In a case that may change the way the insurance industry approaches housing-related "disparate impact" issues, the U.S. Supreme Court granted certiorari in June to the Township of Mount Holly in a fair housing discrimination case—Township of Mount Holly v. Mt. Holly Gardens Citizens in Action, case no. 11-1507, —S.Ct.—, 80 U.S.L.W. 3711, 2013 WL 2922132 (June 17, 2013). The U.S. Court of Appeals for the Third Circuit, reversing the district court's dismissal of the complaint, previously held that the disparate impact doctrine applied to discrimination claims brought under Title VIII of the Civil Rights Act of 1968—the Fair Housing Act (FHA)—and that the plaintiffs made a prima facie case of disparate impact.
The appeal is of particular importance to insurers because, if the Third Circuit decision is sustained, insurers with no intent to discriminate could be found liable for discrimination merely because, under standard insurance pricing practices and procedures approved by regulators, certain minorities and other protected classes may pay higher rates or premiums.
