Comcast Corp. v. National Assn. of African-American Owned Media
Comcast Corp. v. National Assn. of African-American Owned Media
Opinion
*1013
Few legal principles are better established than the rule requiring a plaintiff to establish causation. In the law of torts, this usually means a plaintiff must first plead and then prove that its injury would not have occurred "but for" the defendant's unlawful conduct. The plaintiffs before us suggest that
I
This case began after negotiations between two media companies failed. African-American entrepreneur Byron Allen owns Entertainment Studios Network (ESN), the operator of seven television networks-Justice Central.TV, Comedy.TV, ES.TV, Pets.TV, Recipe.TV, MyDestination.TV, and Cars.TV. For years, ESN sought to have Comcast, one of the nation's largest cable television conglomerates, carry its channels. But Comcast refused, citing lack of demand for ESN's programming, bandwidth constraints, and its preference for news and sports programming that ESN didn't offer.
With bargaining at an impasse, ESN sued. Seeking billions in damages, the company alleged that Comcast systematically disfavored "100% African American-owned media companies." ESN didn't dispute that, during negotiations, Comcast had offered legitimate business reasons for refusing to carry its channels. But, ESN contended, these reasons were merely pretextual. To help obscure its true discriminatory intentions and win favor with the Federal Communications Commission, ESN asserted, Comcast paid civil rights groups to advocate publicly on its behalf. As relevant here, ESN alleged that Comcast's behavior violated
Much motions practice followed. Comcast sought to dismiss ESN's complaint, and eventually the district court agreed, holding that ESN's pleading failed to state a claim as a matter of law. The district court twice allowed ESN a chance to remedy its complaint's deficiencies by identifying additional facts to support its case. But each time, the court concluded, ESN's efforts fell short of plausibly showing that, but for racial animus, Comcast would have contracted with ESN. After three rounds of pleadings, motions, and dismissals, the district court decided that further amendments would prove futile and entered a final judgment for Comcast.
The Ninth Circuit reversed. As that court saw it, the district court used the wrong causation standard when assessing ESN's pleadings. A § 1981 plaintiff doesn't have to point to facts plausibly showing that racial animus was a "but for" cause of the defendant's conduct. Instead, the Ninth Circuit held, a plaintiff must only plead facts plausibly showing that race played "some role" in the defendant's decisionmaking process.
Other circuits dispute the Ninth Circuit's understanding of § 1981. Like the
*1014
district court in this case, for example, the Seventh Circuit has held that "to be actionable, racial prejudice must be a but-for cause ... of the refusal to transact."
Bachman v. St. Monica's Congregation
,
II
It is "textbook tort law" that a plaintiff seeking redress for a defendant's legal wrong typically must prove but-for causation.
University of Tex. Southwestern Medical Center v. Nassar
,
Normally, too, the essential elements of a claim remain constant through the life of a lawsuit. What a plaintiff must do to satisfy those elements may increase as a case progresses from complaint to trial, but the legal elements themselves do not change. So, to determine what the plaintiff must plausibly allege at the outset of a lawsuit, we usually ask what the plaintiff must prove in the trial at its end. See,
e.g.,
Lujan v. Defenders of Wildlife
,
ESN doesn't seriously dispute these general principles. Instead, it suggests § 1981 creates an exception to one or both of them. At times, ESN seems to argue that a § 1981 plaintiff only bears the burden of showing that race was a "motivating factor" in the defendant's challenged decision, not a but-for cause of its injury. At others, ESN appears to concede that a § 1981 plaintiff does have to prove but-for causation at trial, but contends the rules should be different at the pleading stage. According to this version of ESN's argument, a plaintiff should be able to overcome at least a motion to dismiss if it can allege facts plausibly showing that race was a "motivating factor" in the defendant's decision. ESN admits this arrangement would allow some claims to proceed past the pleading stage that are destined to fail later as a matter of law. Still, the company insists, that is what the statute demands.
A
We don't doubt that most rules bear their exceptions. But, taken collectively, clues from the statute's text, its history, and our precedent persuade us that § 1981 follows the general rule. Here, a plaintiff bears the burden of showing that race was a but-for cause of its injury. And, while the materials the plaintiff can rely on to show causation may change as a *1015 lawsuit progresses from filing to judgment, the burden itself remains constant.
Congress passed the Civil Rights Act of 1866 in the aftermath of the Civil War to vindicate the rights of former slaves. Section 1 of that statute included the language found codified today in § 1981(a), promising that "[a]ll persons ... shall have the same right ... to make and enforce contracts, to sue, be parties, [and] give evidence ... as is enjoyed by white citizens."
