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Contracts and Domestic Partners

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In the context of current events, the recent ruling involving San Francisco's landmark "domestic partners" law is an important modification of contract law. In the 1996 first-in-the-nation partners ordinance, the City of San Francisco required that companies doing business with the city offer the same benefits to employees with domestic partners as they do to those in traditional marriages. U.S. District Court Judge Claudia Wilken said the 1996 ordinance was constitutional (San Francisco "domestic partners" law..., 1998).

Judge Wilken's ruling came as the end result of a suit brought by the Air Transport Association which contended that San Francisco's 1996 domestic partners ordinance intruded on federal law, impeded interstate commerce, and violated the U.S. Constitution. On May 13, 1997, soon after the regulations of the ordinance were approved, the Air Transport Association (ATA) filed suit in the United States District Court for the Northern District of California. The lawsuit claimed that the ordinance was in violation of the Employee Retirement Income Security Act (ERISA), the Railway Labor Act, the Airline Deregulation Act, and the Commerce Clause.

Because ERISA preempts state and local laws which "relate to" an employee benefit plan, the ATA contended that the ordinance violated ERISA because it specifically addresses requirements of an employer's benefit plans for its employees. The Commission, however, contended that since

. . .
ntract requires a voluntary agreement which includes two elements, an offer and acceptance. There are of course different types of contracts. A unilateral contract describes a promise for an act which is not binding until performance of the required act has begun. A bilateral contract means a promise for a promise. Both parties are bound once the promises are exchanged. A written contract of course allows a much easier time in proving and enforcing terms. Most contracts can be oral, although some contracts must be in writing. There is also the implied contract arising from the actions of parties and surrounding circumstances. A void contract has no effect and is not legally enforceable. A voidable contract is one in which one of the parties can choose to breach the contract. Lastly the unenforceable contract is a contract that cannot be enforced due to a legal flaw. Application to Business Law Long before Judge Wilken made her ruling, the business community had accepted the broadening of the definition of 'domestic partner' as reality. In reference to contractual agreements, as implied by San Francisco administrative Code 12B, no employer is required to contract with San Francisco, essentially making compliance with
. . .

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Approximate Word count = 1416
Approximate Pages = 6 (250 words per page)

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