Even after African Americans were emanci-
pated from slavery and given equal rights to those
of whites under the Thirteenth, Fourteenth,
and Fifteenth Amendments, they continued
to face discrimination in numerous ways, includ-
ing in the realm of employment. Blacks, for exam-
ple, faced many diffi culties in forming their own
businesses and in being successful bidders in the
awarding of government contracts to perform ser-
vices, such as for construction projects. While laws
were adopted in the 1960s to end discrimination,
such as the Civil Rights Act of 1964, some
contended that the government needed to provide
additional support to help blacks overcome histor-
ical discrimination. Among those developed were
affirmative action and MBEs.
MBE programs were developed at the federal,
state, and local levels during the 1960s. Govern-
ments, acting in their capacity as employers,
would arrange to set aside a certain percentage or
dollar amount of all their contracts to companies
with majority ownership of minorities (MBEs) or
women (WBEs). However, some contended that
these programs were illegal, citing a violation of
the Fourteenth Amendment’s equal protection
clause.
In F
ULLILOVE V. KLUTZNICK, 448 U.S. 448 (1980),
the Supreme Court upheld an MBE program in
the 1977 Public Works Employment Act. Here,
the Court had ruled that a 10 percent set-aside
for MBEs was not unconstitutional; however, the
ruling was a 6-3 decision. Subsequently, several
justices, including Chief Justice Warren Ear l
Burger, departed, and as a result of appoint-
ments by President Ronald Reagan, the Court
shifted right. The Rehnquist Court was less
supportive of affirmative action and MBE pro-
grams and decided to hear the Croson case.
The city of Richmond, in order to overcome
historical discrimination against blacks and to
encourage more minority businesses, enacted a
law requiring that at least 30 percent of the dollar
value of all city-awarded construction contracts
be awarded to businesses owned by minorities.
“Owned by minorities” meant that at least 51 per-
cent of the business had to be controlled by people
of color. The program was not limited to defi n-
ing MBEs as blacks but also included those who
were Spanish-speaking, Asian, Indian, Eskimo, or
Aleut. When the law was adopted, its supporters
noted that while 50 percent of the city’s popula-
tion was African American, less than 1 percent of
the contracts awarded by Richmond in the previ-
ous fi ve years had been awarded to blacks. J. A.
Croson, Inc., was a heating and plumbing contrac-
tor that objected to the MBE set-aside program.
The company challenged it in court, and after it
had prevailed in the lower courts, the Supreme
Court agreed to hear the case.
Writing for a divided majority in a 6-3 opinion,
Justice Sandra Day O’Connor ruled that the
Richmond MBE program violated the Fourteenth
Amendment’s equal protection clause. The basis
of her argument was that it was not narrowly tai-
lored. She fi rst contended that because there was
no documented history of discrimination against
Spanish-speaking, Asian, Indian, Eskimo, or Aleut
individuals, their inclusion in the MBE program
was improper. Second, O’Connor noted that there
was no documentation that supported evidence
of discrimination in the construction industry
in the city. Third, given that Richmond was half
African American and that a majority of its city
council was black, these facts boded against the
idea that individuals of this race were a minor-
ity lacking representation and in need of special
protection. Fourth, the Court also noted that the
MBE program, especially with the 30 percent set-
aside, appeared to be more than a remedial mea-
sure meant to overcome past discrimination. If
the goal of the city was to be remedial, O’Connor
suggested that other race-neutral programs were
available. Finally, Justice O’Connor asserted that
the Richmond program denied some the ability
to compete for contracts based on their race and
therefore, under a strict scrutiny analysis,
such a program was unconstitutional. In concur-
rence, Justice Antonin Gregory Scalia ruled
that race-based programs such as MBEs were
unconstitutional under strict scrutiny.
In dissent, Justice Thurgood Marshall con-
tended that the use of race for remedial purposes
should not be examined under strict scrutiny but
under a more relaxed standard. Moreover, he
126 City of Richmond v. J. A. Croson Company
xviii+446_EofUSConsti-v1.indd 126 3/12/09 3:04:16 PM