Parvati Corp. v. City of Oak Forest

The owner (an Asian Indian) of 60-room hotel in a manufacturing district near a major highway in Oak Forest, a Chicago suburb, sued the city, charging racial discrimination in zoning (42 U.S.C. 1981, 1982) and that the zoning ordinance was unconstitutionally vague, based on the city’s refusal to allow it to sell the hotel for conversion to a retirement home to be owned by a church in which most of the membership is African-American. The city claimed that a retirement home would not be “highway oriented” and, after the plan was proposed, amended its ordinance so that the hotel became nonconforming, and denied a special use permit. The owner later lost the hotel in foreclosure; it is now operating as a hotel under new ownership. The district court granted the defendants summary judgment. The Seventh Circuit affirmed, noting numerous irregularities in the zoning process, but stating that the owner presented no evidence that any comparable facility, serving a white clientele, has ever been permitted by Oak Forest in a comparable district.

Parvati Corp. v. City of Oak Forest