Jewish Man Appeals Religious Discrimination Denial in Franchise Case
Jewish man appeals denial of franchise alleging religious discrimination under 42 U.S.C. 1981 to Fifth Circuit.
Why it matters: This case tests whether 42 U.S.C. 1981, originally prohibiting racial discrimination in contracts, can be applied to religious discrimination. The ruling could affect franchise policies and civil rights litigation.
- Domanic, a Jewish man, was denied a Christian Brothers Automotive franchise, which restricts franchises to Christians.
- He sued under 42 U.S.C. 1981, a civil rights law forbidding racial discrimination in contracts, arguing it should cover religious bias.
- Federal district court dismissed the case, ruling 42 U.S.C. 1981 doesn’t prohibit religious discrimination (Order here).
- Domanic appealed to the Fifth Circuit, which will decide on the statute’s scope regarding religion.
- Christian Brothers Automotive operates 250+ franchises exclusively owned by Christians following company policy documented in court filings.
In a notable legal challenge, Domanic v. Christian Brothers Automotive examines whether 42 U.S.C. 1981, a 19th-century civil rights statute prohibiting racial discrimination in contracts, extends protections against religious discrimination.
Domanic, who identifies as Jewish, was denied a franchise opportunity because Christian Brothers Automotive’s policy limits franchise ownership to Christians. He filed suit under 42 U.S.C. § 1981, arguing that the statute should prevent the company from discrimination based on religion in contracting.
The U.S. District Court for the Northern District of Texas dismissed his claim in its order, concluding the law applies solely to racial discrimination. Following dismissal, Domanic appealed to the Fifth Circuit Court of Appeals, which is now tasked with deciding whether the statutory language also protects against religious discrimination in franchise contracts.
Legal experts, including civil rights attorneys interviewed by Law360 and Reuters, note that a ruling favoring Domanic could expand the reach of 42 U.S.C. 1981 beyond its historical confines. This could prompt greater scrutiny of faith-based business policies nationwide.
Christian Brothers Automotive currently operates over 250 franchises nationwide, all owned by Christians according to company policy revealed in the filings. The company asserts this exclusive policy is integral to its brand identity and business model.
The Fifth Circuit’s ruling will be closely watched by franchise owners, civil rights advocates, and in-house legal counsel. It has the potential to reshape how religious discrimination claims are litigated under existing civil rights laws.
By the numbers:
- 250+ — Christian Brothers Automotive franchises restricted to Christians
- 42 U.S.C. 1981 — Civil rights statute cited by plaintiff against alleged religious discrimination
- Date of district court dismissal — Mid-2023
Yes, but: While 42 U.S.C. 1981 clearly prohibits racial discrimination, courts have traditionally held it does not cover religious discrimination, which is instead addressed under statutes like the Civil Rights Act of 1964. Expanding 1981’s application could face legal and legislative challenges.
What's next: The Fifth Circuit is expected to hear oral arguments on the appeal in late 2024, with a ruling anticipated within the following months.