US Supreme Court to rule on housing discrimination law
Judges will consider whether people suing over racial discrimination need to prove intent
The United States Supreme Court agreed to decide whether people suing for housing discrimination must prove they were victims of intentional bias, in a case that may give long-sought protection to the lending industry.
The justices said they would hear an appeal from Texas officials sued under the Fair Housing Act over tax credits for low-income building projects.
The question is whether people can sue by showing a practice had a "disparate impact" on racial minorities, or whether they must meet a higher standard by proving intentional bias.
The court will consider jettisoning the disparate-impact theory, which has helped the administration of President Barack Obama get hundreds of millions of dollars in fair-lending settlements with Bank of America Corp, Wells Fargo and other financial companies.
"The far-reaching scope of disparate-impact liability makes this a question of exceptional importance," Texas officials led by attorney general Greg Abbott argued in their appeal.
The court has twice before granted review on the issue, only to have settlements scuttle the case. Obama's administration and civil rights advocates have sought to steer the issue away from the Supreme Court.