Hansberry v. Lee
United States Supreme Court
311 U.S. 32 (1940)
A group of Chicago landowners agreed to a racially restrictive covenant effective only if 95% of area owners signed; only about 54% actually did, but an earlier class suit (Burke v. Kleiman) had stipulated, incorrectly, that 95% had signed. Hansberry and other African American purchasers (defendants) bought land from covenant signers with knowledge of the agreement. Lee and other covenant beneficiaries (plaintiffs) sued to enforce the covenant against Hansberry, arguing the 95%-signature issue was already conclusively decided in Burke and should bind Hansberry under res judicata, even though Hansberry was not a party to that earlier suit. The Illinois courts agreed Hansberry was bound, and the Supreme Court granted certiorari.
Whether an absent party may be constitutionally bound by a prior state-court class-action ruling if her interests were not adequately represented in that earlier litigation.