case

basis] can the “nonobvious involvement of the

State in private conduct be attributed its true

significance.“ Id., quoting Burton, 365 U.S., at

722, 81 S.Ct., at 860. This is the task for the Dis-

trict Court... .”

Gilmore v. City of Montgomery, supra, 417 U.S. at 574,

94 S.Ct. at 2427.

Looking to the trial court’s findings as the trier of

the fact we find them amply supported by the evidence in-

cluding uncontradicted circumstances and well grounded

in the articulation of factual emphasis and awareness of

significant legal precedents."

With respect to racial discrimination the Supreme

Court has been unwilling to condone any significant degree

The trier of fact found:

the City of Miami leases publicly owned land to the defendant

Club so that the Club may operate as a yacht club and provide

dockage for its members. 3 the court is not faced with peri-

odic” or incidental use of municipally owned recreational facilities

as in the recent case of Gilmore v. City of Montgomery, 473 F.2d

832 (5th Cir. 1973). Rather, the lease under issue is on a perma-

nent basis and, unlike the facilities in Gilmore, cannot be used by

anyone other than Club members and their guests.

App. 50

of state action in discriminatory conduct by private

parties. See Burton v. Wilmington Parking Authority,

1961, 365 U.S. 715, 722, 81 S.Ct. 856, 6 L.Ed.2d 45; accord,

Reitman v. Mulkey, 1962, 387 U.S. 369, 87 S.Ct. 1627, 18

L.Ed.2d 830. We have but recently taken cognizance of

this in Greco v. Orange Memorial Hospital Corp., 5 Cir.,

1975, 513 F.2d 873 in which the Court found that there

existed no state action in a non-racial discrimination case.

There the plaintiff, a physician, had been prohibited from

performng elective abortions in a hospital operated by a

private charitable corporation but leased from the county,

received tax exemptions, and received some federal fund-

Neither is the court faced with the minimal degree of state

involvement present in the recent Supreme Court’s decision in this

area, Moose Lodge No. 197 v. Irvis, 407 U.S. 163, 92 S.Ct. 1965,

32 L.Ed.2d 627 (1973). In Moose Lodge, the issuance of a liquor

license to the discriminating Club was the only nexus with the

state. No special benefit by reason of the liquor license was af-

forded the Club by the state since, like other state furnished serv-

ices such as police and fire protection, water and electricity the

benefits of a liquor license were potentially available to all state

citizens. Here, however, the defendant Club enjoys a select priv-

ilege not available to each citizen but one coveted by many citizens

in the South Florida area. More critically, the privilege is essential

to the Club’s operation.

The facts of the instant case also differ from the recent de-

cision in Solomon v. The Miami Woman’s Club [359 F.Supp. 41

(S.D. Fla. 1973)], in which this court held that the particular

state lease to a state headquarters did not contain sufficient state

involvement to clothe the patently discriminatory membership

policies of the local private club with the color of state law. In Sol-

omon the court was faced with an arms-length lease entered into by

a municipality far from the location of the local club. Here, the

court is confronted with a lease to defendant of property vital to the

operation of a vacht club. Thus, on the facts of this case, the Court

holds that the “symbiotic relationship” between the state and the

Club exists, thereby making any discriminatory action by the Club

a violation of the Fourteenth Amendment. Burton v. Wilmington

Parking Authority [365 U.S. 715, 81 S.Ct. 856, 6 L.Ed.2d 45

(1961) J. By virtue of the lease, the acts of the Club become those

of the state and any deprivation of an individual’s rights by the

Club become a deprivation by the state.

App. 51

ing. In finding no state action the Court emphasized the

distinction’? between the degree of state action necessary

to impose constitutional restraints in cases concerning

racial discrimination" and the higher degree of state in-

12The Court stated that:

The most obvious distinguishing factor is that Orange Memor-

ial Hospital is not accused of racial discrimination. The doctrine of

state action developed primarily in the area of racial discrimina-

tion. See State-Action Theories of 657 and footnote 10, supra. The

concepts developed in this area, explicitly supported by constitu-

tional and legislative mandates, were necessarily broadly drawn

in order to implement Congressional intent in circumstances of

positive and frequent state obfuscation and delay. The potentially

explosive impact of the application of state action concepts de-

signed to ferret out racially discriminatory policies in areas un-

affected by racial considerations has led courts to define more

precisely the applicability of the state action doctrine. See James

v. Pinnix, 495 F.2d 206, 209 (Sth Cir. 1974) and footnotes 10,

supra. See also Brantley v. Union Bk. & Trust Co., 498 F.2d 365

(5th Cir. 1974); Calderon v. United Furniture Co., 505 F.2d 950

(Sth Cir. 1974); Derrington v. Plummer, 240 F.2d 922 (5th Cir.

1956); Blouin v. Loyola, 506 F.2d 20 (Sth Cir. 1975); Grafton

v. Brooklyn Law School, 478 (F.2d 1137, 1142 (2nd Cir. 1973).

Compare, Simkins v. Moses H. Cone Mem. Hosp., 323 F.2d 959

(4th Cir. 1963), cert. denied, 376 U.S. 938, 84 S.Ct. 793, 11 L.Ed.

2d 659 (1964).

Greco v. Orange Memorial Hospital Corp., supra, at 879.

