that this transaction does not constitute a credit transaction
under the ECOA and in turn, the remaining issues of whether
Ritchie Realty is a creditor and whether Laramore constitutes an
applicant under the ECOA are moot. Accordingly, the Court grants
Ritchie Realty’s motion to dismiss.
CONCL 0}
For the reasons set forth above, the Court grants Ritchie

Realty’s motion to dismiss.

ENTER:

» nA Tres L
cebrg - Marovich
Uni $tates District Judge

DATED: A VA 04)


accepted as true. Wilson v. Formigoni, 42 F.3d 1060, 1062 {7th
Cir. 1994). To withstand a motion to dismiss, a complaint must
allege facts which sufficiently set forth the essential elements

of the cause of action. Gray v. County of Dane, 854 F.2d 179,

182 (7th Cir. 1988). Dismissal is proper only if it appears
beyond a doubt that a plaintiff can prove no set of facts in
support of a claim which would entitle him to relief. Conley v.
Gibson, 355 U.S. 41, 45-46 (1957).
II. Equal Credit Opportunity Act Claim

The ECOA defines credit as “the right granted by a creditor
to an applicant to defer payment of a debt, incur debt and defer
its payment, or purchase property or services and defer payment
therefor.” 15 U.S.C. § 1691(a)(d). Therefore, the pivotal
question is whether a residential landlord’s renting of property
falls within the category of “deferred payment of debt”. The
Court finds that it does not. Rental payments are typically paid
at the first of each month payment is applied for that coming
month. In other words, leases are not deferred debt but prepaid
advancements of a debt for contemporaneous use. Hence, this is
not a transaction where a party is allowed to accrue a debt and
then defer its payment to a later date. Moreover, in 1985, the
Board of Governors of the Federal Reserve Board (the agency
charged with implementing regulations interpreting the ECOA)
stated that the ECOA should not be construed to cover lease
transactions. Equal Credit Opportunity, 50 Fed. Reg. 48018,
48019-20 (November 20, 1985). For these reasons, the Court finds


Minute Order Form (06/77)

\ ( ( United States District Court, Northern District of Illinois

Needs | George. Maroven | Sumi
CASE NUMBER 03 C 1333 DATE 9/24/2003

CASE Laramore vs. Ritchie Realty Management

TITLE

{in the following box (a) indicate the party filing the motion, ¢.g., plaintiff, defendant, 3rd party plaintiff, and (b) state briefly the nature
MOTION: of the motion being presented.]
DOCKET ENTRY:
(1) a Filed motion of [ use listing in “Motion” box above.]
(2) a Brief in support of motion due
@) Qo Answer brief to motion due__. Reply to answer briefdue____—.
(4) oO Ruling/Hearing on__setfor___at
(5) a Status hearing{held/continued to] [set for/re-set for}on___—_—ssetfor____—_—at
(C)) Qo Pretrial conference[held/continued to} [set for/re-set for)on____—setfor__—sat__.
(7) oO Trial{set for/re-set for]on___at
(8) a (Bench/Jury trial] [Hearing] held/contimuedto at
(9) ia} This case is dismissed (with/without] prejudice and without costs(by/agreement/pursuant to]
OFRCP4(m) O Local Rule 41.1 CFRCP4i(a)(1) OO FRCP41(2)(2).

(10) «=< [Other docket entry) | ENTER MEMORANDUM OPINION AND ORDER. The Court grants

Ritchie Realty’s motion to dismiss.

(il) [For further detail see order attached to the original minute order.]

No notices required, advised in open court.

No notices required.

Notices mailed by judge’s staff,

Notified counsel by telephone.

wo | Docketing to mail notices.
| Mail AO 450 form.

Copy to judge/magistrate judge. 1ynod y
courtroom ft
1D deputy’s 2035
initials Sa .
ime received in Pn ive
central Clerk's Office SNL PP



UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION

BRENDA LARAMORE,

Plaintiff,
CASE 03 C 1333

Vv. Judge George M. Marovich

RITCHIE REALTY MANAGEMENT
COMPANY,

DOCKETED

SEP 25 2003

Defendant.
PB }349)

Presently before the Court is Defendant, Ritchie Realty
Management Company’s (“Ritchie Realty”) motion to dismiss,
pursuant to Federal Rule of Civil Procedure 12(b) (6), Plaintiff
Brenda Laramore’s (“Laramore”) one-count complaint. Laramore
alleges in her one-count complaint that Ritchie Realty violated
the Equal Credit Opportunity Act (“ECOA”) by not allowing
Laramore to apply for an apartment because Laramore intended on
using a Section 8 public assistance voucher to pay some or all of
her rent. However, Ritchie Realty argues that this request for
an application to rent an apartment is not a “credit” transaction
under the ECOA, Ritchie Realty is not a “creditor” under this
statute and Laramore is not an “applicant” under said statute.
Therefore, Ritchie Realty argues that the complaint should be
dismissed for failing to state a valid cause of action. This is

a case of first impression.


BACKGROUND

Unless otherwise noted, the following facts are not in
dispute. On or about October 19, 2002, Laramore was a
participatnt in a government program that provided monetary
assitance for housing in the form of a “Section 8" voucher, which
is given to a landlord to pay a portion of the participant’s
rent. In October, 2002, Laramore, while searching the internet
for an apartment, found an advertisement for a three bedroom, two
bathroom apartment located at Sheridan and Pine. She called the
telephone number listed in the advertisement and made an
appointment to view the apartment. On or about October 19, 2002,
she inspected an apartment at 3915 N. Pine Grove in Chicago,
Illinois and determined that she would like to fill out an
application to obtain this apartment. On or about October 21,
2002, Laramore contacted Ritchie Realty by phone and requested an
application for the apartment. However, upon discovering that
Laramore intended on using a Section 8 voucher, the woman on the
phone allegedly stated that this apartment was not available to
anyone using a Section 8 voucher and that all the apartments
eligible for rent with Section 8 vouchers had already been
rented.

DISCUSSION
I. Standard f Motio

When considering a motion to dismiss, a court must view the
complaint’s allegations in the light most favorable to the

plaintiff, and all well~pleaded facts in the complaint must be