The following excerpt is from Holodnak v. Avco Corp., Avco-Lycoming Div., Stratford, Connecticut, 514 F.2d 285 (2nd Cir. 1975):
Of course, when a private party becomes too closely intertwined with governmental authority it may appropriately be enjoined, Burton v. Wilmington Parking Authority, supra, since the difficulty of separating private from governmental action for remedial purposes would often preclude any effective relief. And where, as in this case, a private party has contractually assumed an obligation to observe the constitutionally protected interests of another, a violation of that independent obligation may be the subject of an action for compensatory damages. 7
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