13See e. g., Powe v. Miles, 2 Cir., 1968, 407 F.2d 73, 82 where Judge

Friendly refused to label a private school a state actor for purposes of

the Due Process Clause but indicated that charges of racial discrimina-

tion would subject the school to constitutional restraints. Likewise, in

Edwards v. Habid, 1968, 130 U.S. App.D.C. 126, 397 F.2d 687, the

Court recognized that arguably private conduct might constitute state

action under the Fourteenth Amendment but not for purposes of the

First Amendment guarantees of freedom of speech.

Commentators have also ized this distinction. See Note, State

Action: Theories For Applying Constitutional Restrictions To Private

Activity, 74 Colum.L.Rev. 656, 657 (1974); Comment, State Action

and The Burger Court, 60 Va.L.Rev. 840 (1974). For more general

discussions of these concepts see Lewis, The Meaning of State Action

60 Colum.L.Rev. 1083, 1093 (1960); Karst & Horowitz, Reitman v.

Mulkey; A Telophase of Substantive Equal Protection, 1967, Sup. Ct.

Rev. 39, 55-58 (1967); Williams, The Twilight of State Action, 41

Texas L.Rev. 347, 378 (1963).

App. 52

volvement which is necessary for private conduct to be

subjected to Fourteenth Amendment sanctions when other

types of constitutional violations have occurred.'* The

Courts’ willingness to find state action more readily in

racial discrimination cases is not hard to explain. After

all, such discrimination was the very condition that pre-

cipitated the enactment of the Fourteenth Amendment."

In cases involving racial discriminaticn courts have

found state action when the nexus between the state and

the private activity is far more attenuated than in Greco."

For example in Norwood v. Harrison, supra, the Su-

preme Court found state action when the Government

merely provided free textbooks to students in a private

segregated school and prohibited even this slight degree

of state assistance unless the schools demonstrated that

racial discrimination did not exist.“

Lack of state action has been more readily determined by the

Courts in areas not involving racial discrimination. See, e.g. Jackson v.

Metropolitan Edison Co., 1974, 419 U.S. 345, 95 S.Ct. 449, 42 L.Ed.2d

477 (no state action found to exist in a suit by a customer of a utility

company who asserted the company unconstitutionally terminated his

service); Lloyd Corp. v. Tanner, 1972, 407 U.S. 551, 92 S.Ct. 2219,

33 L.Ed.2d 131 (freedom of speech); Male v. Crossroads Associates,

2 Cir., 1972, 469 F.2d 616; McQueen v. Drucker, 1 Cir., 1971, 438

F.2d 781 (non-racial discrimination cases). See also Burke and Reber,

State Action, Congressional Power and Creditors’ Rights: An Essay On

The Fourteenth Amendment, 47 S.Cal.L.Rev. 1 (1973).

See, e. g., Ex Parte Virginia, 1880, 100 U.S. 339, 344-45, 25 L.Ed.

676; Slaughter-House Cases, 1873, 83 U.S. (16 Wall.) 36, 71, 21 L.Ed.

394. See generally Note, State Action: Theories For Applying Consti-

tutional Restrictions To Private Activity, supra, at 657-58; Comment,

State Action And The Burger Court, supra, at 846.

See e.g., Pitts v. Department of Revenue, E.D.Wis., 1971, 333

F.Supp. 662, where, in a racial discrimination case the Court found

state action in merely granting a tax exemption.

Compare Board of Education v. Allen, 1968, 392 U.S. 236, 88

S.Ct. 1923, 20 L.Ed.2d 1060, where the Coyrt held that the loaning of

t.xtbooks to private school children did not violate the Establishment

(Jause of the First Amendment.

App. 53

[9, 10] We believe, in this context,“ religious dis-

erimination against the Jewish applicant carries the same

stigma of inferiority and badge of opprobrium that is

characteristic of racial diserimination.“ Accordingly, we

apply the well developed standards utilized in the racial

discriminaton setting to both litigants, for the gravity of

harm is exactly the same as to both plaintiffs and there

exists no rational basis for distinguishing between them

by allowing relief as to one while denying it to the other.

The Facts Fit

We do not deal here with a “traditional state monop-

oly” (such as electricity, water, or fire and police protec-

tion) or any “generalized governmental service.” See,

Gilmore v. City of Montgomery, supra. The city’s involve-

ment is both specialized and unique.

[11] It is apparent from the relationship between

the City of Miami and the Club that without the City’s

lease of the bed of the bay the Club could not exist. The

very nature of the Club required that there exist dock and

mooring facilities for the vessels of its members. No show-

ing was made that the City was compelled to grant the

lease. Indeed, the city relied on the Club’s operation of

dock facilities on the leasehold to supply the degree of

“public use” which the state’s grant to the city required.

So much more is involved than simple ownership and lease.

The infringement upon religious freedom in this case is invidious

religious discrimination which is violative of the Equal Protection

Clause of the Fourteenth Amendment, as well as the establishment clause

and free exercise clause of the First Amendment.

19See O'Malley v. Brierley, 3 Cir., 1973, 477 F.2d 785, 795-96; cf.,

ments in the LawW— Equal Protection, 82 Harv.L.Rev. 1065,

1127 (1969).

App. 54

The effectuation of the lease required the mutual coopera-

tion of the city and the Club. Aside from the fact that

the lease was essential to the Club’s function, and the

Club’s function was essential to this “public use” validity

of the lease, the City provided substantial financial aid

to the Club by making the bay bottom land available for

the token rental of $1.00 per year.

So too this Court has held that the leasing of govern-

ment owned property to private entities which discrimi-

nate on the basis of race, is a sufficient nexus between

private and public conduct to establish “state action”.”!

See Wimdish v. Pinellas County, Florida, 5 Cir., 1965, 342

2°On numerous occasions the Supreme Court has expressed its un-

willingness to sanction government monetary aid to private entities

which discriminate on the basis of race. See, e.g., Cooper v. Aaron,

1958, 358 U.S. 1, 19. 78 S.Ct. 1401, 1410, 3 L.Ed.2d 5 where the Court

stated that sI tate support of segregated schools through any arrange-

ment, management, funds, or property cannot be squared with the

| Fourteenth} Amendment’s command that no State shall deny . . . equal

protection of the laws.” See also Norwood v. Harrison, supra, (state

textbook loan to private schools with discriminatory admissions policies

prohibited) ; accord, Coit v. Green, 1971, 404 U.S. 997, 92 S.Ct. 564. 30

L.£d.2d 550; Griffin v. County School Board of Prince Edward County,

1964, 377 U.S. 218, 84 S.Ct. 1226, 12 L.Ed.2d 256; Burton v. Wilming:-

ton Parking Authority, supra. See also, note 21, infra and accompanying

text.

21Similarly, our Court has refused to condone the sale of public

property to private all-white acadamies which discriminate racially.

See Wright v. Baker County Board of Education, 5 Cir., 1974, 501 F.2d

131 (Court rescinded the sale by the School Board of an elementary

school to white parents for the establishment of a segregated school) ;

United States v. S. de of Mississippi, 5 Cir., 1974, 499 F.2d 425 (en

banc) (sublease of public school facility to private segregated school set

aside]; McNeal v. Tate County School District, 5 Cir., 1971, 460 F.2d

568 (Court enjoined discriminatory use of old dilapidated school fa-

cility sold to all-while school); Wright v. Brighton, 5 Cir., 1971, 441

F.2d 447, cert. denied, 404 U.S. 915, 92 S.Ct. 228, 30 L.Ed.2d 190

(Court enjoined sale or lease of public junior high school to segregated

private school).

App. 55

F.2d 804. This position was emphatically endorsed by

Justice White concurring in Gilmore.”

The very same activity—exclusive use of public prop-

erty by private, racially discriminatory entities—which is

occurring here was condemned by the Supreme Court in

Gilmore. More er, this Court’s recent decision in Goodloe

v. Davis, 5 Cir., 514 F.2d 1274 (1975) established that even

nonexclusive use by a private segregated summer baseball

league along with some financial support from the city,

was a sufficient nexus between Government and private

actions to form the basis of a finding of “state action”,

where the effect was to interfere with the District Court’s

desegregation order.

22Justice White stated that:

It may be useful also to emphasize that there is very plainly

state action of some sort involved in the leasing, rental, or extend-

ing the use of scarce city-owned recreation facilities to private

X. or other private groups The facilities belong to the city,

an arm of the State; the decision to lease or otherwise permit the

use of the facilities is deliberately made by the city; and it is fair

to assume that those who enter into these transactions on behalf of

the city know the nature of the use and the character of the group

to whom use is being extended. For Fourteenth Amendment pur-

poses, the question is not whether there is state action, but whether

the conceded action by the city, and hence by the State, is such

that the State must be deemed to have denied the equal protection

of the laws. In other words, by permitting a gated school or

group to use city-owned facilities, has the State furnished such aid

to the group’s ted policies or become so involved in them

then tho State teal exay feisty bo enld to hhove Geaied equal geuteo-

tion? Under Burton v. Wilmington Parking Authority, 365 U.S.

715 [81 S.Ct. 856, 6 L.Ed.2d 45 (1961), it is y clear that

to violate the Equal Protection Clause the State itself need not

make, advise, or authorize the private decision to d scriminate that

i State in the practice of segregation or would appear to

2429.

App. 56

Moose Lodge No. 107 v. Irvis, 1972, 407 U.S. 163, 92

S.Ct. 1965, 32 L.Ed.2d 627, does not stand in the way.”

In Moose Lodge petitioners contended that the local Moose

Lodge discriminated on the basis of race and that such

private conduct was under color of state law because the

state issued the lodge a liquor license. However, the Court

held that this licensing alone was an insufficient nexus

to establish “state action”.

In contrast to Moose Lodge the City of Miami-Bis-

cayne Bay Yacht Club is more akin to the lessor-lessee

relationship found to constitute tate action by the

Supreme Court in Burton v. Wilmington Parking Author-

ity, supra. Indeed, the city fostered the Club’s continued

existence and prosperity by providing a lease essential

to the Club’s operation and by charging a token fee for

the privilege of excluding members of the public from

the beneficial use of public property. Surely, without the

city’s participation the Club could not have existed as a

yacht club. It eould, of course, become a yacht club in

name, landlocked and separated from mooring facilities.

