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Judicial Rulings

U.S. Supreme Court
Redlining law preempted

The U.S. Supreme Court's refusal to review the case of A. T. Tsoumas, Director,Illinois Department of Financial Institutions v. Glen Ellyn Savings and Loan Association,et on October 30 in effect upheld a decision by the Illinois Supreme Court nullifying the state's redlining law.

The Illinois high court ruled in March that, under the supremacy clause of Article

VI of the U.S. Constitution,The federal Home Mortgage Act of 1975 (12 U.S.C secs. 2801 etseq., (1976)) preempts application of Illinois' Financial Institutions Disclosure Act(///. Rev. Slat. 1975, Ch.95,sec. 201 et seq).

Delivering the court's opinion, Justice

William G. dark said, as did the circuit court, that the state's statute could not be applied to federally chartered banks and savings and loan associations.The court said while both laws were aimed at halting redlining — discriminatory lending practices in certain urban areas — the federal act, in its language and by its legislative history, meant to preempt federally chartered institutions from state disclosure laws.

Most important, however, the Illinois Supreme Court ruled the entire Illinois statute null because of a clause in the act specifying the entire act to be null if any of its provisions were found to invalid.

U.S. District Court
Chicago school faculty transfer struck down

U.S. District Judge John Powers Crowley ruled November 8 that the Chicago Board of Education's plan for transferring teachers is unconstitutional. The plan, struck down in Kolz, et al. v. the Board of City of Chicago, exempted teachers age 55 and over from participating in a non-

voluntary program designed to integrate the faculties of public schools in Chicago.

The plaintiffs in the case alleged the plan discriminated against younger teachers thereby violating the Fourteenth Amendment's equal protection clause. The defense argued senior employees were more valuable in terms of experience and

stability within a community, might be more likely to retire if transferred, might find it more difficult to adapt to a new environment and might experience demoralization over such a transfer.

Judge Crowley, however said the justifications for the age discriminations lacked factual support and failed totally to "present even a scintilla of substantiation" which could "withstand even the most minimal constitutional scrutiny."

30/ January 1979/ Illinois Issues