City of Richmond v. J.A. Croson Co., 488 U.S. 469, 109 S. Ct. 706, 102 L. Ed. 2d 854 (1989)

Facts

Bidder brought suit challenging city's plan requiring prime contractors awarded city construction contracts to subcontract at least 30% of the dollar amount of each contract to one or more “Minority Business Enterprises.”

The U.S. District Court ruled in favor of city. Bidder appealed.

The Fourth Circuit affirmed. 

Certiorari was granted.

The Supreme Court remanded case for further consideration.

On remand, the Court of Appeals struck down the set-aside program, and probable jurisdiction was noted. 

Holding

The Supreme Court held that:

1. city failed to demonstrate compelling governmental interest justifying the plan, and
2. plan was not narrowly tailored to remedy effects of prior discrimination.

Affirmed.