But it could not exist as one in fact. Accordingly the city,

as the arm of the state, was significantly involved in the

private discriminatory activity.?“ Correspondingly, the

Yacht Club served the city by maintaining dockage at its

While some commentators read Moose Lodge to indicate some

reluctance by the Supreme Court to find “state action” in racially dis-

criminatory private club activity, see, Note, State Action: Theories For

Applying Constitutional Restrictions To Private Activity, supra, at 688-

89; Comment, State Action and The Burger Court, supra, at 849-50.

Gilmore indicates that the Court remains unwilling to condone any

significant involvemet by governmental entities in racially discrimina-

tory activity.

The Supreme Court in Gilmore v. City of Montgomery, supra, at

572-74, 94 S.Ct. 2416, distinguished Moose Lodge No. 107 v. Irvis,

supra, in a similar way.

App. 57

private expense which relieved the pressures on the city’s

crowded dock facilities,

The Judicial Tightrope—Equal Protection versus Freedom

of Association

[12,13] We are cognizant that Courts should mini-

mize the extent to which they infringe upon the individ-

ual’s First Amendment right to freedom of association.

Mr. Justice Douglas, dissenting in Moose Lodge, expressed

this well in saying that “[t]he associational rights which

our system honors permit all white, all black, all brown,

and all yellow clubs to be formed. They also permit all

Catholic, all Jewish, or all agnostic clubs to be established.”

407 U.S. at 179-80, 92 S.Ct. at 1974. Nevertheless, that priv-

ate exercise of freedom of association must function with-

out significant state support and involvement. See Gilmore

v. City of Montgomery, supra, 417 U.S. at 575, 94 S. Ct. at

2427. “Invidious discrimination takes its own toll on the

freedom to associate, and it is not subject to affirmative

constitutional protection when it involves state action”. Id.

See also Norwood v. Harrison, supra, 413 U.S. at p. 470,

93 S.Ct. 2804.

Affirmed.

COLEMAN, Circuit Judge (dissenting).

Even the half-alert will quickly grasp what this de-

cision means. So far as I know, or can find out, this is the

first time in the history of American jurisprudence that

a federal court has assumed jurisdiction over the member-

ship policies of a genuinely private club. Since the City

of Miami has absolutely nothing to do with the support,

App. 58

the internal operation, or the membership policies of this

private yacht club and since the club performs no public

function whatever, this decision means that hereafter in

the Fifth Circuit no private club, private individual or

collection of private individuals may lease public property

for private use and be able thereafter to remain private.

If there is a lease there is significant state involvement.

The far reaching consequences of this unprecedented ac-

tion will be discussed in a moment.

Since I remain entirely unconvinced that the Con-

stitution imposes such a restrictive covenant upon purely

private activities, and since I am more than convinced

that the majority opinion conflicts with a prior decision

of this Court rendered less than ninety days ago (Greco

v. Orange Memorial Hospital), I am compelled, however

regretfully, to dissent.

All we have in this case is that the City of Miami

leased the use of the waterbottoms to a lessee which, be-

yond dispute, has been a private club for 88 years. As

already pointed out, the City exercises no control over

the club, it does not participate in its operations in any

form, it has nothing to do with club membership policies.

The club performs no function ordinarily attributable to

the public domain. The lease is the sole nexus between the

club and the city.

The majority opinion attaches much significance to

the fact that without the lease there would be no yacht

club. It is equally true, however, that if the Moose Lodge

had been without a state liquor license it could not have

sold drinks to its members and their guests, Moose Lodge

No. 107 v. Irvis, 1972, 407 U.S. 168, 92 S.Ct. 1965, 32

App. 59

L.Ed.2d 627. The Supreme Court held that the issuance of

the liquor license did not supply the necessary state action.

The significant point was that the state license required

the Lodge to abide by its racially discriminatory constitu-

tion and by-Jaws. That was state action, but there is noth-

ing of that kind in this case.

I think the true rule for situations of this kind was

recently enunciated by the Second Circuit in New York

Jaycees, Inc. v. United States Jaycees, 512 F.2d 856 (1975),

a case which involved grants of federal funds to an orga-

nization which restricted its membership:

Plaintiff concedes, as it must, that private ac-

tion is immune from the restrictions of the Fifth

and Fourteenth Amendments. See, e. g., Shelley

v. Kraemer, 334 U.S. 1, 13, 68 S.Ct. 836, 92 L.Ed.

1161 (1948); The Civil Rights Cases, 109 U.S.

3, 3 S.Ct. 18, 27 L.Ed. 835 (1883). However, plain-

tiff claims that National’s receipt of federal

funds and tax exemptions, as well as its perform-

ance of civic functions, constitutes state action

sufficient to subject it to scrutiny under the con-

stitutional standard. We disagree.

The mere existence of government ties to a

private organization is not sufficient to support

a finding of state action. Moose Lodge No. 107

v. Irvis, 407 U.S. 163, 92 S.Ct. 1965, 32 L.Ed.2d 627

(1972) ; Powe v. Miles, 407 F.2d 73 (2d Cir. 1968).

As this court stated in Powe, “[t]he state must

be involved not simply with some activity of the

institution alleged to have inflicted injury upon

a plaintiff but with the activity that caused the

App. 60

injury.” 407 F.2d at 81. The Supreme Court has

recently reaffirmed the principle that the deter-

mination of state action must be based on a

particularized inquiry focusing on whether there

is “a sufficiently close nexus between the State

and the challenged action of the regulated entity

so that the action of the latter may be fairly

treated as that of the State itself.” Jackson v.

