Justia Government & Administrative Law Opinion Summaries

Articles Posted in Business Law
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SPI Club, Inc. operates two nightclubs in Atlanta, and in July 2010, the City issued an alcohol license for each club. Daniel Corporation contended that SPI Club failed to open either club for business within nine months of the issue of these licenses, and in April 2011, Daniel sued City officials, seeking a writ of mandamus to compel these officials to recognize an automatic forfeiture of the licenses. The trial court found that SPI Club had, in fact, opened the clubs for business within the required time, and it denied the petition for a writ of mandamus. Daniel appealed, and after review of the trial court record, the Supreme Court affirmed. View "Daniel Corp. v. Reed" on Justia Law

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In this appeal, the issue before the Supreme Court was whether a contractor's bid was responsive to the Delaware Department of Transportation's (DelDOT) Request for Proposals (RFP). The contractor's bid did not include required paint certifications. In addition, the bid reflected the contractor's plan to use new steel beams, rather than refurbish the existing ones, as required by the RFP. The contractor chose to submit a bid that did not conform to the project specifications. The Supreme Court concluded that the contractor therefore did so at its own risk. DelDOT's decision that the bid was non-responsive was not arbitrary or capricious. Accordingly, the Court affirmed the trial court's entry of summary judgment in DelDOT's favor. View "Julian v. Delaware Dep't. of Transportation" on Justia Law

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This case arose out of the Boeing Company’s 2005 sale, to Spirit AeroSystems, Inc. of facilities in Wichita, Kansas, and Tulsa and McAlester, Oklahoma. Boeing terminated the Division's entire workforce of more than 10,000. The next day, Spirit rehired 8,354 employees, who had been selected by Boeing’s managers. Although older employees predominated in the workforce both before and after the sale, a lower percentage of older workers than younger ones were rehired. The plaintiffs sued, seeking to be declared a class of about 700 former Boeing employees who were not hired by Spirit. The Employees alleged, among other things, that Boeing, Onex, and Spirit violated the Age Discrimination in Employment Act (ADEA), the Employee Retirement Income Security Act (ERISA), Title VII of the Civil Rights Act of 1964 (Title VII), and the Americans with Disabilities Act (ADA). In two separate orders, the district court granted summary judgment on the Employees’ Title VII and ADA claims, and their ERISA and ADEA claims. The court denied the Employees’ motion for reconsideration. Upon review of the Employees' claims on appeal, the Tenth Circuit found no error in the district court's judgment and affirmed the grant of summary judgment. View "Apsley v. Boeing Co." on Justia Law

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Mason-Dixon Resorts, L.P. made a direct appeal to the Supreme Court to challenge a Pennsylvania Gaming Control Board decision that awarded a Category Slot Machine 3 slot machine license to intervenor Woodlands Fayette, L.L.C. Upon review, the Supreme Court affirmed: "[w]e have no doubt that there may have been other applicants for this remaining Category 3 license, including appellant, whose facilities may not have been appropriate for the award of a license. Our task, however, is not to determine for ourselves which of the facilities was the best one, but instead to pass upon the specific claims raised, under the standard review established by the Act. . . . finding no error warranting relief, we affirm the Board's Order." View "Mason-Dixon Resorts v. PA Gaming Control Board" on Justia Law

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The IRS issued a Notice of Deficiency (NOD) to Alex and Liset Meruelo a few days before the three-year statute of limitations expired. Alex was a partner in a partnership. The Meruelos petitioned the tax court challenging the deficiency contained in the NOD and subsequently moved to dismiss for lack of jurisdiction on the ground that the IRS issued the NOD prematurely, making it invalid. The tax court held that the NOD was valid and not premature and that the items were affected items. The parties later reached an agreement as to all issues, except the validity of the NOD. The tax court then entered a final decision holding that the Meruelos were liable for $1,387,006 in additional income tax and $277,401 in penalties. The Ninth Circuit Court of Appeals affirmed, holding that (1) a NOD issued when no partnership-level proceeding or final partnership administrative adjustment have been issued is valid; (2) a NOD issued when the normal three-year statute of limitations has not expired is valid; and (3) therefore, the tax court had jurisdiction. View "Meruelo v. Comm'r of Internal Revenue" on Justia Law

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The issue before the Supreme Court in this case was whether the Alltel Entities (collectively Petitioners Alltel Communications, Inc. and its regional subsidiaries), were included in the definition of "telephone company" for the purpose of increased license fees in S.C. Code Ann. section 1220-100 (2000). Pursuant to cross motions for summary judgment, the Administrative Law Court (ALC) granted summary judgment in favor of Petitioners, finding that they were not telephone companies for purposes of section 12-20-100. Alternatively, the ALC found that if the statute were ambiguous, Petitioners would prevail under the rule that an ambiguity in a taxing statute must be construed in favor of the taxpayer. Though the court of appeals recognized that the application of section 12-20-100 to Petitioners was not "absolutely clear," it reversed the grant of summary judgment and remanded the matter to the ALC for additional fact finding. Upon review, the Supreme Court reversed the court of appeals and reinstated the ALC's grant of summary judgment in favor of Petitioners. The term "telephone company" was not a defined term and its application to Petitioners was "doubtful." The presence of an ambiguity in a tax assessment statute requires that a court resolve that doubt in favor of the taxpayer.

