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Supreme Court Rejects Appeal in Preemption Case

On October 2, the U.S. Supreme Court 2 turned away an appeal of a federal appeals court ruling that said an officer of a national...
October 17, 2006

On October 2, the U.S. Supreme Court 2 turned away an appeal of a federal appeals court ruling that said an officer of a national bank is protected by a state anti-discrimination statute, even though the National Bank Act preempts most other state law.

The case involved Kathy Kroske, who was fired by U.S. Bank Corp. after the bank said she failed to meet assigned goals and quotas. Kroske, 51, later sued the bank in Washington state court, claiming the bank discriminated against her under the Washington Law Against Discrimination. According to Kroske, the bank gave other managers in her region, all of whom were in their 20s and 30s, more flexibility to reach their goals. A federal court had ruled that the National Bank Act, which allows banks to dismiss officers at any time, preempts Washington state claims. But the Supreme Court's action lets stand a subsequent ruling by the U.S. Court of Appeals for the Ninth Circuit that reversed the lower court's decision.