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Androvett Blog

by Dave Moore at 4:00:00 pm

An upcoming United States Supreme Court case – Texas Department of Housing and Community Affairs v. The Inclusive Communities Projects Inc. – demonstrates the ripple effect the Court can have on how business is done in the United States.

On Jan. 21, the Court will hear arguments over whether Texas discriminates and violates fair housing laws when it decides where federally subsidized low-income affordable housing developments are built. But in agreeing to hear the case, the Supreme Court has agreed to clarify the use of a principle called the “disparate impact” theory.

The disparate impact theory suggests that discrimination can still occur even if an institution’s business policies are designed to avoid prejudice. If those policies are shown to disproportionately impact one protected group more than another, the theory states that discrimination has occurred, despite efforts to avoid it.

“Because the federal government uses the theory in settling fair-lending cases, this decision could affect not only affordable housing in the U.S. but also the automobile finance industry and banking industry," says Dallas attorney John Shackelford, managing partner at Shackelford, Melton, McKinley & Norton, L.P.

Shackelford, who has more than 20 years of experience representing financial institutions, automobile dealerships and real estate developers in land acquisition, tax-credit acquisition and approval matters, can readily see the ripple effect that the Court's decision can have on major sectors of the U.S. economy.