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Insight Fall 2002

 

Intent v. Effect:  The Challenge to the Disparate Impact Defense

by Andrea A. Mujahid-Moore, Esq.

 

The U. S. Supreme Court, during its recently ended term, agreed to review the issue of whether the discriminatory effect of a “facially neutral” policy violates the Fair Housing Act.  In a case called Cuyahoga Falls v Buckeye Community Hope Foundation, a race-neutral policy, if followed, would most certainly have a disproportionately negative effect on the housing possibilities of the African- American homeseeker.

In this new millennium there are still people or groups of people who make a deliberate decision to discriminate based on their beliefs about certain groups of people.  In fact, fair housing laws were enacted to protect certain groups or classes of people from being victims of other peoples’ biases. Most of us recognize that conscious acts of discrimination or different treatment based on race, color, religion, sex, disability, national origin or familiar status clearly violate the Fair Housing Act.  But what about the effects of policies, rules and regulations that are not intended to discriminate against anyone but disproportionately impact protected groups of people; do they also violate the Fair Housing Act?

A discriminatory effect or disparate impact case stems from what is referred to as a facially neutral policy.  This simply means that there was no intent to discriminate built into the policy but the implementation of the policy has a discriminatory effect on the members of one or more protected classes. 

Disparate impact cases are based on statistical data that show to what extent, if implemented, the neutral policy has impacted or would negatively impact a particular class of people such as families with children or those belonging to a minority group.  This is precisely the question currently being asked of the nation’s highest court. The Fair Housing Act does not indicate whether intentional discrimination is the only type of discrimination the law was enacted to address.

Case law has provided some guidance.  Much of the rationale for case decisions in housing discrimination cases has been extracted from employment discrimination cases.  The Supreme Court, in an employment discrimination case, (Griggs v Duke Power Co, 1971) concluded that the purpose of the equal employment laws was “to achieve equality of employment opportunities and remove barriers that have operated in the past.” Following the Supreme Court’s lead, the lower federal courts have consistently applied the same standard to housing discrimination cases and held that where the effect of a facially neutral policy causes a disparate impact on the members of a protected class the policy cannot stand.  As a safeguard against housing providers being treated unfairly, if a facially neutral policy or practice has a disparate impact on a protected group or class, the housing provider would be given the opportunity to show that the practice was necessary for providing the housing service.

At the Federal Circuit Court level there is a strong consensus among the circuits that the disparate impact theory of discrimination in the context of housing is appropriate.   There are eleven circuit courts and none of them have directly espoused the view that the discriminatory effect theory is an inappropriate standard for fair housing cases.  Nonetheless, there is reason for concern that the Justices of this Supreme Court have agreed to hear the Cuyahoga Falls case.

The last time the Supreme Court visited this issue was in 1988 in the Town of Huntington vs. NAACP caseThe make up of that court was slightly more liberal than the present Supreme Court. Even though the Reagan administration filed a brief urging the Court to rule against the disparate impact approach as a theory of discrimination in housing cases, the Court was reluctant to do so. Rather than choosing to eliminate the standard altogether, the court preferred to “reserve” or put aside the issue for review at a later date.

Since that time, with the Reagan and Bush appointees, the Court has become more conservative.  In addition to the more conservative Court, it is very likely that the current Bush administration will follow the lead of both the Reagan and former Bush administrations and file briefs in favor of eliminating the standard.

This issue is one that can greatly impact the way the Fair Housing Act is enforced and fair housing groups across the country will be watching it closely.

 
 

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