Supreme Court Upholds FHA's Disparate Impact Theory
The Supreme Court announced their ruling on disparate impact, upholding the Fifth Circuit Court of Appeal's decision that "disparate impact claims are cognizable under the Fair Housing Act." Read more about the ruling here.
The long-awaited test of disparate impact was delivered today by the Supreme Court. A divided court (5-4 decision) upheld the use of “disparate impact” legal theory in fair lending discrimination cases.
As reported by the American Banker, “The high court's decision bolsters efforts by law enforcement authorities and the Consumer Financial Protection Bureau, which have brought legal cases alleging fair-lending violations by lenders despite claims that no discrimination was intended.”
Justice Anthony Kennedy delivered the opinion of the court. Justice Kennedy stated, “Recognition of disparate-impact claims is consistent with the FHA’s central purpose.”
TRUPOINT will continue to monitor developments and share updates as they occur. As always, if you have any questions or concerns, please get in touch. In the meantime, here are a few links to additional resources:
- Supreme Court Opinion: http://www.supremecourt.gov/
- American Banker, "Supreme Court Backs 'Disparate Impact' Theory in Texas Case": http://www.americanbanker.com/
news/law-regulation/supreme- court-backs-disparate-impact- theory-in-texas-case-1075083- 1.html
- TRUPOINT Partners, "HUD's Rule Revision on Disparate Impact": http://www.trupointpartners.
com/blog/bid/57640/Compliance- Alert-HUD-Creates-Standard-on- Discriminatory-Effect
- Housing Wire, "Supreme Court: Fair Housing Act Claims Can Use Disparate Impact": http://www.housingwire.com/
articles/34306-supreme-court- fair-housing-act-claims-can- use-disparate-impact
- Consumer Financial Services Watch, "Statement of Paul F. Hancock, K&L Gates LLP, on Decision of U.S. Supreme Court Upholding 'Disparate Impact Liability' Under the Fair Housing Act": http://www.consumerfinancialserviceswatch.com/2015/06/statement-of-paul-f-hancock-kl-gates-llp-on-decision-of-u-s-supreme-court-upholding-disparate-impact-liability-under-the-fair-housing-act/
- USA Today, "Supreme Court Upholds Housing Discrimination Law": http://www.usatoday.com/story/
news/nation/2015/06/25/ supreme-court-housing- discrimination/26097319/