Austin, TX -- In a decision that could dismantle 20 years of affirmative action, a federal appeals court has ruled that the University of Texas should not have given preferred treatment to minorities admitted to its School of Law.

If it stands, the ruling by the 5th U.S. Circuit Court of Appeals in New Orleans could force colleges and universities across the country to discard similar policies used to boost their minority enrollments.

The appeals court's 81-page opinion was cheered by supporters as a victory for color-blind admissions.

The case, Hopwood vs. Texas, stems from a 1992 lawsuit filed by four white students who contended that they were denied admission to UT's law school because of the university's policy favoring the admission of students of color over whites.

The law school's admission policy, based on grade-point averages and standardized test scores. used different criterion for students of color and whites. White students generally needed higher grades and test scores to gain admission.

During a 1994 trial in Austin, law school deans from California, Michigan. Minnesota, and North Carolina testified that their admissions policies were similar to the University of Texas'.

Afterward, U.S. District Judge Sam Sparks of Austin ruled that the four applicants' constitutional rights had been violated, but also decided that affirmative action could continue to remedy past discrimination.

He awarded each of the four students $1 in damages and the right to reapply to the law school.

But the New Orleans appeals court said that Texas "presented no compelling justification ... that allows it to continue to elevate some races over others, even for the wholesome purpose of correcting perceived racial imbalance."

The ruling, written by Circuit Judge Jerry Smith, notes that such policies can be used only under narrow circumstances, such as ongoing discrimination by a governmental entity.

Smith cited the Allen Bakke case in his ruling. When Bakke, a white medical student, was denied admission to the University of California at Davis, he sued the school for reverse discrimination. The case went all the way to the Supreme Court.