Opinion ID: 2603734
Heading Depth: 1
Heading Rank: 10

Heading: Sex Discrimination Based on Disparate Impact on Women

Text: (11a) In a separate cause of action in their first amended complaint, plaintiffs allege defendants' minimum income policy constitutes sex discrimination because of an alleged disparate impact of the policy on women. Plaintiffs make the following central allegations: Plaintiffs are female heads of low income families whose sole income is derived from public assistance. A disproportionate number of families receiving public assistance are headed by women. Women generally have lower average incomes than men.Defendants' minimum income policy excludes a disproportionate number of female-headed households from the pool of applicants to whom defendants will rent units, since a statistically significant greater number of families headed by women are adversely impacted by defendants' policies than families headed by men. The Court of Appeal rejected plaintiffs' sex discrimination claim, holding that a disparate or adverse impact test does not apply in cases brought under the Unruh Act. [16] (12) As developed in federal law, the disparate impact test allows a plaintiff in certain contexts to establish a prima facie case of discrimination by showing that a defendant's policies or practices have an adverse impact on a statutorily protected class of persons such as women, Blacks, Hispanics, etc. The test originated in Griggs v. Duke Power Co. (1971) 401 U.S. 424 [28 L.Ed.2d 158, 91 S.Ct. 849], a case arising under title VII of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-2), which prohibits discrimination in employment. The United States Supreme Court held that a title VII plaintiff may prove that a facially neutral employment practice nonetheless actually discriminates because of its disproportionate negative impact on the particular protected class to which plaintiff belongs. (401 U.S. at pp. 431-432 [28 L.Ed.2d at p. 164].) The Supreme Court found the fundamental purpose of title VII to be the removal of artificial, arbitrary, and unnecessary barriers to employment when the barriers operate invidiously to discriminate on the basis of racial or other impermissible classification. (401 U.S. at p. 431 [28 L.Ed.2d at p. 164].) As a result, it concluded: Congress directed the thrust of [title VII] to the consequences of employment practices, not simply the motivation. ( Id. p. 432 [28 L.Ed.2d at p. 165], italics in original.) The disparate impact test continues to apply in employment discrimination cases under title VII. As the Supreme Court recently explained in Wards Cove Packing Co., Inc. v. Atonio (1989) 490 U.S. 642, 645-646 [104 L.Ed.2d 733, 744, 109 S.Ct. 2115, 2119]: Under this basis for liability ... a facially neutral employment practice may be deemed violative of Title VII without evidence of the employer's subjective intent to discriminate that is required in a `disparate treatment' case. To establish a prima facie case under the disparate impact test, the plaintiff must show that the application of a specific or particular employment practice has created a disparate impact on a statutorily protected class. ( Id. at p. 657 [104 L.Ed.2d at p. 751, 109 S.Ct. at p. 2124].) In this regard, the relevant statistical comparison is between the representation of the protected class in the employer's work force and in the qualified population in the labor force, unless the plaintiff can establish that the dearth of unqualified persons was due to the employer's practices. ( Id. at p. 651, fn. 7 [104 L.Ed.2d at p. 748, 109 S.Ct. at pp. 2121-2122], italics added.) If a prima facie case is established, the burden of producing evidence shifts to the employer, who must articulate a substantial business justification for the challenged practice. The burden of persuasion remains on the plaintiff. If the plaintiff is unable to persuade the trier of fact that the defendant's business justification is insubstantial, the defendant will prevail unless the plaintiff establishes pretext, i.e., that other employee selection methods or policies of lesser adverse impact would also serve the defendant's legitimate interests. (490 U.S. at pp. 656-661 [104 L.Ed.2d at pp. 750-754, 109 S.Ct. at pp. 2124-2127].) The disparate impact test has been applied by California appellate courts in analyzing employment discrimination claims under the Fair Employment and Housing Act (FEHA) (Gov. Code, § 12900 et seq.), California's counterpart to title VII. ( Ibarbia v. Regents of University of California (1987) 191 Cal. App.3d 1318 [237 Cal. Rptr. 92]; City and County of San Francisco v. Fair Employment & Housing Com. (1987) 191 Cal. App.3d 976, 985-986 [236 Cal. Rptr. 716].) No case has extended the test to the Unruh Act. (11b) Plaintiffs urge that extension of a disparate impact test to claims under the Unruh Act is necessary to further the purpose of the Act to combat arbitrary discrimination in public accommodations. They also contend that analogous federal precedent justifies the adoption of the test in Unruh Act cases. We disagree. Initially, plaintiffs point to nothing in the language or history of the Unruh Act that would suggest the Legislature intended the use of such a test. As noted above, the Act was passed in 1959 and its predecessor in 1897, long before the disparate impact theory was recognized by the federal courts. On the contrary, the language of the Act suggests that intentional acts of discrimination, not disparate impact, was the object of the legislation. Section 52 states: Whoever denies, or who aids, or incites such denial, or whoever makes any discrimination, distinction, or restriction on account of sex, color, race ... contrary to the provisions of section 51 ..., is liable for each and every such offense for the actual damages, and such amount as may be determined by a jury, or a court sitting without a jury, up to a maximum of three times the amount of actual damage but in no case less than two hundred fifty dollars ($250), and such attorney's fees as may be determined by the court in addition thereto, suffered by any person denied the rights provided in Section 51.... (Italics added.) Several aspects of the foregoing language point to an emphasis on intentional discrimination. The references to aiding and inciting denial of access to public accommodations, to making discriminations and restrictions, and to the commission of an offense imply willful, affirmative misconduct on the part of those who violate the Act. Moreover, the damages provision