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Petitioner Qwest Corporation sought review of an order of the Federal Communications Commission which denied Qwest’s petition for regulatory forbearance pursuant to 47 U.S.C. 160(a). Qwest filed a petition with the Commission in March 2009 seeking relief from certain regulations pertaining to telecommunications services in the Phoenix, Arizona, metropolitan statistical area (MSA). The Commission denied the petition, citing insufficient evidence of sufficiently robust competition that would preclude Qwest from raising prices, unreasonably discriminating, and harming consumers. Qwest challenged the Commission’s decision only as it pertained to Qwest’s mass-market retail services. Upon review, the Tenth Circuit denied Qwest's petition: "We are not a 'panel of referees on a professional economics journal,' but a 'panel of generalist judges obliged to defer to a reasonable judgment by an agency acting pursuant to congressionally delegated authority.'" The Court found the Commission's order was not "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law."

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Sea Hawk Seafoods, Inc. sued the City of Valdez for damages after Valdez applied for a grant from the State of Alaska for funding to convert Sea Hawk's seafood processing facility into a fish meal plant but then declined to accept the $600,000 grant that the State conditionally awarded to Valdez. On pre-trial motions, the superior court dismissed Sea Hawk's claims for breach of contract, breach of an agreement to negotiate, and breach of a duty to negotiate in good faith. Valdez and Sea Hawk filed cross-motions for summary judgment on Sea Hawk's remaining claim for promissory estoppel, which the court denied. Shortly before trial, the court dismissed Sea Hawk's promissory estoppel claim as a discovery sanction. Sea Hawk and Valdez both appealed. Upon review, the Supreme Court affirmed: Sea Hawk's claims were based on statements made and a letter sent by the Valdez City Manager to the owner of Sea Hawk. Because these communications, even when viewed in the light most favorable to Sea Hawk, were insufficient as a matter of law to support Sea Hawk's claims. The Court reversed the lower court's ruling denying Valdez summary judgment on Sea Hawk's promissory estoppel claim.

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The issue on appeal to the Supreme Court concerned Appellant Daniel Fuchs appeal of a district court's decision which found that the Director of the Idaho State Police Alcohol Beverage Control (ABC) had properly exercised his discretion when he ruled that neither party had been a prevailing party for the purposes of attorney fees. Fuchs was issued a Retail Alcohol Beverage License and subsequently opened Aubrey's House of Ale (Aubrey's) in Coeur d'Alene. The Alcohol Beverage Control Bureau Chief conducted an unannounced inspection of the premises. After this inspection, ABC filed a Complaint for Forfeiture or Revocation of Retail Alcohol Beverage License regarding Fuchs's license. Eventually, the parties filed cross motions for summary judgment in the action before an ABC hearing officer. After oral argument, the hearing officer granted summary judgment to Fuchs. On appeal to the Director of the ABC, the Director did not order Fuchs' license revoked because of confusion surrounding the proper interpretation of the applicable rule under which Fuchs was cited. The Director's Final Order addressed the hearing officer's erroneous application of quasi-estoppel and Fuchs' unsuccessful arguments regarding improper rulemaking and claim that the agency acted arbitrarily. The Director denied attorneys' fees to both parties, declaring neither was the prevailing party because neither acted without a reasonable basis in fact or law. Upon review, the Supreme Court agreed that Fuchs was not a prevailing party and affirmed the district court's decision to deny fees.

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Polypore International appeals the Federal Trade Commission's decision finding a violation of section 7 of the Clayton Act and ordering divestiture. The Commission held that Polypore's February 2008 acquisition of Microporous would substantially lessen competition or tend to create a monopoly in relevant markets. Polypore and the acquired Microporous Products are producers of battery separators. Polypore internal memos reveal that it had developed an "MP Plan," which was a response to competition from Microporous. The MP Plan sought to secure long-term contracts with customers that Polypore thought were in danger of switching to Microporous. Polypore's 2008 budget projected that it would lose increasing amounts of business to Microporous and would be forced to reduce prices if it did not acquire Microporous. The Commission issued an administrative complaint charged that Polypore's acquisition of Microporous may substantially lessen competition or tend to create a monopoly for several types of battery separators, in violation of the Clayton Act. After a four-week hearing, the ALJ issued an extensive opinion holding that the acquisition was reasonably likely to substantially lessen competition in four relevant markets. Upon review, the Eleventh circuit concluded the Commission did not err when it treated the acquisition as a horizontal merger, found that there was a single market for deep-cycle separators, and included Microporous's Austrian plant in its divestiture order.