Justia Government & Administrative Law Opinion Summaries

Articles Posted in Construction Law
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Two laws were challenged under the Buy American Act, 41 U.S.C. 8301, which requires that only materials mined, produced, or manufactured in the U.S. be employed for "public use" or used in construction, alteration, or repair of "any public building or public work. A 1985 Puerto Rican law required that local construction projects financed with federal or Commonwealth funds use only construction materials manufactured in Puerto Rico, with limited exceptions relating to price, quality, and available quantity, P.R. Laws Ann. tit. 3, 927-927h (Law 109). Cement is deemed "manufactured in Puerto Rico" only if composed entirely of raw materials from Puerto Rico. P.R. Laws Ann. tit. 10, 167e (Law 132), enacted in 2001, imposes labeling requirements on cement and required that foreign-manufactured cement carry a special label warning against its use in government-financed construction projects unless one of the exceptions contained in the BAA and Law 109 applies. The district court held that the local laws were preempted. The First Circuit upheld Law 109 as a permissible action taken by Puerto Rico as a market participant, but invalidated provisions of Law 132 that discriminate against sellers of foreign cement, leaving the remainder of the law intact.

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Albemarle County enacted a zoning ordinance governing construction on slopes within the county. Under the waiver provision of the county code, the planning commission was authorized to grant a waiver from the restrictions otherwise imposed by the ordinance. Kent Sinclair, who owned property in the county, filed a complaint seeking, inter alia, a declaratory judgment that the county exceeded the power delegated to it by the General Assembly in violation of the Dillon Rule because its procedure for considering waiver applications was not authorized by state law. The circuit court granted summary judgment against Sinclair. The Supreme Court reversed the circuit court's judgment that the decision to grant or deny waiver applications may be delegated to the planning commission, as the delegation was legislative in nature and not authorized by state law. Accordingly, in enacting the waiver provision, the county exceeded its authority from the General Assembly in violation of the Dillon Rule and the waiver provision was void. Remanded.

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The State challenged the Secretary's decision to accept four parcels of land within the geographic boundaries of the State into trust for the benefit of the Sisseton-Wahpeton Oyate of the Lake Traverse Reservation, a federally recognized Indian tribe. The district court granted summary judgment in favor of the Secretary and the State appealed. The court held that, because the State lacked standing to bring a constitutional due process claim and did not raise any additional arguments on appeal, the State was not entitled to relief. The court dismissed and did not reach the merits.

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Appellant Ryan Nelson agreed to perform an errand for his employer, a subcontractor, on the Appellant's day off. While on in the errand, the Appellant was injured at the job site. His employer filed a "notice of controversion" on the basis that Appellant was intoxicated at the time of the injury and his injuries were proximately caused by his intoxication. Appellant sued the general contractor and the Municipality of Anchorage (the owner of the job site) for negligence. The defendants asked the superior court to dismiss the action under the exclusive remedy provision of the Alaska Workers' Compensation Act. The superior court granted summary judgment to the general contractor and the Municipality. Appellant appeals, arguing that lack of a workers' compensation remedy permits him to bring a common law negligence action or, alternatively, that the exclusivity provision of the Alaska Workers' Compensation Act denied him due process. He also argued as a matter of statutory construction, that the Municipality could not be a project owner. Because the worker has not shown that the employer’s controversion of benefits left him to his common law remedies, the Supreme Court determined Appellant's statutory construction and constitutional claims were not ripe. The Court also held that the Municipality could be a project owner.

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Ivory Homes purchased various concrete products from a company that, when it delivered the products, provided an invoice that charged a single sales price without indicating separate delivery charges. Ivory Homes then discovered if it structured its transactions with the company differently and bargained for separate and independent delivery charges, the charges would not be taxable. Subsequently, Ivory Homes filed a refund request with the Utah Taxpayer Services Division for sales tax it paid for several years on expenses associated with the concrete products. The Division denied the refund. The Utah State Tax Commission also denied the refund request. The Supreme Court affirmed the Tax Commission's decision that it did not erroneously receive any tax and that Ivory Homes was not entitled to a tax refund where (1) under a substantial evidence standard of review, the Commission correctly made findings of fact that the parties did not intend delivery charges in their original transactions; and (2) alternatively, a plain language interpretation of the Refund Statute requires that the Tax Commission commit some error in its receipt of taxes before a taxpayer is entitled to a refund.

