FCS Advisors, LLC v. Missouri — 929 F.3d 618 (2019) · United States Court of Appeals for the Eighth Circuit · 2019

United States Court of Appeals for the Eighth Circuit · 2019-07-09

42usc1981: author: Flash2 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md)

Original case on neochart.com

Case and law context

42 U.S.C. § 1981

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; claim:

Uncertainty

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.

Element own-contract: 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: 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.

Element racial-intent: 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.

Misfit

None recorded

B · Case × element grid

Top-level elements follow claim order in panels of up to six elements. Case rows repeat across panels. Every recorded block retains its holding and basis; multiple blocks are not merged into a case-level verdict. ✓ satisfied · ✗ not satisfied · ○ not reached · · not addressed. Muted blocks are not counted. Sub-element evidence remains on case and element pages.

Elements 1–6 of 15

42 U.S.C. § 1981
CasePersons protected by equal contractual rightsPlaintiff has rights in an existing or proposed contractFormation performance termination or contractual benefitsJudicial intentional-race-discrimination requirementJudicial but-for causation of contractual injuryNongovernmental impairment
FCS Advisors, LLC v. Missouri — 929 F.3d 618 (2019) · United States Court of Appeals for the Eighth Circuit · 2019 (42usc1981: author: Flash2 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))· not addressed· not addressed· not addressed· not addressed

Elements 7–12 of 15

42 U.S.C. § 1981
CaseJudicial section 1983 remedial route for state-law impairmentOpposition to racial impairment of contract rightsJudicial defendant-knowledge requirement for retaliationJudicial material-adversity requirement for retaliationJudicial causation requirement for retaliatory injuryContract and retaliation scope with noncontract clauses identified
FCS Advisors, LLC v. Missouri — 929 F.3d 618 (2019) · United States Court of Appeals for the Eighth Circuit · 2019 (42usc1981: author: Flash2 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))· not addressed· not addressed· not addressed· not addressed· not addressed· not addressed

Elements 13–15 of 15

42 U.S.C. § 1981
CaseJudicial hostile-environment threshold and attributionClaim-specific limitations and accrualCompensatory equitable punitive and fee remedies
FCS Advisors, LLC v. Missouri — 929 F.3d 618 (2019) · United States Court of Appeals for the Eighth Circuit · 2019 (42usc1981: author: Flash2 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))· not addressed· not addressed· not addressed

Instances and excluded annotation blocks

Annotation blocks, including explicitly excluded context
CaseElementHolding and scopePatternExact source quotations
FCS Advisors, LLC v. Missouri — 929 F.3d 618 (2019) · United States Court of Appeals for the Eighth Circuit · 2019 — not · pleaded (42usc1981: author: Flash2 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))Plaintiff has rights in an existing or proposed contractnot
Counted merits instance
applied / merits

basis: pleaded

lender-suing-over-termination-of-its-borrowers-state-contract
Missouri hired EngagePoint, a minority-owned information-technology company, to redesign the software for its health-benefits programs.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [433:568] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Brevet alleges that Nelson's decision to terminate Missouri's contract with EngagePoint was motivated by racial animosity toward the company's managers.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [5622:5774] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

The first is that Brevet has not "identif[ied] an impaired 'contractual relationship' under which [it ] ha[d] rights."
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [5925:6043] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

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.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [6140:6346] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

FCS Advisors, LLC v. Missouri — 929 F.3d 618 (2019) · United States Court of Appeals for the Eighth Circuit · 2019 — not · pleaded (42usc1981: author: Flash2 · QA: FIX (Fable, neov2/cases/TRIAGE-Flash.md))Judicial intentional-race-discrimination requirementnot
Counted merits instance
applied / merits

basis: pleaded

lender-not-itself-target-of-animus-aimed-at-borrowers-management
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.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [2112:2301] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

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."
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [7603:7865] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: fact; polarity: supports; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

The allegation is also implausible, particularly given that Brevet's complaint identifies independent non-discriminatory reasons for Nelson's actions.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [7984:8134] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: fact; polarity: cuts-against; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

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.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [6818:7107] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

But this is a conclusory allegation based on a fraud theory that is itself inadequately pleaded.
Source: docroot/ir/caselaw/f3d_929.jsonl#/f3d/929/0618-01; Unicode character offsets [7866:7962] (end exclusive); SHA-256 19413efd8a3765e4ce83a2cf048935b6a8ba51c70bef9f67e2d9af0c64069af1.

Evidence kind: held; polarity: not recorded; absent flag: 0; quoted-rule flag: 0 (1 = tagged; 0 = not tagged)

Court interpretations recorded from this case