Nuziard v. Minority Business Development Agency

CourtDistrict Court, N.D. Texas
DecidedJune 5, 2023
Docket4:23-cv-00278
StatusUnknown

This text of Nuziard v. Minority Business Development Agency (Nuziard v. Minority Business Development Agency) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nuziard v. Minority Business Development Agency, (N.D. Tex. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION

JEFFREY NUZIARD ET AL.,

Plaintiffs,

v. No. 4:23-CV-0278-P

MINORITY BUSINESS DEVELOPMENT AGENCY ET AL.,

Defendants. ORDER AND OPINION

The Constitution demands equal treatment under the law. Any racial classification subjecting a person to unequal treatment is subject to strict scrutiny. To withstand such scrutiny, the government must show that the racial classification is narrowly tailored to a compelling government interest. In this case, the Minority Business Development Agency’s business center program provides services to certain races and ethnicities but not to others. Because the Government has not shown that doing so is narrowly tailored to a compelling government interest, it is preliminary enjoined from providing unequal treatment to Plaintiffs. BACKGROUND A. Minority Business Development Agency In November 2021, President Biden signed into law the Infrastructure Act, creating the Minority Business Development Agency (“MBDA”). See 15 U.S.C. 9502(a). The Act directs the MBDA to establish a Business Center Program (“the Program”). § 9598. Under the Program, the MBDA must provide federal assistance to eligible entities to operate its business centers. § 9523. These centers offer technical assistance, business development services, and specialty services to only minority business enterprises. Id. To qualify as a “minority business enterprise,” a “socially or economically disadvantaged individual” must manage the business’s operations and own at least 51% of it. § 9501(9)(A). An individual is presumed to be a “socially or economically disadvantaged individual” if they are Black, African American, Hispanic, Latino, American Indian, Alaska Native, Asian, Native Hawaiian, Pacific Islander, Puerto-Rican, Eskimo, Hasidic Jew, Asian Indian, or a Spanish-speaking American. § 9501(15). But any other race or ethnicity is not considered “socially or economically disadvantaged” and thus ineligible for the center’s services. Id. B. Plaintiffs and this Lawsuit Plaintiffs are three small business owners who seek the business center’s services to grow their businesses. But due to their race and ethnicity, they are ineligible for those services. As a result, they contend that the Program’s race-and-ethnicity requirement violates the Fifth Amendment’s equal-protection guarantee and seek to enjoin the use of that requirement. 1. Dr. Nuziard Dr. Jeffrey Nuziard is a veteran who owns and operates his own business—Sexual Wellness Centers of Texas. He has sought federal assistance for his business before but was denied. This time he sought assistance from the MBDA because it offers grants, training, contracts, financial sourcing assistance, business consulting, and other business resources. But after visiting the MBDA’s Dallas/Fort Worth Center’s website, he learned that he is ineligible for assistance because he is white. Nuziard’s business, however, meets all other requirements for the Center’s services. 2. Matthew Piper Matthew Piper owns and operates his own business—Piper Architects—in Wisconsin. To help benefit his business, he sought assistance from the Wisconsin MBDA Business Center. Piper, however, learned that—despite growing up in extreme financial property—the Center does not consider him “socially or economically” disadvantaged because he is white. So he is also ineligible for the Center’s services. 3. Christian Bruckner Christian Bruckner is a Romanian immigrant who operates his own business—Project Management Corporation—in Florida. Bruckner seeks support to strengthen his business and is interested in the MBDA’s services for its assistance and resources in contracting opportunities. So he visited the Orlando MBDA Business Center website and chose the “access to contracts” option. This led him to the intake form. While completing the form, he noticed the “Ethnicity” question but didn’t find an option for his ethnicity. So he contacted the Center to ask about it. In response, he was informed that the Center would not help his business due to his race and ethnicity. LEGAL STANDARD A preliminary injunction is an “extraordinary remedy” and will be granted only if the movants carry their burden on four requirements. Nichols v. Alcatel USA, Inc., 532 F.3d 364, 372 (5th Cir. 2008). The movants must show: “(1) a substantial likelihood of success on the merits; (2) a substantial threat of irreparable injury; (3) the threatened injury to the movant outweighs the threatened harm to the party sought to be enjoined; and (4) granting the injunctive relief will not disserve the public interest.” City of Dall. v. Delta Air lines, Inc., 847 F.3d 279, 285 (5th Cir. 2017) (cleaned up). “The decision to grant or deny a preliminary injunction is discretionary with the district court.” Miss. Power & Light Co. v. United Gas Pipe Line Co., 760 F.2d 618, 621 (5th Cir. 1985). ANALYSIS A. Likelihood of Success on the Merits Plaintiffs contend they are likely to succeed on the merits of their equal protection claims. But Defendants disagree and contend that Plaintiffs (1) lack standing and (2) fail to show a substantial likelihood of success on those claims. The Court addresses both arguments in turn. 1. Standing For the Court to reach the merits, Plaintiffs must first establish the Court’s jurisdiction. See Lujan v. Defs. of Wildlife, 504 U.S. 555, 561 (1992). Article III of the Constitution limits federal-court jurisdiction to “cases” and “controversies.” U.S. CONST. art. III, § 2. To satisfy this requirement, a plaintiff must establish that he has standing—a “personal stake” in the lawsuit. Davis v. Fed. Election Comm’n, 554 U.S. 724, 732–33 (2008). Standing has three requirements.1 Lujan, 504 U.S. at 560. First, there must be a concrete injury-in-fact that is not conjectural or hypothetical. Whitmore v. Arkansas, 495 U.S. 149, 149 (1990). Second, there must be causation—a fairly traceable connection between a plaintiff’s injury and the complained-of conduct of the defendant. Simon v. E. Ky. Welfare Rts. Org., 426 U.S. 26, 41–42 (1976). Third, there must be redressability—a likelihood that the requested relief will redress the alleged injury. Lujan, 504 U.S. at 562. “[T]he presence of one party with standing is sufficient to satisfy Article III’s case-or-controversy requirement.” Rumsfeld v. F. for Acad.

