CASE NAME

Nuziard et al v. Minority Business Development Agency et al

Overview

Plaintiffs challenged the Minority Business Development Agency’s eligibility criteria for supporting businesses. They argue that the agency's decision-making process relies on a codified list of preferred races and ethnicities and explicitly aims to help only minority-owned businesses.

Details

Defendants argued that Plaintiffs in this case did not have standing—either because they would not have qualified regardless of whether race or ethnicity had been a factor, or because they were not actually "ready and able" to apply at the time that they filed the complaint. Defendants also argued that the eligibility criteria were constitutional because the government had a compelling interest in "remedying the effects of past discrimination" that they at least passively participated in.

On March 5, 2024, the court decided in favor of Plaintiffs on their Equal Protection Clause claim. The court ruled that the agency can no longer use racial or ethnic classifications in determining whether businesses can receive Business Center programming.