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Defendants Scott and Christina Lees appealed a trial court decision that found in favor of Plaintiff Stephen Wyle on his claim of negligent misrepresentation. In 2002, Defendants purchased a two-unit apartment building. Defendants wished to expand the building, and approached a contractor to add a third apartment to the back of the property. Conditional approval for the site plan was granted in November 2003 and final approval was obtained in January 2004. However, Defendants did not obtain the proper permits prior to building or occupying the unit. As a result, the town's building inspector never inspected the unit. The Lees again hired the contractor both to complete a second addition to the property. Defendants again failed to secure the necessary building permits. After the completion of construction, town officials visited the property a number of times in 2006 and 2007. The town informed Defendants that "[s]ave for acceptable field changes[,] the site plan requirements have been satisfied." Defendants listed the property for sale in 2007. After entering into the agreement, Plaintiff had a comprehensive home inspection performed and sent a list of specific concerns regarding the property to Defendants. The concerns were either remedied by the Defendants or waived by Plaintiff prior to closing. Approximately six weeks after closing, the entire property was inspected by the town building inspector and fire chief which revealed numerous building and life safety code violations. Plaintiff was ordered not to occupy the unit until he corrected the violations and made the site compliant with site plan regulations. After correcting the violations, Plaintiff then brought a single claim against Defendants for negligent misrepresentation. Following a two-day bench trial, the trial court issued an order awarding damages to the Plaintiff. Upon review of the trial court record, the Supreme Court found that the evidence at trial established that Defendants negligently misrepresented that the premises were licensed for immediate occupancy and that they had obtained all the necessary permits. Accordingly, the Court found that the trial record supported the decision in favor of Plaintiff, and the grant of damages.

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A landowner submitted a site development plan to the county planning board, proposing to construct a mixed-use condominium building. Joel Broida, who lived across the street from the landowner's parcel of land, filed a motion to deny approval of the site development plan. The planning board approved the plan. Broida appealed. A hearing examiner dismissed the appeal, holding that Broida lacked standing. Broida appealed. The board of appeals (Board) split evenly on the issue of Broida's standing and decided to re-vote at a later date. The landowner then filed a complaint for a declaratory judgment, declaring that the Board's split decision was final and required the appeal to be dismissed. The circuit court granted summary judgment in favor of the landowner. The court of special appeals reversed, holding that Broida had standing to appeal. The court therefore did not address whether there was a final Board decision. The Court of Appeals reversed, holding (1) there was no final administrative decision and, therefore, the landowner failed to exhaust its administrative remedies; and (2) because there was no final administrative decision, the lower courts erred in reaching the merits of the case, and the declaratory judgment action should have been dismissed. Remanded.

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The Secretary of Labor cited the refinery for nine "serious" violations of the asbestos in construction standard, which prescribes protective requirements based on measurable concentration of asbestos fibers to which employees are or may be exposed. The ALJ affirmed the violations and the classification. The Occupational Safety and Health Review Commission reduced the classification to "other than serious" under 29 U.S.C. 666, in part because the Secretary failed to present case-specific evidence of possible employee exposure to asbestos. The Third Circuit vacated and remanded for the citations to be affirmed as "serious." Precedent only requires that there could be exposure to asbestos that is substantially probable to lead to serious harm. Applying this standard, the violations were "serious;" there is no need for case-specific evidence. If the Secretary has shown violations of regulations involving Class II work and the presence of asbestos, the burden shifts to the employer to show that the violations were not "serious."

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After respondent was granted a permit by the Minnesota Public Utilities Commission (âMPUCâ) for routing and construction of a pipeline to deliver natural gas to an energy center within appellantâs city limits, appellant commenced an action for declaratory and injunctive relief seeking to require respondent to obtain a franchise from appellant to operate the pipeline. The district court dismissed, concluding that appellant did not have franchise authority over respondentâs pipeline, and the appeals court affirmed. The Supreme Court reversed and remanded, holding (1) a municipality is authorized by Minn. Stat. 301B.01 to impose a franchise on a public utility that has constructed and operates a gas pipeline located on public property within the municipality, regardless of whether the pipeline itself supplies gas to the public; (2) a municipality is authorized by Minn. Stat. 216B.36 to impose a franchise on a public utility that serves customers within the municipality or that uses public property within the municipality to serve customers elsewhere; and (3) the issuance of a permit by the MPUC for the construction of a gas pipeline does not preempt pursuant to Minn. Stat. 216G.02 a municipal ordinance requiring a franchise for the operation of the pipeline after construction is complete.

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There was a catastrophic failure at the Spokane waste water treatment plant. One man was killed, and two others were severely injured. The survivors, including Respondent Larry Michaels, successfully sued Appellant CH2M Hill, the engineering firm that worked for the city at the time of the accident. The City of Spokane, as employer of Respondents, was immune from liability under the Industrial Insurance Act. All parties agreed that the City was negligent. The issue at trial was whether CH2M Hill was also negligent. On appeal to the Supreme Court, CH2M Hill challenged the trial judge's rulings on its liability as well as twenty-six other findings of fact. Of importance here was whether the City's immunity could be imputed to CH2M Hill under the same insurance act. The Supreme Court dissected all twenty-six points in its review, and concluded that CH2M Hill was not entitled to the same immunity as the City. The Court agreed with all rulings of the trial court. The Court affirmed the trial court's decision in the case.