Posted On: October 31, 2007 by Mary Frances Prevost

RACE-BASED SURVEILLANCE OF SHOPPERS IS ACTIONABLE UNDER 42 U.S.C. SEC. 1981

The Eighth Circuit has held that a department store's race-based surveillance of African American shoppers was sufficient to support a claim of interference with the ability to contract in a 42 U.S.C. sec. 1981 descrimination suit against the store.

Although the United States Supreme Court has never adressed the applicability of sec. 1981 in the specific context of retail transactions, the court observed, it has recognized the act's prohibition against racial discrimination in all phases and incidents of the contractual relationship.

To establish a prima facie case of discrimination under sec. 1981, plaintiffs in the Eighth Circuit must show: 1) they are members of a protected class; 2) defendants had discriminatory intent; 3) plaintiffs engaged in activity protected by sec. 1981, and; 4) defendants interfered with that activity.

Gregory v. Dillard's, inc., ___F.3d____, 2007 WL 2067852 (8th Cir. 2007)