CASE NAME

Roberts et al v. Progressive Preferred Insurance Company et al

Overview

Plaintiffs brought a class action challenge to Defendant’s program that offers grants of $25k to Black-owned small businesses to put toward purchase of a commercial vehicle.

Details

Defendants filed a motion to dismiss, arguing that Plaintiffs lacked standing because they failed to show they were ready and able to apply for the grant. Defendants also contended that the grant program constituted a “gratuitous promise” rather than a contract, placing it outside the scope of Section 1981, which prohibits discrimination in contracts. Additionally, they argued that applying Section 1981 to this grant program would violate the First Amendment right to free speech. Finally, Defendants maintained that the program was a lawful affirmative action initiative under the Supreme Court’s decision in Johnson v. Transportation Agency, Santa Clara County, 480 U.S. 616 (1987).

The district court dismissed the lawsuit in May 2024, concluding that Plaintiffs lacked standing because they failed to demonstrate that they were ready and able to apply for the grant program absent the racial criteria.

Court

U.S. District Court, Northern District of Ohio

Status

Filed August 16, 2023 | Appealed

Relevant Law

Section 1981
American Alliance for Equal Rights v. Fearless Fund Management, LLC (Eleventh Circuit Court of Appeals)

Significance

This case illustrates that arguments based on standing can be a powerful tool in defending some anti-DEI lawsuits.