Southwest Airlines lost a bid to toss out a racial discrimination lawsuit over a program offering free flights to some Hispanic students after a judge said the airline’s offer to provide the plaintiff’s relief did not render the lawsuit moot.
The airline’s ¡Lanzate Travel Award Program, which began in 2004 in partnership with the Hispanic Association of Colleges and Universities, had limited applications to Hispanic students, prompting the American Alliance for Equal Rights to file a lawsuit on behalf of two students, one white and one Asian, in May.
The lawsuit had alleged the program violated the Civil Rights Acts of 1866 and 1964, because it excluded white, black, Asian, and Native American students from applying, and the alliance said it was seeking the program to be open to all races and $0.01 in nominal damages.
Southwest opened the program to all races in August and sent the alliance the one cent in requested damages, along with a letter requesting the group drop the litigation. The alliance returned the payment and declined to dismiss the lawsuit, leading to the airline filing a motion to dismiss the lawsuit, claiming it was now moot.
Judge Sidney Fitzwater of the U.S. District Court for the Northern District of Texas said in a court filing Friday that Southwest’s actions did not make the claims moot, but rather was a “textbook offer to
settle Alliance’s nominal damages claims.”
“Southwest’s unsuccessful tender of one cent to Alliance was plainly an unaccepted offer that could not moot Alliance’s nominal damages claims,” Fitzwater said, adding that “the court has subject matter jurisdiction over” the alliance’s claims against Southwest.
American Alliance for Equal Rights President Edward Blum said that the ruling was a “big win” and paved the way for companies to still face litigation for discrimination, even if they attempt to make the claims moot.
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“This is a big win. Going forward, the Alliance—and every other membership association—will be able to rely on the Court’s opinion whenever a defendant tries to change its illegal programs and avoid judicial scrutiny. This decision is a powerful tool to prevent case-mooting tactics from discriminators nationwide,” Blum said in a statement after the ruling.
A spokesperson for Southwest Airlines told the Washington Examiner it declined to comment on pending litigation.
