Emigrant Mortgage Company, et al. v. Jean Robert Saint-Jean, et al.
SocialSecurity HabeasCorpus Securities EmploymentDiscrimina JusticiabilityDoctri
Whether the Second Circuit applied the wrong legal standards for equitable tolling, disparate impact claims, and robust causality in Fair Housing Act discrimination cases
In Texas Dept. of Housing and Community Affairs v. Inclusive Communities Project, Inc. , 576 U.S. 519 (2015), this Court held that dispar ate impact discrimination claims are cognizable under the Fair Housing Act (“FHA”), but that such clai ms must be cabined by important guardrails. The 2-1 decision below from the Second Circuit raises the following important questions on which the circuits are now divided: 1. Did the Second Circuit apply the wrong legal standard when, in the words of Judge Park’s dissent, it created a special “fairness-based” test for equitable tolling of discrimination claims that “break s with other circuits” by not requiring plaintiffs to show they acted diligently in pursu-ing their claims? 2. Did the Second Circuit apply the wrong legal standard for disparate impact claims when it split with the Third, Fourth, Ninth, Eleventh , and D.C. Circuits by allowing plaintiffs to prove thei r claims by showing lending practices had an “adverse or disproportionate” effect on borrowers of one racial grou p, as opposed to requiring that the practices be disproportionately bad for that group compared to other racial groups? 3. Inclusive Communities requires plaintiffs to demonstrate a “robust causalit y” between the challenged policy or practice and the a lleged disparate impact. The Fourth, Fifth, Eighth, Ninth, and Eleventh Circuits have split over the meaning of “robust causality,” while the Sec-ond Circuit has jettisoned it as “non-binding.” Should the Court clarify Inclusive Communities’ “robust causality requirement” or, in the alternative, overrule Inclusive Communities because it has proven unworkable? (II)