Metropolitan Edison Company, 419 U.S. 345, 351,

95 S.Ct. 449, 453, 42 L.Ed.2d 477 (1974). In this

case the requisite connection between govern-

ment and the offending activity has not been

shown, Plaintiff does not charge discrimination

in the operation of federally funded Jaycee pro-

grams; indeed such a claim could not be sup-

ported since not only do women participate both

in the selection of local recipients for funding

and in the implementation of programs, but also

the benefits of all federally funded Jaycee pro-

grams are distributed without regard to sex or

other impermissbly discriminatory criteria. Plain-

tiff’s constitutional challenge is addressed solely

to the internal membership, policies of the Jay-

cees; yet plaintiff has made no showing that the

government is substantially, or even minimally,

involved in the adoption or enforcement of these

policies.

App. 61

but the building from the county. Neither the state nor

the county had anything to do with its actual operation.

The hospital refused to permit elective abortions. This

Court held that neither federal financial assistance nor

the lease of the building and grounds supplied the neces-

sary nexus for a finding of state involvement. It was

declared that the federal courts had no jurisdiction.

A hospital to which the general public has access is

a far cry from a private club, which owns its facilities

and performs no public function. But the present major-

ity opinion says that state action is not in what the state

does but is to be determined by who it does it to, that

is, there is one law for a racial or religious complaint and

yet another law for the denial of an abortion which the

state is constitutionally forbidden to deny. I simply can-

not grasp the logic for this kind of judicial picking and

choosing.

To pursue the factual similarities, and dissimilarities,

between Greco and the instant case, the following com-

parison is, I think, of considerable significance:

The Yacht Club Case

I

The Club owns the building and the land upon

I respectfully submit that the majority in this case

signally fails in its efforts to distinguish Greco v. Orange

Memorial Hospital, 5 Cir., 1975, 513 F.2d 873.

In Greco the defendant was a private hospital,

patronized by the public, which leased not only the land

which it is situated and has since 1982.

II

The Club was built and operated with private

funds and iz a private organization.

App. 62

III

Years subsequent to the construction of docks

into and over Biscayne Bay by the Club, the City

laid claim to the bay bottom land in 1962 over

which such docks extended and subsequent there-

to the Club has leased such bay bottom land

beneath such docks for $1.00 per year.

Iv

Under lease the Club assumed no obligation to

the City. j

V

The- City has never directly or indirectly parti-

cipated in the disputed alleged club policy.

The Greco Case

I

The County owns the building and the land upon

which the hospital is situated and has since its

inception.

II

The hospital was constructed with $1,762,000

county funds and $1,250,000 Hill-Burton funds

and is open to the public.

App. 68

III

The hospital leases the land and the building

from the county for $1.00 per year and has since

its inception.

IV

Under lease, the hospital agreed to provide cer-

tain services and operate in a prescribed manner.

V

The County neither directly nor indirectly parti-

cipated in the disputed hospital policy.

From this comparison it can readily be seen that the

relationship existing between the County and Orange Me-

morial Hospital was indeed far closer, far more significant,

of longer standing and far more controlling than the rela-

tionship between the yacht club and the City of Miami.

Despite such substantial involvement and interrelation-

ship, the Greco opinion determined that the necessary

“symbiotic relationship” of state action was lacking and

the necessary nexus between the state’s involvement and

the conduct or policy complained of was absent.

The inescapable end result of the majority opinion is

that a private club which leases any part of its premises

from a public owner thereby loses its private status and

its membership policies will be grist for the courts. As if

we did not already have more to do than we can possibly

perform, judges now become ex-officio managers of the

membership policies of all such private clubs. One wonders

App. 64

what is to become of the heretofore loudly trumpeted con-

stitutionally guaranteed rights of privacy and freedom of

association.

I now take a look at other practical effects of this de-

cision. All around the Gulf of Mexico, the waterbottoms are

publicly owned. They are trust property and cannot be

sold. They can only be leased for a term of years. Under

this decision we say farewell to private yacht clubs, pri-

vate hunting clubs, or any other private club operating on

such property and leased exclusively to a named private

lessee.

But the matter does not stop there. In Mississippi,

for example, there are hundreds of thousands of acres of

Sixteenth Section School land (Northwest Ordinance of

1787). The State cannot sell the land. It can only lease it

for a term of years. It is used for private homes, for farm-

ing, and for numerous other private purposes involving no

public function. Before today it had never occurred to me

that because of the leases the many private activities and

occupations pursued on these lands involve significant state

action.

I would hold that no significant state action is involved

in this private yacht club case. I respectfully dissent.

ON PETITION FOR REHEARING

AND PETITION FOR REHEARING

EN BANC

Before BROWN, Chief Judge, and WISDOM, GEWIN,

BELL, THORNBERRY, COLEMAN, GOLDBERG, AINS-

WORTH, GODBOLD, DYER, MORGAN, CLARK,

RONEY and GEE. Circuit Judges.

