Burton v. Wilmington Pkg. Auth

In Burton v. Wilmington Pkg. Auth. (1961) 365 U.S. 715, a restaurant located in a parking structure maintained by a state agency refused to serve an African American. The state agency, the Wilmington Parking Authority, was created to acquire land and build parking facilities for the public benefit. The Burton court found state action because: (1) the land and building were publicly owned; (2) the Wilmington Parking Authority was empowered to lease portions of its structures if necessary and feasible for the financing and operation of its facilities; (3) experts advised the Wilmington Parking Authority that revenues from parking and proceeds from the sale of bonds would not be sufficient to finance the construction costs, so the Wilmington Parking Authority decided it needed to enter into long term leases with responsible tenants; (4) the Wilmington Parking Authority leased space to the restaurant prior to completing the parking structure and agreed to complete construction expeditiously, including decorative finishing of the leased premises, necessary utilities and other items at no cost to the restaurant; (5) the restaurant spent $ 220,000 to make the space suitable for its operation; (6) to the extent such improvements were part of the structure, the restaurant enjoyed the Wilmington Parking Authority's tax exemption; (7) the Wilmington Parking Authority agreed to furnish heat for the restaurant, to provide gas service for the boiler room, and to pay for all necessary structural repairs, all repairs to exterior surfaces except store fronts and any repairs caused by the restaurant's own act or neglect; (8) the Wilmington Parking Authority retained the right to place any directional signs on the exterior of the restaurant space; (9) the restaurant agreed to pay an annual rental of $ 28,700; (10) the restaurant covenanted to comply with all applicable federal, state or municipal laws, statutes, ordinances and rules and regulations; (11) the lease did not require the restaurant to make its restaurant services available to the general public on a nondiscriminatory basis even though the Wilmington Parking Authority had the power to adopt rules and regulations respecting the use of its facilities; (12) the restaurant argued that serving African Americans would injure its business; (13) according to the restaurant, profits earned by discrimination benefited the Wilmington Parking Authority. ( Burton, supra, 365 U.S. at pp. 717-724.) Burton stated: "By its inaction, the Wilmington Parking Authority, and through it the State, has not only made itself a party to the refusal of service, but has elected to place its power, property and prestige behind the admitted discrimination. The State has so far insinuated itself into a position of interdependence with the restaurant that it must be recognized as a joint participant 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." (Burton, supra, 365 U.S. at p. 725.)