Burton v. Wilmington Parking Authority

In Burton v. Wilmington Parking Authority, 365 U.S. 715, 81 S.Ct. 856, 6 L.Ed.2d 45 (1961), a restaurant that was located in a municipally-owned parking garage refused to serve a black man. The man sued, alleging that the restaurant's actions violated the fourteenth amendment. The Court found that the parking garage, and therefore the city, profited from the discrimination, and that the profits were "indispensable elements in ... the financial success of a government agency." Id. at 724, 81 S.Ct. at 861. Consequently, the Court held, "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," and thus the restaurant's discrimination was state action. Id. at 725, 81 S.Ct. at 862. The Court found state action in the discriminatory service policy of a privately operated restaurant located in a publicly owned parking garage. There was no question that the restaurant controlled its own affairs and had reached on its own the decision to refuse service to blacks. But the Court found that "The State has so far insinuated itself into a position of interdependence with Eagle (Coffee Shop) that it must be recognized as a joint participant in the challenged activity." Id., 365 U.S. at 725, 81 S.Ct. at 862. The Court emphasized the restaurant's use of "an integral part" of a publicly owned and maintained building which was by statute dedicated to "public uses," and the mutual benefits conferred upon both the restaurant and the parking authority by their association. The Court noted particularly that, to the extent that the restaurant's discriminatory service policy contributed to its profits, that policy contributed also to "the financial success of a government agency." Id., at 724, 81 S.Ct. at 861. The Court warned, however, that it did not intend "to fashion and apply a precise formula for recognition of state responsibility," and that "only by sifting facts and weighing circumstances can the nonobvious involvement of the state in private conduct be attributed its true significance." Id., at 722, 81 S.Ct. at 860.