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cases/42usc1981/f3d-929-618-fcs-advisors-v-missouri.case

Source: cases/42usc1981/f3d-929-618-fcs-advisors-v-missouri.case

Case source: https://www.neochart.com/catalog/cases/f3d/volume_929/0618_01/index.html

Verbatim annotated passages

The first is that Brevet has not "identif[ied] an impaired 'contractual relationship' under which [it ] ha[d] rights."
The software contract was between Missouri and EngagePoint, not Brevet, and section 1981 does not allow Brevet to sue on EngagePoint's behalf, even if it too had a contractual relationship with the company.
To the extent Brevet is relying on its own agreement with EngagePoint, its section 1981 claim fails for another reason. Brevet was not "the direct target of discrimination," nor did it experience discrimination based on its "relationship to, association with, or advocacy" for EngagePoint.
But this is a conclusory allegation based on a fraud theory that is itself inadequately pleaded.

Exact source text

casedsl 1.2
# author: Flash2 (gemini-3.8-flash-high)
# triaged-by: Fable (2026-11-10)

case /f3d/929/0618-01
  name    FCS Advisors, LLC v. Missouri
  cite    929 F.3d 618 (2019)
  court   United States Court of Appeals for the Eighth Circuit
  date    2019-07-09
  url     catalog/cases/f3d/volume_929/0618_01/index.html
  source  ir/caselaw/f3d_929.jsonl sha1=040f6192523eebf09347772a5986d6b33ad46132 chars=10520

opinion maj : majority by Stras @0..10520 controlling
? other: the defendants are the State of Missouri and a state official, but the opinion never discusses the state-remedial-route (Section 1983) or immunity for the Section 1981 claim; no block is recorded for it.

law 42usc1981
  role    applied
  posture civil; Section 1981 claim by a lender to a minority-owned prime contractor whose state contract was terminated; Rule 12(b)(6) dismissal affirmed by CA8
  result  claimant-lost

element own-contract : not-satisfied [pleaded]
  route   _whole
  pattern lender-suing-over-termination-of-its-borrowers-state-contract
  fact @433..568 [cuts-against] | Missouri hired EngagePoint, a minority-owned information-technology company, to redesign the software for its health-benefits programs.
  fact @5622..5774 [cuts-against] | Brevet alleges that Nelson's decision to terminate Missouri's contract with EngagePoint was motivated by racial animosity toward the company's managers.
  fact @896..1072 [neutral] | Acting on this advice, EngagePoint turned to Brevet Direct Lending - Short Duration Fund, L.P. and its administrative agent, FCS Advisors, LLC (together, "Brevet"), for a loan.
  held @5925..6043 | The first is that Brevet has not "identif[ied] an impaired 'contractual relationship' under which [it ] ha[d] rights."
  held @6140..6346 | The software contract was between Missouri and EngagePoint, not Brevet, and section 1981 does not allow Brevet to sue on EngagePoint's behalf, even if it too had a contractual relationship with the company.
  ? route: no menu route for a derivative claim through another's contract (lender, shareholder, creditor of the contracting party; Domino's Pizza); employment-relationship lists these as out of scope.

element racial-intent : not-satisfied [pleaded]
  route   _whole
  pattern lender-not-itself-target-of-animus-aimed-at-borrowers-management
  fact @2112..2301 [cuts-against] | The second was that Nelson's alleged racial animus toward EngagePoint's "Asian-Indian American management" led to the company's termination, which violated federal anti-discrimination laws.
  fact @7603..7865 [supports] | To be sure, the complaint alleges that "Nelson also discriminated against [Brevet] directly by making fraudulent and/or false or materially misleading representations to it because of its association and work with EngagePoint's Asian-Indian American management."
  fact @7984..8134 [cuts-against] | The allegation is also implausible, particularly given that Brevet's complaint identifies independent non-discriminatory reasons for Nelson's actions.
  held @6818..7107 | To the extent Brevet is relying on its own agreement with EngagePoint, its section 1981 claim fails for another reason. Brevet was not "the direct target of discrimination," nor did it experience discrimination based on its "relationship to, association with, or advocacy" for EngagePoint.
  held @7866..7962 | But this is a conclusory allegation based on a fraud theory that is itself inadequately pleaded.
  ? route: the ruling is that the plaintiff was not personally the target of the discrimination (Bilello / Combs), partly on pleading-plausibility grounds; no menu route for "plaintiff not the target", so _whole.
  ? scope: this is the court's second ground, addressed to the plaintiff's own loan agreement rather than the state contract; recorded as merits rather than alternative because it disposes of a different contractual theory.