Legal Memorandum: Interference with Contracts

Issue: Does 42 U.S.C. 1981 prohibit the interference with contracts based on ‘racial’ discrimination?

Area of Law: Business Organizations & Contracts, Employee Law
Keywords: Contracts; Interference by private as well as public or governmental action; "Racial" discrimination
Jurisdiction: Federal
Cited Cases: 842 F.2d 291; 945 F. Supp. 30; 660 F.2d 1217; 984 F.2d 1467; 784 F.2d 505; 467 F. Supp. 103; 408 F. Supp. 916; 856 F.2d 1054; 593 F.2d 968; 430 F. Supp. 186; 782 F. Supp. 712; 163 F.3d 598; 737 F. Supp. 1243; 541 F. Supp. 735; 579 F. Supp. 1183; 672 F. Supp. 987; 988 F.2d 275; 427 U.S. 160; 967 F. Supp. 472; 960 F. Supp. 966; 481 U.S. 615; 481 U.S. 604; 334 U.S. 410; 392 U.S. 409; 421 U.S. 454; 417 U.S. 273; 539 F. Supp. 1156
Cited Statutes: 42 U.S.C. § 1981(a), § 1981(b), § 1981(c)
Date: 00/01/2001

Section 1981 provides that “[a]ll persons within the jurisdiction of the United States shall have the same right . . . to make and enforce contracts . . . and to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens.”  42 U.S.C. § 1981(a) (West 2000).  “Make and enforce contracts” is defined by this equal rights statute to include Athe making, performance, modification, and termination of contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the contractual relationship.”  Id. § 1981(b).     Section 1981 protects against impairment of contracts by private as well as public or governmental action.  Id. § 1981(c); Runyon v. McCrary, 427 U.S. 160 (1976); see also Johnson v. Railway Express Agency, 421 U.S. 454, 459-60 (1975) (private action); Jones v. Alfred H. Mayer Co., 392 U.S. 409 (1968) (same); Takahashi v. Fish & Game Comm’n, 334 U.S. 410, 419-20 (1948) (state action).  See, e.g., Ferrill v. The Parker Group, Inc., 967 F. Supp. 472 (N.D. Ala. 1997), aff’d, 168 F.3d 468 (11th Cir. 1999); Cooper v. Paychex, Inc., 960 F. Supp. 966 (E.D. Va. 1997), aff’d, 163 F.3d 598 (4th Cir. 1998).  More specifically, it applies in cases involving the employment of doctors.  See, e.g., Zaklama v. Mount Sinai Med. Ctr., 842 F.2d 291 (11th Cir. 1988) (hospital that employed doctors whose […]

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