CASE NAME

Ultima Services Corporation v. U.S. Department of Agriculture et al

Overview

Plaintiff challenged a provision of the Small Business Act under which the Department of Agriculture and Small Business Administration applied a "rebuttable presumption" of "social disadvantage" to members of certain racial and ethnic groups when awarding government contracts to minority-owned businesses.

Details

Plaintiff argued that the rebuttable presumption of social disadvantage violated the Equal Protection Clause.

In July 2023, the court held that the rebuttable presumption did not survive strict scrutiny. Relying in part on the Supreme Court's decision in Students for Fair Admissions v. Harvard (2023), the court held that Defendants failed to show a compelling interest for their use of the rebuttable presumption, and that the presumption was not narrowly tailored to serve the asserted interest.

Court

U.S. District Court, Eastern District of Tennessee

Status

Filed March 04, 2020 | Ongoing

Plaintiff is now seeking "additional equitable relief" including, among other things, an order precluding Defendants from using this government program in her industry. Defendants oppose the Plaintiff's motion.