allowing for an exemplary award of up to treble the actual damages suffered with a stated minimum amount reveals a desire to punish intentional and morally offensive conduct. In contrast, title VII of the Civil Rights Act does not allow recovery of compensatory or punitive damages, but confines the plaintiff to specified forms of equitable relief. ( White v. Washington Public Power Supply System (9th Cir.1982) 692 F.2d 1286, 1290; Richerson v. Jones (3d Cir.1977) 551 F.2d 918, 926-927; Robinson v. City of Lake Station (N.D.Ind. 1986) 630 F. Supp. 1052, 1064.) In addition, as we have noted, the Act explicitly exempts standards that are applicable alike to persons of every sex, color, race, religion, ancestry, national origin, or blindness or other physical disability. (§ 51.) By its nature, an adverse impact claim challenges a standard that is applicable alike to all such persons based on the premise that, notwithstanding its universal applicability, its actual impact demands scrutiny. If the Legislature had intended to include adverse impact claims, it would have omitted or at least qualified this language in section 51. Plaintiffs also argue that the disparate impact test has been extended to title VIII of the Civil Rights Act, which deals with housing discrimination. The federal decisions, however, appear to be in conflict on the use of the test in title VIII cases, with some cases holding that an action against a private landlord cannot be maintained on allegations of mere disparate impact, and with others holding to the contrary. ( Brown v. Artery Organization, Inc. (D.D.C. 1987) 654 F. Supp. 1106, 1114-1117 [discussing conflicting decisions from federal appellate courts, finding no controlling authority, and holding that proof of discriminatory intent is necessary to establish a prima facie case against a private landlord].) [17] Because of the conflict in the federal cases and the obvious differences in language and purpose between title VIII and the Unruh Act, title VIII cases are of little assistance in our task of statutory interpretation. [18] As we have noted, the Unruh Act is not an isolated statute. It is part of a large body of legislation that has been enacted at the federal and state levels since the Supreme Court invalidated the original federal public accommodations statute in the Civil Rights Cases, supra, 109 U.S. 3. Title II of the Civil Rights Act of 1964 (42 U.S.C. § 2000a(a)) also guarantees full and equal access to specified public accommodations and at least 38 states have public accommodations statutes that prohibit discrimination by business establishments against their customers. (Note, supra, 7 N.Y.U. Rev. L. & Soc. Change at pp. 219-226, 238-239, 272.) Yet, plaintiffs have cited no case (nor has our research disclosed any) in which a disparate impact test was used in applying any of these statutes. [19] In sum, plaintiffs have failed to support their argument for use of the disparate impact test with statutory language, history, or relevant authority. [20] (13) As the Court of Appeal stated in rejecting plaintiffs' claim based on disparate impact analysis: We note that the general antidiscriminatory objectives of the Unruh Act are much broader than the specific antidiscrimination principles underlying titles VII and VIII. Those two federal laws, with their state FEHA counterparts, aim to eliminate discrimination solely in employment and housing as to enumerated classes of persons. They represent areas of special concern to Congress and the Legislature. It might well be more appropriate to single out those two areas for special attention. The Unruh Act, however, aims to eliminate arbitrary discrimination in the provision of all business services to all persons. Adoption of the disparate impact theory to cases under the Unruh Act would expose businesses to new liability and potential court regulation of their day-to-day practices in a manner never intended by the Legislature. This we decline to do. We agree with the summary and reasoning of the Court of Appeal and likewise decline to extend disparate impact analysis to Unruh Act claims. (11c) We are aware that the Fair Employment and Housing Commission has expressed a different view. In Department of Fair Employment and Housing v. Merribrook Apartments (1988) FEHC Dec. No. 88-19, the commission ruled that an occupancy standard limiting two bedroom apartments to two occupants constituted intentional discrimination based on age in violation of the Government Code section 12948, which incorporates the Unruh Act. In the alternative, the commission found that the standard resulted in a proscribed disparate impact under the Act and the FEHA. One member of the five-person commission concurred in the decision, noting that consideration of disparate impact was unnecessary and therefore of no value as precedent. The commission's decision, like plaintiffs' argument, is based on federal decisions under titles VII and VIII of the Civil Rights Act that are confined to employment and housing discrimination based on specified categories of race, sex, religion, etc. It does not analyze the language or history of the Unruh Act, nor does it offer any reasoning or authority in the Act, as opposed to the FEHA or titles VII and VIII, which incorporate a disparate impact test. Insofar as the commission's statements are applicable to the Act, they represent an erroneous interpretation which we are not bound to follow. ( Dyna-Med, Inc. v. Fair Employment & Housing Com., supra, 43 Cal.3d at p. 1396 [[A]n erroneous administrative construction does not govern the interpretation of a statute, even though the statute was subsequently reenacted without change.]; see also Hutchinson v. Workers' Comp. Appeals Bd. (1989) 209 Cal. App.3d 372, 379 [257 Cal. Rptr. 240].) In summary, we hold that a plaintiff seeking to establish a case under the Unruh Act must plead and prove intentional discrimination in public accommodations in violation of the terms of the Act. A disparate impact analysis or test does not apply to Unruh Act claims. In so holding, we do not preclude the admission of relevant evidence of disparate impact in Unruh Act cases on proper foundation and subject to the general rules of evidence. Because such evidence may be probative of intentional discrimination in some cases, a blanket rule of exclusion cannot be justified. In addition, we express no view as to whether a disparate or adverse impact test applies to housing, employment, or other discrimination claims under the FEHA or any other provision of law.