High Court Splits On Loan Guarantor Discrimination Claims

Law360, New York (March 22, 2016, 10:33 AM EDT) -- An evenly divided U.S. Supreme Court on Tuesday said that "spousal guarantors" could not bring gender discrimination claims against creditors under the Equal Credit Opportunity Act, affirming lower court decisions and rejecting a 30-year-old expansion of the law.

The high court's 4-4 decision, the first since the death of Justice Antonin Scalia last month, upheld an Eighth Circuit opinion that backed the dismissal of a lawsuit filed by two Missouri women, Valerie Hawkins and Janice Patterson, who were seeking to stop a local bank from pursuing them over more than $2 million in loans that their husbands took out to fund...

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