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Civil Rights v. Economic Rights: An Unfair Choice

It may seem an unlikely case for a legal organization known for advancing women's rights, but Legal Momentum joined a brief of amici curiae in Domino's Pizza v. McDonald, heard by the U.S. Supreme Court on December 6, because, "We arecommitted to vigorous enforcement of the civil rights laws to eradicate all forms of discrimination, including race discrimination," explains Lisalyn Jacobs, Vice President of Governmental Affairs.

The plaintiff, John McDonald, an African-American, was the president of JWM, a corporation that had entered into four contracts to build restaurants for defendant Domino's Pizza. McDonald alleged that, after some difficulties arose, a Domino's official threatened him with financial repercussions if he attempted to continue performing the contracts. McDonald said the Domino's official told him, "I don't like dealing with you people." McDonald believes Domino's violated the law, in particular civil rights statute 42 U.S.C1981, when it terminated the contracts, causing him to suffer emotional distress, mental anguish, and humiliation. In 2002 McDonald filed suit against Domino's for $8-million dollars claiming the company had driven him into bankruptcy.

The brief argues that Section 1981 of U.S. law (equal contracting under the law) must be interpreted broadly to achieve the goal of eliminating racial discrimination in contracting, and that corporate law principles should not be applied in a civil rights case to defeat the purpose of the civil rights law. The brief further points out that minority business owners should not be forced to choose between being able to assert their civil rights against race discrimination in contracting, and giving up the protection of the corporate form in their business dealings. No one should have to pick between civil rights and economic rights.

"Legal Momentum hopes that the Justices were persuaded that Section 1981 did protect McDonald's rights as an individual," says Jacobs, who followed the arguments in court, adding, "Section 1981 is very important to minorities, in particular women of color who own small businesses as well as men." Women own 38% of all businesses in the U.S. and employ about 27 million people. Women own more than 33% of the 3.25 million firms owned by minorities in the U.S. Firms owned by women are growing at approximately six times the rate of all U.S. firms.