Bhandari v. First National Bank of Commerce

Background

This case asks whether a federal civil-rights law (Section 1981) stops private businesses from refusing to make contracts with people because they are noncitizens. A person challenged a private bank’s conduct, and the Fifth Circuit, sitting en banc, held that Section 1981 does not reach private discrimination based on alienage. The petitioner sought Supreme Court review; the Court previously sent the case back for reconsideration in light of a decision saying Section 1981 covers private racial discrimination.

Reasoning

On remand, the Fifth Circuit refused to change its view, saying the prior decision involved private racial discrimination and thus did not control whether Section 1981 covers discrimination against noncitizens. The Supreme Court today denied further review, so the Fifth Circuit’s ruling stays in place. Justice White, joined by Justice O’Connor, wrote a dissent explaining he would have granted review to resolve the question.

Real world impact

Because the Supreme Court refused to take the case, the Fifth Circuit’s conclusion that Section 1981 does not prohibit private alienage discrimination remains law in that circuit. The broader national question—whether noncitizens can use Section 1981 to challenge private contract refusals—remains unresolved by the Court and could vary across different federal appeals courts.

Dissents or concurrances

Justice White argued certiorari should be granted to settle the issue, noting earlier cases showed Section 1981 bars official discrimination against aliens and that other decisions extended Section 1981 to private racial discrimination.