This case concerns Peggy Shields, employed as a clerk-typist by the Household Finance Corporation (HFC), a Delaware-based lending institution. Shields began working for HFC's Alameda, California office in February 1971. She was promoted to assistant manager and transferred to HFC's Oakland office, with increasing responsibility, assuming the duties of her manager when her manager was not present. She receieved positive performance reviews, but her employment was terminated. She was "informed and believes" that her termination was because of a common-law marriage, which was prohibited by company policy, which also forbade "the hiring of persons having such arrangements." Shields, with the ACLU's support, brought a lawsuit against HFC's Board of Directors, and sought damanges in the amount of $500,000 based on what they argue are discriminatory practices, based on marital status.Theyargued that HFC's practices violated the California Fair Employment Practices Act, as well as her right to privacy, guaranteed by the California Constitution.

The Complaint for Damages and Injunctive Relief, filed by the plaintiff in 1976, writes: "In adopting this policy in the name of HFC and enforcing it through the corporation's agents, the directors have caused the corporation to act beyond the scope of its lawfully endowed powers, both express and implied." The plaintiff sought to be resinstated to her former position with full seniority and benefits, and to prevent further discriminatory practices from being enacted by the HFC.

In December 1980, a settlement was reached. Shields was awarded a monetary sum, and the HFC was directed to communicate to all employees that such disciminatory behavior was prohibited in the future, and that any manager that violated this policy would be "subject to disclipinary action, including possible termination." An ACLU staff attorney stated: "I believe that in settling the case, we have won a victory not only for the privacy of Peggy Shields, but for all employees in private industry in California."