App. 65

BY THE COURT:

A member of the Court in active service having re-

quested a poll on the application for rehearing en banc

and a majority of the judges in active service having voted

in favor of granting a rehearing en banc,

It is ordered that the cause shall be reheard by the

Court en banc with oral argument on a date hereafter to

be fixed. The Clerk will specify a briefing schedule for the

filing of supplemental briefs.

HAROLD S. GOLDEN and DAVID FINCHER,

Plaintiffs,

v.

BISCAYNE BAY YACHT CLUB, CITY OF MIAMI,

a political subdivision of the State of Florida, et al.,

Defendants.

No. 72-819-Civ-NCR.

United States District Court,

S. D. Florida,

Miami Division.

Dec. 31, 1973.

ROETTGER, District Judge.

Plaintif, , Harold S. Golden and David Fincher, a

Jew and a Black respectively, brought suit against defend-

ant Biscayne Bay Yacht Club challenging the admission

policies of the Club pursuant to Title 42 U.S.C. sections

1981, 1983 and 2000a. While originally filed as a class

action, the class action allegations were stricken by the

App. 66

court for failure to meet the requisites of Rule 23 of the

Federal Rules of Civil Procedure.

The City of Miami, its mayor and commissioners, have

also been named as defendants by virtue of a city ordinance

prohibiting discrimination by lessees of city-owned prop-

erty.

In addition to evidence received at the trial, the court

viewed the Yacht Club premises with counsel for the parties

and makes the following findings of fact and reaches the

following conclusions of law:

FINDINGS OF FACT

Defendant Biscayne Bay Yacht Club was organized in

1887 to provide a meeting place for yachtsmen in early

Miami.' in 1932, the Club purchased its present clubhouse

located at 2540 South Bayshore Drive, Coconut Grove,

which is adjacent to Biscayne Bay. In 1962, by virtue of

a 1949 deed from The Trustees of the Internal Improve-

ment Fund of the State of Florida, the City of Miami as-

serted ownership to the bay bottom land abutting the Club’s

property and, since that time, the Club has leased this bay

bottom land from the City at an annual rental of $1.00.?

The Club had utilized the bay bottom land previously by

docks extending from the bulkhead line and after 1969

At its inception, the Biscayne Bay Yacht Club was the southern-

most yacht club in the United States. The Club’s flag signifies this

historical fact by bearing the emblem of a large N interlaced with the

figures 25 signifying 25 degree north latitude.

For an interesting account of the early days of the Club, see H.

Muir. Miami, U.S.A. (2d ed. 1963)

2Neither side has raised the issue of whether riparian rights were

vested in the Club prior to 1962.

App. 67

extended the piers. The docks provide for the mooring of

boa for members but the general public is prohibited

from tying up there. This Club is not like a number of

yacht clubs whose docks appear to be a mere appendage to

the club’s social activities and clubhouse. Quite to the con-

trary, this bay bottom land is essential] to the Club’s func-

tioning as a yacht club. Except for the existence of the

lease, the City of Miami has never participated i in or been

involved in the operation of the Club.

In 1969 the City of Miami petitioned the Trustees of

the Internal Improvement Fund of the State of Florida for

a waiver of use restrictions’ limiting the use of the land

“solely for public purposes.” In their waiver of deed re-

strictions, the Trustees allowed construction of the piers

by the Club to “help relieve the accute (sic) shortage of

public dock facilities existing in the City of Miami.” (Em-

phasis that of court).

The City of Miami has enacted certain laws dealing

with the rental of city-owned property. One section of the

Miami City Code prohibits any lessee of city-owned prop-

erty from discriminating against persons on the basis of

race, religion, color or national origin.“ Another provides

that where the lessee is a club, there shall be no requirement

The restriction provides that the land not be used for private

purposes “as distinguished from any public or municipal use or

purpose.”

Miami. Fla. Code § 38-9.1 provides:

The lessee of any property of which the city is the owner shall

not discriminate against - tap exe of the techies eeoed trom the

App. 68

that applicants be sponsored as a condition for club mem-

bership,’ These provisions are incorporated into every lease

between the City and its lessees, including the lease under

consideration.

Membership in the Biscayne Bay Yacht Club is by

sponsorship only. The By-Laws of the Club provide for

invitation to membership by three sponsors consisting of

a proposer and two seconders who file with the Club’s sec-

retary letters stating the candidate’s qualifications for

membership. These letters are accompanied by the can-

didate’s application form which is prepared by one of the

sponsors. The Secretary sends out notices to all members of

the proposal for membership and any member wishing to

do so may write a letter or personally appear before the

membership committee to express his views regarding the

candidate. All such letters are subsequently destroyed.

After “due investigation” required by the Club’s By-

Laws, a vote by secret ballot is held by the Board of Gov-

ernors sitting as the membership committee. At least eight

members are needed for a quorum. If any three members

of the committee veto the candidate, no invitation is issued.

The Club meets the test of being a private club and it cer-

tainly was not formed as a subterfuge to evade the civil

rights laws. Stout v. Y. M. C. A. of Bessemer, Ala., 404

F.2d 687 (5th Cir. 1968); Nesmith v. Y. M. C. A. of Ra-

Miami, Fla. Code § 38-9.2, sub. § A. II states:

There shall be no requirement that applicants for enrollment

be sponsored by anyone as a condition to such applicant being

processed or accepted for membership. (Ord. No. 7668, § 2; Ord.

No 7682, §§ 1, 2.)

