WASHINGTON, D.C. – Yesterday, America First Legal (AFL), Mitchell Law PLLC, and Ashbrook Bryne Kresge LLC continued fighting for our client by filing a brief in the U.S. Court of Appeals for the Sixth Circuit regarding alleged racial discrimination in the “Driving Small Business Forward” grant program by Progressive Preferred Insurance Company, Progressive Casualty Insurance Company, and Circular Board LLC.
Progressive Insurance offered $25,000 grants to “ten black-owned small businesses to use toward purchasing a commercial vehicle.” AFL’s client met every requirement listed for this funding but was barred from applying because he was not black. Progressive only gave these contractual benefits to black-owned businesses, violating 42 U.S.C. § 1981, which outlaws racial discrimination in making all contracts. Progressive conspired and partnered with Circular Board LLC, which operates Hello Alice, an online resource platform, to administer these discriminatory grants.
Progressive announced that “[a]pplicants must meet all of the below criteria to be eligible for this opportunity:”
- Be a for-profit business that is “majority (51%+) owned and operated by a Black-identifying entrepreneur(s)”;
- Have 10 or fewer employees and less than $5 million in annual gross revenue;
- Have a demonstrated need for a qualifying commercial vehicle and a clear plan for growth as a result of this vehicle purchase; and
- Not be an independent contractor whose primary business is for a rideshare service such as Uber or Lyft, or third-party food delivery such as UberEats, DoorDash, PostMates, Grubhub, Instacart, etc.
AFL’s client fulfilled every eligibility requirement except being a black business owner.
The district court held that AFL’s client could not prove they would have been selected for the Progressive grant. AFL’s brief argues the plaintiff was unlawfully discriminated against because they were denied even the ability to compete for the grant money—in itself a contract with Progressive. Receiving the grant money is a secondary contract, which AFL’s client was never even considered for based on his race.
Thus, AFL calls for the district court to reverse its decision and remand the case to correct Progressives’ unlawful racial discrimination and apply only a colorblind, race-neutral criterion in all contracts.
Statement from Gene Hamilton, America First Legal Executive Director:
“We are committed to fighting for our client and every American to be free from racial discrimination of all types. Sadly, many in corporate America have lost their way and decided to adopt facially illegal contracting policies—picking winners and losers based on their race. We are confident that we will vindicate our client’s rights,“ said Gene Hamilton.
Read the brief here.
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Photo credit: Adobe stock images / David
