Two Major U.S. Supreme Court Victories for Small Businesses

Date: June 30, 2021

The U.S. Supreme Court last week decided two cases in favor of small businesses

Every day, the NFIB Small Business Legal Center (SBLC) fights for small business rights in America’s courtrooms. In late June, the U.S. Supreme Court ruled in favor of two different plaintiffs that the SBLC had filed amicus briefs supporting.

Cedar Point Nursery v. Hassid

On June 23, the U.S. Supreme Court held that small businesses have the right to exclude union organizers from entering their property without permission from the owner.

The case concerned a California regulation that allowed union organizers to enter agricultural businesses during specified times – without compensating the owner. The plaintiff argued that this regulation violated their property rights, constituting a physical taking under the Fifth Amendment. NFIB joined the CATO Institute in filing amicus briefs in support of this claim.

“We are pleased to see the Supreme Court once again protect the property rights of America’s small businesses,” said Small Business Legal Center Executive Director Karen Harned. “The Constitution requires that small business owners get compensated when union organizers have access to a business owner’s property and we’re glad to see the U.S. Supreme Court protect this important right and not allow the government to interfere with their daily business operations.”

TransUnion LLC v. Ramirez

On June 25, the U.S. Supreme Court reversed the Ninth Circuit’s decision that individuals can be certified for a class-action lawsuit even when they suffered no actual injury. In doing so, the Supreme Court held that all members of the class must have standing to sue, that is, suffered a “concrete harm.”

NFIB applauds this decision, as we filed an amicus brief arguing that all members of the class must have suffered an actual injury.

“Small businesses suffer greatly from frivolous lawsuits and today’s decision will help small employers avoid being the target of such lawsuits,” said Karen Harned. “This case had the potential to set a dangerous precedent in incentivizing lawyers to turn every dispute into a statutory-damages lawsuit, based on technical statutory violations and without proving the class represented suffered concrete injuries. NFIB is pleased the Supreme Court once again ruled that all plaintiffs need to suffer actual injury to be compensated.”

The SBLC acts as the voice for small businesses in all the nation’s courts, not just the Supreme Court. It is also a legal resource, educating and assisting small business owners about their rights. Learn more here.

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