American Alliance for Equal Rights v. Fearless Fund Management, LLC | Advancing DEI Initiative

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GLOSSARY

The definitions in our glossary are primarily sourced from Nolo’s Plain-English Law Dictionary and Cornell Law School’s Legal Information Institute. We have made slight modifications where needed for brevity and to better tailor the definitions to the specific needs of users of this website. For more detailed explanations of the terms, users are encouraged to review the definitions on these websites or conduct their own independent research.

A written request made after a trial court’s final ruling, asking another court to review the trial court's decisions. Appellate courts typically decide whether a legal mistake was made and whether the mistake changed the outcome of the case.

An out-of-court procedure for resolving disputes in which one or more people, “arbitrator(s),” hear evidence and make a decision. It's like a trial in some ways, but typically proceeds more quickly and with less formality.

A lawsuit in which a large number of people with similar legal claims join together (the class) to sue. In this context, it likely refers to cases in which a group of people claim they have suffered discrimination at the hands of an organization.

A document filed in court that starts a lawsuit. In some states and in some types of legal actions, the complaint is called a petition.

the money awarded to one party because of an injury or loss caused by another party.

The person or entity against whom a civil case is filed.

A court order requiring a person to do or stop doing a specific action.

Harm done to a person or organization by the acts or omissions of another. Injury may be physical or may involve damage to reputation, loss of a legal right, or breach of a contract.

An appeal that occurs before the trial court's final ruling on an entire case.

Any party to a lawsuit. This might include a plaintiff, defendant, petitioner, respondent, cross-complainant, or cross-defendant, but not a witness or attorney.

The process of bringing and pursuing (litigating) a lawsuit.

A formal request, either written or oral, that a judge enter a particular order or ruling in a lawsuit.

A motion asking the judge to throw out one or more claims or an entire lawsuit.

These phrases refer to a case whose decision rests upon the law as it applied to the particular evidence and facts presented. This is in opposition to cases whose decisions rest upon procedural grounds (e.g. not filing a timely complaint).

The person, corporation, or other legal entity that initiates a lawsuit seeking damages, enforcement of a contract, or a court determination of rights. In certain states and for some types of lawsuits, the term petitioner is used instead.

Any legal document filed in a lawsuit, including the complaint, answer, and motion(s). The pleading stage gives notice to both parties of the intention of the opposing party regarding the lawsuit.

An opinion of a federal or state court of appeals establishing a legal principle or rule that must be followed by lower courts when faced with similar legal issues.

A court order early in a lawsuit that prohibits the parties from taking a disputed action until the court can decide the merits of the case.

A document that public companies must provide their shareholders prior to a shareholder meeting. The document summarizes proposals submitted to shareholders for a vote.

Punishment of an employee by an employer for engaging in legally protected activity like making a complaint of harassment or participating in workplace investigations. It can include any negative job action, such as demotion, discipline, or firing.

A person's right to sue and have a court rule on their claims. To invoke a federal court's jurisdiction and have the court exercise its remedial powers on their behalf, a person must have standing.

A final decision by a judge, upon a party's motion, that resolves a lawsuit before there is a trial.

CASE NAME

American Alliance for Equal Rights v. Fearless Fund Management, LLC

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Overview

Plaintiff is challenging Defendant’s grant program for businesses run by Black women entrepreneurs, arguing that it violates section 1981.

Details

Defendant argued that Plaintiff lacked standing, that it had a First Amendment right to operate the grant program, and that the program was a valid affirmative action program approved by the Supreme Court in Johnson v. Transp. Agency, 480 U.S. 616 (1987).

The court held by a 2:1 majority that Plaintiff had standing to sue and that a preliminary injunction stopping the grant contest is appropriate, because the contest is substantially likely to violate section 1981, is unlikely to have protections under the First Amendment, and inflicts irreparable injury.

The dissenting judge would have found that Plaintiff lacked standing, because none of Plaintiff's members had a genuine interest in actually entering the grant contest were they eligible, and therefore lacked the injury necessary to establish standing.

Court

Eleventh Circuit Court of Appeals

Status

Filed September 26, 2023 | Settled

After the preliminary injunction was granted, the parties announced a settlement of the lawsuit on September 11, 2024, in which Fearless Fund decided to cease operating the grant contest.

Relevant Law

Section 1981 First Amendment

Topic

Targeted programs Freedom of speech and religion

Litigation History

U.S. District Court, Northern District of Georgia

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Significance

This decision is the first major appeal court ruling applying section 1981 to a targeted program seeking to advance DEI. If the court's reasoning is adopted more widely, it could have implications for the legality of other targeted programs such as scholarships, grants, and fellowships.