While the statute's text does not expressly discuss causation, it is suggestive. The guarantee that each person is entitled to the "same right ... as is enjoyed by white citizens" directs our attention to the counterfactual-what would have happened if the plaintiff had been white? This focus fits naturally with the ordinary rule that a plaintiff must prove but-for causation. If the defendant would have responded the same way to the plaintiff even if he had been white, an ordinary speaker of English would say that the plaintiff received the "same" legally protected right as a white person. Conversely, if the defendant would have responded differently but for the plaintiff 's race, it follows that the plaintiff has not received the same right as a white person. Nor does anything in the statute signal that this test should change its stripes (only) in the face of a motion to dismiss.
The larger structure and history of the Civil Rights Act of 1866 provide further clues. Nothing in the Act specifically authorizes private lawsuits to enforce the right to contract. Instead, this Court created a judicially implied private right of action, definitively doing so for the first time in 1975. See
Johnson v. Railway Express Agency, Inc.
,
That rule supplies useful guidance here. Though Congress did not adopt a private enforcement mechanism for violations of § 1981, it did establish criminal sanctions in a neighboring section. That provision permitted the prosecution of anyone who "depriv[es]" a person of "any right" protected by the substantive provisions of the Civil Rights Act of 1866 "on account of " that person's prior "condition of slavery" or "by reason of " that person's "color or race." § 2,
*1016 Nor did anything in the statute hint that a different and more forgiving rule might apply at one particular stage in the litigation. In light of the causation standard Congress specified for the cause of action it expressly endorsed, it would be more than a little incongruous for us to employ the laxer rules ESN proposes for this Court's judicially implied cause of action.
Other provisions of the 1866 statute offer further guidance. Not only do we generally presume that Congress legislates against the backdrop of the common law.
Nassar
,
This Court's precedents confirm all that the statute's language and history indicate. When it first inferred a private cause of action under § 1981, this Court described it as "afford[ing] a federal remedy against discrimination ...
on the basis of
race," language (again) strongly suggestive of a but-for causation standard.
Johnson
, 421 U.S. at 459-460,
This Court's treatment of a neighboring provision, § 1982, supplies a final telling piece of evidence. Because § 1982 was also first enacted as part of the Civil Rights Act of 1866 and uses nearly identical language as § 1981, the Court's "precedents have ... construed §§ 1981 and 1982 similarly."
CBOCS West, Inc. v. Humphries
,
B
What does ESN offer in reply? The company asks us to draw on, and then innovate with, the "motivating factor" causation test found in Title VII of the Civil Rights Act of 1964. But a critical examination of Title VII's history reveals more than a few reasons to be wary of any invitation to import its motivating factor test into § 1981.
This Court first adopted Title VII's motivating factor test in
Price Waterhouse v. Hopkins
,
But this arrangement didn't last long. Congress soon displaced
Price Waterhouse
in favor of its own version of the motivating factor test. In the Civil Rights Act of 1991, Congress provided that a Title VII plaintiff who shows that discrimination was even a motivating factor in the defendant's challenged employment decision is entitled to declaratory and injunctive relief. § 107,
While this is all well and good for understanding Title VII, it's hard to see what any of it might tell us about § 1981. Title VII was enacted in 1964; this Court recognized its motivating factor test in 1989; and Congress replaced that rule with its own version two years later. Meanwhile, § 1981 dates back to 1866 and has never said a word about motivating factors. So we have two statutes with two distinct histories, and not a shred of evidence that Congress meant them to incorporate the same causation standard. Worse yet, ESN's fallback position-that we should borrow the motivating factor concept only at the pleadings stage-is foreign even to Title VII practice. To accept ESN's invitation to consult, tinker with, and then engraft a test from a modern statute onto an old one would thus require more than a little judicial adventurism, and look a good deal more like amending a law than interpreting one.
What's more, it's not as if Congress forgot about § 1981 when it adopted the Civil Rights Act of 1991. At the same time that it added the motivating factor test to Title VII, Congress
also
amended § 1981. See Civil Rights Act of 1991, § 101,
Still, ESN tries to salvage something from the 1991 law. It reminds us that one of the amendments to § 1981 defined the term "make and enforce contracts" to include "making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship."
Comcast and the government disagree. As they see it, the Civil Rights Act of 1866 unambiguously protected only outcomes-the right to contract, sue, be a party, and give evidence. When Congress sought to define some of these terms in 1991, it merely repeated one word from the original 1866 Act (make) in a different form (making). No reasonable reader, Comcast and the government contend, would think that the addition of the present participle form of a verb already in the statute carries such a radically different meaning and so extends § 1981 liability in the new directions ESN suggests. And, we are told, the statute's original and continuing focus on contractual outcomes (not processes) is more consistent with the traditional but-for test of causation.