.lowever, no evidence was brought before the Court indicating

the City knew the Club’s membership policy was one of sponsor-

ship only and which would have served as a primary reason for

the Court awarding relief against the City.

Miami, Fla. Cod § 38-9.3 (Ord. No. 7668, f VI, sub. 3)

App. 69

leigh, N. C., 397 F.2d 96, 102 (4th Cir. 1968); Wright v.

Cork Club, 315 F.Supp. 1143, 1153 (S.D. Tex. 1970).

Since 1962, the Club has set a maximum membership

of 250. The By-Laws neither expressly prohibit the res-

ence or use of the facilities by guests of members nor do

they expressly forbid membership by members of the Jew-

ish faith or Black race. No known present or past members

of the Club have been either Jewish or Black with the ex-

ception of one honorary Black member, the commodore of

the Jamaica Yacht Club. The Club vigorously asserts it

does not, and has not, engaged in discriminatory practices.

On February 18, 1969, plaintiff Golden sent a letter

to the then commodore of the Biscayne Bay Yacht Club

requesting an application for membership. A response was

sent to plaintiff six days later informing him that mem-

bership was by sponsorship only. On January 14, 1972,

plaintiff Fincher expressed his interest in joining the Club

but was likewise refused. No proposal for membership pur-

suant to the By-Law provisions was ever submitted on

behalf of either plaintiff.

As a result, plaintiffs brought suit for declaratory and

injunctive relief, specifically requesting the court to declare

that defendant Club has violated the Fourteenth Amend-

ment to the United States Constitution and that it be en-

joined from further barring of members on account of race

or religion. The Amended Complaint also requested the

court to enjoin the City of Miami from leasing its land to

the Club until the Club ceased its discriminatory member-

ship policies.

App. 70

CONCLUSIONS OF LAW

Jurisdiction:

The court has jurisdiction of this case under Title 28

U.S.C. sections 2201 and 2202 through the provisions of

Title 28 and section 1343(3) whith gives the court juris-

dictions over violations of Title 42 U.S.C. § 1983 where the

violation occurs under color of state law or authority.

Standing:

[1] Defendant Club argues that plaintiffs cannot

contest the membership policies of the Club since, never

having been proposed for membership, they have suffered

no injury. Both plaintiffs, upon expressing an interest in

joining the Club, were told that there was nothing either

could do without recommendation and this served as a

sufficient rejection to give them the standing o challenge

the membership policies of the defendant Club. See, e. g.,

Solomon v. Miami Woman’s Club et al., 359 F.Supp. 41

(S. D. Fla. 1973).

Color of Law:

[2,3] While the parties have stipulated that defend-

ant is a private club, the fact that a club is private does

not always mean that it is exempted from the operation of

the Civil Rights Act. Title 42 U.S.C. § 2000a; Smith v.

Y.M.C.A. of Montgomery, Inc., 462 F.2d 634 (5th Cir.

1972). Private conduct abridging individual rights does

fall within the prohibitions of the Fourteenth Amendment

when the state to some significant extent has been found

to have become involved in it. Reitman v. Mulkey, 387

U.S. 369, 87 S.Ct. 1627, 18 L.Ed.2d 830 (1967); Burton v.

Wilmington Parking Authority, 365 U.S. 71 81 S.Ct. 856,

6 L.Ed.2d 45 (1961).

App. 71

[4] In this case, the City of Miami leases publicly

owned land to the defendant Club so that the Club may

operate as a yacht club and provide dockage for its mem-

bers. Here, the court is not faced with the “periodic” or inci-

dental use of municipally owned recreational facilities as

in the recent case of Gilmore v. City of Montgomery, 473

F.2d 832 (5th Cir. 1973). Rather, the lease under issue is

on a permanent basis and, unlike the facilities in Gilmore,

cannot be used by anyone other than Club members and

their guests.

Neither is the court faced with the minimal degree of

state involvement present in the recent Supreme Court’s

decision in this area, Moose Lodge No. 107 v. Irvis, 407

U.S. 163, 92 S.Ct. 1965, 32 L.Ed.2d 627 (1973). In Moose

Lodge, the issuance of a liquor license to the discriminating

Club was the only nexus with the State. No special benefit

by reason of the liquor license was afforded the Club by

the state since, like other state furnished services such as

police and fire protection, water and eleet ieity the bene-

fits of a liquor license were potentially available to all state

citizens. Here, however, the defendant Club enjoys a select

privilege not available to each citizen but one coveted by

many citizens in the South Florida area. More critically,

the privilege is essential to the Club’s operation.

The facts of the instant case also differ from the re-

cent decision in Solomon v. The Miami Woman's Club,

supra, in which this court held that the particular state

lease to a state headquarters did not contain suffieient

state involvement to clothe the patently diseriminatory

membership policies of the local private club with the color

of state law. In Solomon the court was faced with an arms-

length lease entered into by a municipality far from the

App. 72

location of the local club. Here, the court is confronted

with a lease to defendant of property vital to the operation

of a yacht club. Thus, on the facts of this case, the Court

holds that the “symbiotic relationship” between the state

and the Club exists, thereby making any discriminatory

action by the Club a violation of the Fourteenth Amend-

ment. Burton v. Wilmington Parking Authority, supra.

