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

When an employee quits a job because working conditions are so intolerable that a reasonable person in the same situation would quit.

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.

Working conditions that are created when unwelcome, discriminatory conduct that is so severe or pervasive that it alters the conditions of a person's employment and creates an abusive working environment.

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 legal rule under which the federal and state governments are immune from being sued in their own courts without their consent. When it applies, it's an impenetrable defense to a claim for damages.

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 court order that suspends or stops certain proceedings.

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

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.

On June 21, 2022, Plaintiff and Defendants both filed motions for . Plaintiff argued that Defendants precluded them from competing for contracts by reserving such contracts for a program that allegedly discriminates and violates the equal protection clause. Defendants argued that Plaintiff did not have standing to assert its claim, nor did they establish a genuine issue of material fact regarding the constitutionality of the program.

On July 19, 2023, the court granted in part and denied in part Plaintiff's motion for summary judgment, and denied Defendants' motion for summary judgment. The court held that the rebuttable presumption did not survive strict scrutiny, a form of judicial review that courts use to determine the constitutionality of a government action. Relying in part on the Supreme Court's decision in Students for Fair Admissions v. Harvard (2023), the court stated 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. Defendants were ultimately prohibited from using the rebuttable presumption of social disadvantage in administering its program.

On September 15, 2023, Plaintiff filed a motion for permanent injunction and additional equitable relief.

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.

Relevant Law

Equal Protection Clause

Topic

Government programs

Chu, et al v. Rosa (U.S. District Court, Northern District of New York)