This debate, we think, misses the point. Of course, Congress could write an employment discrimination statute to protect only outcomes or to provide broader protection. But, for our purposes today, none of this matters. The difficulty with ESN's argument lies in its mistaken premise that a process-oriented right necessarily pairs with a motivating factor causal standard. The inverse argument-that an outcome-oriented right implies a but-for causation standard-is just as flawed. Either causal standard could conceivably apply regardless of the legal right § 1981 protects. We need not and do not take any position on whether § 1981 as amended protects only outcomes or protects processes too, a question not passed on below or raised in the petition for certiorari. Our point is simply that a § 1981 plaintiff first must show that he was deprived of the protected right and then establish causation-and that these two steps are analytically distinct. *
Unable to latch onto either
Price Waterhouse
or the Civil Rights Act of
*1019
1991, ESN is left to cast about for some other hook to support its arguments about § 1981 's operation. In a final effort, it asks us to consider the burden-shifting framework of
McDonnell Douglas Corp. v. Green
,
It is nothing of the kind. Whether or not
McDonnell Douglas
has some useful role to play in § 1981 cases, it does not mention the motivating factor test, let alone endorse its use only at the pleadings stage. Nor can this come as a surprise: This Court didn't introduce the motivating factor test into Title VII practice until years
after
McDonnell Douglas
. For its part,
McDonnell Douglas
sought only to supply a tool for assessing claims, typically at summary judgment, when the plaintiff relies on indirect proof of discrimination. See
III
All the traditional tools of statutory interpretation persuade us that § 1981 follows the usual rules, not any exception. To prevail, a plaintiff must initially plead and ultimately prove that, but for race, it would not have suffered the loss of a legally protected right. We do not, however, pass on whether ESN's operative amended complaint "contain[s] sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face' " under the but-for causation standard.
Iqbal
,
It is so ordered .
Justice GINSBURG, concurring in part and concurring in the judgment.
I join the Court's opinion requiring a plaintiff who sues under
The Court devotes a page and a half to this important issue but declines to resolve it, as it does not bear on the choice of causation standards before us.
Ante
, at 1017 - 1018. I write separately to resist Comcast's attempt to cabin a "sweeping" law designed to "break down
all
discrimination between black men and white men" regarding "basic civil rights."
Jones v. Alfred H. Mayer Co.
,
Under Comcast's view, § 1981 countenances racial discrimination so long as it occurs in advance of the final contract-formation decision. Thus, a lender would not violate § 1981 by requiring prospective borrowers to provide one reference letter if they are white and five if they are black. Nor would an employer violate § 1981 by reimbursing expenses for white interviewees but requiring black applicants to pay their own way. The employer could even "refus[e] to consider applications" from black applicants at all. Brief for United States as Amicus Curiae 21.
That view cannot be squared with the statute. An equal "right ... to make ... contracts," § 1981(a), is an empty promise without equal opportunities to present or receive offers and negotiate over terms. A plaintiff hindered from enjoying those opportunities may be unable effectively to form a contract, and a defendant able to impair those opportunities can avoid contracting without refusing a contract outright. It is implausible that a law "intended to ... secure ... practical freedom,"
Jones
,
Far from confining § 1981 's guarantee to discrete moments, the language of the statute covers the entirety of the contracting process. The statute defines "make and enforce contracts" to "includ[e] the making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship." § 1981(b). That encompassing definition ensures that § 1981 "applies to all phases and incidents of the contractual relationship."
Rivers v. Roadway Express, Inc.
,
Comcast's freeze-frame approach to § 1981 invites the Court to repeat an error
*1021
it has committed before. In 1989, the Court "rea[d] § 1981 not as a general proscription of racial discrimination in all aspects of contract relations, but as limited to" certain narrow "enumerated rights."
Patterson v. McLean Credit Union
,
Congress promptly repudiated that interpretation. In 1991, "with the design to supersede
Patterson
," Congress enacted the expansive definition of "make and enforce contracts" now contained in § 1981(b).
CBOCS West, Inc. v. Humphries
,
The complaint before us contains allegations of racial harassment during contract formation. In their negotiations, Entertainment Studios alleges, Comcast required of Entertainment Studios a series of tasks that served no purpose and on which Entertainment Studios "waste[d] hundreds of thousands of dollars." App. to Pet. for Cert. 49a-50a. The Court holds today that Entertainment Studios must plead and prove that race was the but-for cause of its injury-in other words, that Comcast would have acted differently if Entertainment Studios were not African-American owned. But if race indeed accounts for Comcast's conduct, Comcast should not escape liability for injuries inflicted during the contract-formation process. The Court has reserved that issue for consideration on remand, enabling me to join its opinion.
I have previously explained that a strict but-for causation standard is ill suited to discrimination cases and inconsistent with tort principles.
University of Tex. Southwestern Medical Center v. Nassar
,
The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See
United States v. Detroit Timber & Lumber Co.
,
The concurrence proceeds to offer a view on the nature of the right, while correctly noting that the Court reserves the question for another day. We reserve the question because "we are a court of review, not of first view,"
Cutter v. Wilkinson
,
Reference
- Full Case Name
- COMCAST CORPORATION, Petitioner v. NATIONAL ASSOCIATION OF AFRICAN AMERICAN-OWNED MEDIA, Et Al.
- Cited By
- 988 cases
- Status
- Published