May 17, 2022

Volume XII, Number 137

Advertisement
Advertisement

May 16, 2022

Subscribe to Latest Legal News and Analysis

California's Female Director Quota Law Is Now Headed For Trial

California Superior Court Judge Maureen Duffy-Lewis issued her ruling yesterday on the parties' respective motions for summary judgment in Crest v. Padilla (Cal. Super. Ct. Case No. 19STCV27561).  In this case, the plaintiffs are seeking a judgment declaring that any and all expenditures of taxpayer funds to enforce and carry out the provisions of California's female director quota law (SB 826) are illegal.   SB 826 is codified at Sections 301.3 and 2115.5 of the California Corporations Code.   The basis for the plaintiffs' claim is Art. I, Section 31 of the California Constitution which forbids the state from discriminating against, or granting preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in the operation of public employment, public education, or public contracting.

Judge Duffy-Lewis denied both motions on the grounds that there are triable issues of material facts.  While the fundamental question presented by the case appears to be legal, the ruling notes that each side provided with their moving papers "substantial amounts of extrinsic evidence" and that each side disputed facts presented by the other. 

 Whatever the outcome of the trial, there will most likely be an appeal.  In addition, there is a separate challenge to the law pending in the U.S. District Court for the Eastern District of California.  Meland v. Padilla (Case No. No. 2:19-cv-02288-JAM-AC).  As noted in this post, the Ninth Circuit Court of Appeals reversed the District Court's ruling that the plaintiff lacked standing.  Meland v. Weber, 2 F. 4th 838 (9th Cir. 2021).  

© 2010-2022 Allen Matkins Leck Gamble Mallory & Natsis LLP National Law Review, Volume XI, Number 272
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Keith Paul Bishop, Corporate Transactions Lawyer, finance securities attorney, Allen Matkins Law Firm
Partner

Keith Bishop works with privately held and publicly traded companies on federal and state corporate and securities transactions, compliance, and governance matters. He is highly-regarded for his in-depth knowledge of the distinctive corporate and regulatory requirements faced by corporations in the state of California.

While many law firms have a great deal of expertise in federal or Delaware corporate law, Keith’s specific focus on California corporate and securities law is uncommon. A former California state regulator of securities and financial institutions, Keith has decades of...

949-851-5428
Advertisement
Advertisement
Advertisement