By virtue of the lease, the acts of the Club become those

of the state and any deprivation of an individual’s rights

by the Club become a deprivation by the state.

Acts of Discrimination:

The total population of Dade County is 1,267,792’

with 187,500 of that figure Jewish and 189,666’ Black.

With these figures in mind, it taxes credulity that the

defendant Club can state without reservation that it prac-

tices no discrimination and yet, at the same time, is

unable to state whether it has ever had a Black or Jewish

member in its eighty-six years of operation.

[5, 6] Defendant relies on the absence of any ex-

clusionary provision in its By-Laws to support its in-

nocence. Certainly, the inquiry does not end there. Adams

v. Miami Police Benevolent Assn., Inc., 454 F.2d 1315 (5th

Cir. 1972) (whites-only clause not necessary for a finding

of discrimination). Rather, the court holds that when

membership in an established private club is solely by

internal sponsorship and no member has ever been se-

lected out of the large challenging group, then the mem-

bership policies of the organization are suspect. The court

7U.S. Bureau of Census (1970).

Miami Daily News, March 13, 1972.

°U.S. Bureau of Census (1970.

~

App. 73

concludes that plaintiffs have not been afforded the same

rights to membership as their White and Christian

counterparts.

[7] It has been long established that practices and

policies which are facially neutral must be subjected to

scrutiny to determine whether the practices and policies

are discriminatory in operation and effect. Yick Wo. v.

Hopkins, 118 U.S. 356, 6 S.Ct., 1064, 30 L.Ed. 220 (1886).

This principle is embodied in Title VII of the Civil Rights

Act of 1964 so that practices, policies or patterns which

are neutral on their face are condemned if they operate

to segregate and classify on the basis of race. Griggs v.

Duke Power Co., 401 U.S. 424, 91 S.Ct. 849, 28 L.Ed.2d 158

(1971); United States v. Jacksonville Terminal Co., 451

F.2d 418 (5th Cir. 1971).

The facially neutral policy before the court is the

sponsorship method of membership in the Biscayne Bay

Yacht Club. While the sponsorship requirement is appli-

cable to Black and White and Jew and Christian alike, in

a club whose members from inception have been only

White and Christian, the effect of the sponsorship require-

ment is to deny Blacks and Jews any meaningful oppor-

tunity for membership. See, e. g. Local 53 of International

Association of Heat and Frost Insulators and Asbestos

Workers v. Vogler, 407 F.2d 1047 (5th Cir. 1969) ; Ross v.

Dyer, 312 F.2d 191 (5th Cir. 1963).

The injury suffered by plaintiffs is further

strengthened by factors indigenous to this community.

The court takes judicial notice of the oversupply of boats

App. 74

in the South Florida area in relation to the drastic short-

age of dock space.!“ Indeed, the Trustees of Internal Im-

provement Fund, in speaking of the lease in question,

recognized this as a reason to waive its deed restrictions.

This fact makes even more acute the situation of the boat

owner and enthusiast who, wishing to become a member of

a yacht club for purposes of dockage, is denied member-

ship on the basis of his race or religion.

The acts of defendant, evidenced by a lack of repre-

sentation of these minority groups in its long history, are

social discrimination at best. It is a rejection of minorities

by subtle pattern or practice, one which is difficult to

prove.

Plaintiff Fincher did not appear to the court to be a

boating enthusiast. Plaintiff Golden testified at length

about his boating skills and unequivocally asserted that

the only reason the Club denied him membership is be-

cause he is Jewish; the court does not share Mr. Golden’s

conclusion.

The court can feel some sympathey for the Club

which has been in existence nearly a decade longer than

the City of Miami and which utilized the waters and the

submerged lands abutting this property for thirty years

prior to 1962. However, under the law the court concludes

that in addition to the symbiotic relationship existing be-

tween the Club and the City there is a membership policy

which is discriminatory in operation and effect. There-

upon, it is

«WAS of February of this year, South Florida had a shortage of 1900

boat slips. The Miami Herald, Feb. 15, 1973.

App. 75

Ordered and adjudged as follows:

1. That the policy, practice and custom of defendant

Biscayne Bay Yacht Club in denying membership to the

members of the Jewish religion and Black race is hereby

declared violative of the Fourteenth Amendment to the

United States Constitution.

2. Defendant Biscayne Bay Yacht Club is hereby

ordered to cease the barring of membership to applicants

solely on account of their race or religious affiliations.

Nothing in this opinion is to be construed as indicat-

ing that any traditional quality of membership such as

cordiality, achievement or integrity must be ignored by

the Club: the Club may be discriminating in accepting

members but not for unconstitutional reasons.

3. The City of Miami is dismissed as a defendant.

City of Kenosha v. Bruno, 412 U.S. 507, 93 S.Ct. 2222, 37

L.Ed.2d 109 (1973). The court notes that the City has

adopted a resolution deferring any extension of the lease

with the Club pending this decision.

[8] 4. No evidence being before the court that

defendant City of Miami was aware of the discrimination

practiced by the Biscayne Bay Yacht Club which would

require the City to terminate its lease, and assuming that

defendant Biscayne Bay Yacht Club will comply with the

court’s Order and immediately cease its discriminatory

practices, no relief is appropriate against defendant mayor

or commissioners.

5. Jurisdiction of this case is retained by the court.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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