Overruling Metoyer v. Chassman (9th Cir. 2007) 504 F.3d 919 based on intervening US Supreme Court decisions, this opinion holds that a plaintiff may state a claim under 42 USC 1981 for denial of equal rights in making or enforcing contracts by showing that race was a factor in the decision not to contract even if not the but-for cause of the failure to enter into a contract. Plaintiff may, therefore, state a claim under section 1981 if the defendant acted from mixed motives, one racial discrimination, the other a legitimate race-neutral business reason.
Ninth Circuit Court of Appeals (Smith, M., J.); November 19, 2018; 908 F.3d 1190