Whether § 1981 supplies an independent damages remedy against state or local governmental entities that is broader than § 1983 and permits respondeat superior liability.
Holding
No. When a state actor is alleged to have violated rights protected by § 1981, § 1983 provides the exclusive federal damages remedy; therefore, a municipality cannot be held liable solely because its employee committed the violation.
Reasoning
The Civil Rights Act of 1866, from which § 1981 derives, declared substantive equal-rights protections but did not expressly create a civil damages action against state actors. Its enforcement provisions chiefly created criminal penalties for the individual acting under color of law and mechanisms for federal intervention when state courts denied protected rights. Nothing in its text or history showed that Congress imposed vicarious damages liability on municipalities.
By contrast, the Civil Rights Act of 1871 expressly created a civil action against a person acting under color of state law and opened the federal courts to those claims. The history showed that Congress understood this enactment, now § 1983, to furnish the civil remedy for state officials’ violations of the rights secured by the 1866 Act.
The Court’s prior decision in Monell held that municipalities are not liable under § 1983 on a respondeat superior theory. That conclusion rested on the statutory text and on Reconstruction-era concerns about imposing federal obligations and financial liability on local governments for wrongs committed by others. The rejection of the Sherman Amendment, which would have imposed a form of municipal vicarious liability, reinforced that Congress did not silently create such liability.
Although the Court had implied a damages action under § 1981 against private parties, state action presented a different setting because Congress had expressly supplied a remedy in § 1983. Courts should not create a broader implied remedy where Congress has established an express remedial scheme governing the same state-actor misconduct. Section 1988 likewise did not authorize borrowing state respondeat superior principles when doing so would conflict with the federal limits embodied in § 1983.