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Keywords

contractbreach of contractstatutediscriminationcorporationcivil rights

contractstatutediscriminationcorporationcivil rights

Related Cases

Precise Aerospace Mfg. Inc. v. MAG Aerospace Indus., LLC, Not Reported in Fed. Supp., 2017 WL 9834348

Facts

PAM, a California corporation, entered into a business relationship with MAG to supply prototype parts for a water-and-waste system after MAG's initial subcontractor failed to meet quality standards. MAG made several oral promises to PAM regarding exclusive supplier status and pricing guarantees, which PAM relied upon to invest significantly in the project. However, MAG later reneged on these promises, leading to PAM's claims of breach of contract and discrimination, particularly highlighting the sexist treatment experienced by PAM's president, Roxanne Abdi, from MAG's personnel.

PAM, a California corporation, entered into a business relationship with MAG to supply prototype parts for a water-and-waste system after MAG's initial subcontractor failed to meet quality standards.

Issue

Did MAG violate the California Unruh Civil Rights Act by discriminating against PAM and its president, Roxanne Abdi, based on sex, and did PAM adequately state a claim under the Unfair Competition Law?

Rule

The California Unruh Civil Rights Act prohibits discrimination in business transactions based on sex, and a claim under the Unfair Competition Law can be based on violations of other statutes.

Analysis

The court analyzed PAM's allegations under the Unruh Act and found that the only supporting factual allegation was a crude statement made by MAG's Vice President, which did not demonstrate that MAG refused to do business with PAM based on Abdi's sex. The court concluded that PAM's claims were largely conclusory and did not establish a plausible claim of discrimination. Consequently, since the UCL claim was contingent on the Unruh Act claim, it was also dismissed.

Conclusion

The court dismissed PAM's claim under the Unruh Civil Rights Act and struck the related UCL claim, concluding that PAM failed to state a valid claim for sex discrimination.

Who won?

MAG prevailed in the case because the court found that PAM did not adequately support its claims of discrimination and thus failed to state a claim under the relevant statutes.

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Keywords

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