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Financial Services Law Insights and Observations

Petitioners File Supreme Court Opening Brief in Fair Housing Act Case

Disparate Impact FHA

Lending

On August 26, the petitioners in Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, Inc. et al., No. 11-1507, filed their opening merits brief in the U.S. Supreme Court on the issue of whether disparate impact claims are cognizable under the Fair Housing Act (FHA). The petitioners argue that (i) under the ordinary meaning of the relevant FHA provision, intentional discrimination—and not a mere disparate impact—is required to establish a violation of Section 804(a) of the FHA, and (ii) because the HUD rule authorizing such claims “cannot be reconciled” with the plain language of the statute, it cannot be allowed Chevron doctrine deference and must be struck down. The respondents’ brief is due October 21.