Supreme Court, Magner V. Gallagher

   This term the United States Supreme Court has agreed to take up an issue that is very important to the banking industry: whether “disparate impact” claims are cognizable under the Fair Housing Act.  This issue is of importance to you; the “disparate impact” theory has long been the primary means by which the class action bar and the Department of Justice has sought to establish that a bank’s lending practices are discriminatory without having to prove any actual intent to discriminate.

  A favorable outcome would represent a complete reversal of current Fair Housing Act jurisprudence and have a huge impact on the banking industry.  To date, 11 of 12 federal courts of appeals have held that the Federal Housing Act permits disparate impact claims.

   HCBA has joined ABA – at no cost to our Association – in our effort to convince the Supreme Court that the language of the Fair Housing Act does not allow litigation based on “disparate impact” theories of discrimination.  The American Bankers Association is preparing an amicus brief that will be filed with the Court later this month, and we believe that it would send a strong signal to the Court if we joined on that brief with all 54 state bankers associations.

NLRB DELAYS POSTING REQUIREMENT

   HCBA members should note that the National Labor Relations Board (NLRB) has announced it will delay its posting requirement rule regarding union organizing rights until April 30, 2012.  This move was made as a result of the lawsuit filed by the National Association of Manufacturers.  In the meantime, the NLRB continues to move forward with its pro-union agenda that will hurt businesses’ competitiveness.  From the rule on “ambush elections” to its rule on the Specialty Healthcare case allowing the formation of “micro unions,” the NLRB is creating an uncertain environment for job creators and needs to be held accountable, according to NAM.  Please share this information with your HR officer.