1 The Supreme Court’s standing precedent is like a game of telephone. The first whisper was the text—“case or controversy.” This whisper was then interpreted. See Muskrat v. United States, 219 U.S. 346, 356 (1911) (“A ‘case’ was defined by Mr. Chief Justice Marshall as early as . . . Marbury v. Madison to be a suit instituted according to the regular course of judicial procedure.”); Kundolf v. Thalheimer, 12 N.Y. 593, 596 (1855) (“The primary meaning of the word case, according to lexicographers, is cause.”). But through subtle changes and interpretations over time, those whispers began to bear little resemblance to the first and were eventually distilled into three requirements. See Lujan, 504 U.S. at 560–61 (establishing three requirements for standing: (1) injury in fact, (2) causation, and (3) redressability). As a result, modern standing case law is based on recent whispers rather than the first—the text.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Walker v. City of Mesquite
169 F.3d 973 (Fifth Circuit, 1999)
Davis v. Tarrant County, Tex.
565 F.3d 214 (Fifth Circuit, 2009)
Muskrat v. United States
219 U.S. 346 (Supreme Court, 1911)
Bolling v. Sharpe
347 U.S. 497 (Supreme Court, 1954)
Turner v. Fouche
396 U.S. 346 (Supreme Court, 1970)
Weinberger v. Wiesenfeld
420 U.S. 636 (Supreme Court, 1975)
Elrod v. Burns
427 U.S. 347 (Supreme Court, 1976)
Clements v. Fashing
457 U.S. 957 (Supreme Court, 1982)
City of Richmond v. J. A. Croson Co.
488 U.S. 469 (Supreme Court, 1989)
Whitmore Ex Rel. Simmons v. Arkansas
495 U.S. 149 (Supreme Court, 1990)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Bennett v. Spear
520 U.S. 154 (Supreme Court, 1997)
Gratz v. Bollinger
539 U.S. 244 (Supreme Court, 2003)
Grutter v. Bollinger
539 U.S. 306 (Supreme Court, 2003)
Johnson v. California
543 U.S. 499 (Supreme Court, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
Nuziard v. Minority Business Development Agency, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nuziard-v-minority-business-development-agency-txnd-2023.