Legal Blog

Compensation and Compliance Matters: Is Disparate Impact Out?

Last week the United States District Court for the District of Columbia invalidated the Department of Housing and Urban Development’s rule that violations of the Fair Housing Act could be proven through the disparate impact theory. Although multiple circuit courts had previously ruled that disparate impact was discrimination under the Fair Housing Act, all of these decisions preceded the United States Supreme Court decision in Smith v. City of Jackson, where the court determined that the disparate impact theory was only available where the statute in question evinced clear intent to bar effects-based rather than prohibiting merely intentional discrimination. Judge Leon ruled in the instant case that the FHA contained no indicia that it prohibited effects-based discrimination, and thus rejected HUD’s rule. Click here to read the entire article on National Mortgage News.   akaren@offitkurman.com  | 240.507.1740 Bank Manager ReimbursementsAri Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.   You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn.