Justia Government & Administrative Law Opinion Summaries

The Department of Transportation’s Federal Highway Administration (FHWA) contracted with Eagle for construction work in Yellowstone National Park, to be completed by October 2018. The contract required Eagle to submit a schedule detailing how it would complete the project on time. By late January 2017, FHWA had rejected Eagle’s eight formal schedule submissions as not complying with the contract. In February 2017, the contracting officer terminated the contract for default, concluding that Eagle was insufficiently likely to complete the project on time.Eagle challenged the termination for default under the Contract Disputes Act of 1978 (CDA), 41 U.S.C. 7101–7109, before the Civilian Board of Contract Appeals, which ruled that the termination for default was improper. The Board converted the termination to one for the convenience of the government, relying heavily, though not exclusively, on its view of deficiencies in the contracting officer’s reasoning, rather than on de novo findings about whether the record developed before the Board showed that standard for termination for default was met. The Federal Circuit vacated and remanded for the Board to adjudicate the case de novo. The Board’s evaluation of the contracting officer’s reasoning exceeded the limited scope of the threshold inquiry. The Board also failed to separate that threshold analysis from its de novo evaluation of the evidence. View "Department of Transportation v. Eagle Peak Rock & Paving, Inc." on Justia Law

Gold Coast Commodities, Inc. makes animal feed using saponified poultry and plant fats at its Rankin County, Mississippi facility. Because its production process involves, among other things, old restaurant grease and sulfuric acid, Gold Coast is left with about 6,000 gallons of oily, “highly acidic,” and “extremely hot” wastewater each week. The City of Brandon, Mississippi, told a state agency that it believed Gold Coast was “discharging” that “oily, low-pH wastewater” into the public sewers. As a result, the Mississippi Department of Environmental Quality launched an investigation. Two months before the Department’s investigation, Gold Coast purchased a pollution liability policy from Crum & Forster Specialty Insurance Company. After the City filed suit, Gold Coast—seeking coverage under the provisions of its Policy—notified the insurer of its potential liability. But Crum & Forster refused to defend Gold Coast. The insurer insisted that because the Policy only covers accidents. The district court agreed with Crum & Forster—that the City wasn’t alleging an accident.   The Fifth Circuit affirmed. The court wrote that here, the Policy is governed by Mississippi law. In Mississippi, whether an insurer has a duty to defend against a third-party lawsuit “depends upon the policy's language.” The district court found that the “overarching” theme of the City’s complaint, regardless of the accompanying “legal labels,” is that Gold Coast deliberately dumped wastewater into the public sewers. The court agreed with the district court and held that Gold Coast isn’t entitled to a defense from Crum & Forster. View "Gold Coast v. Crum & Forster Spclt" on Justia Law

The Ohio Valley Conference ("the OVC") appealed a judgment dismissing its official-capacity and individual-capacity claims against Randall Jones, the Chair of the Board of Trustees of Jacksonville State University ("JSU"), and Don C. Killingsworth, Jr., the President of Jacksonville State University. The OVC was a men's and women's collegiate athletic conference that began in 1948. The OVC Constitution contained two relevant provisions concerning resignation of membership from the conference. In addition to alleging that JSU had failed to pay the conference-resignation fee described in Article 4.5.3 of the OVC Constitution, the OVC also asserted that JSU owed the conference money for tickets to certain conference championship basketball tournament tickets. JSU, Jones, and Killingsworth filed a joint motion to dismiss the OVC's complaint. With respect to the OVC's claims against JSU, defendants argued that the Alabama State Board of Adjustment ("the BOA") had "exclusive jurisdiction" over those claims. With respect to any claims the OVC asserted against Jones and Killingsworth in their official capacities, defendants argued the claims were barred by State immunity under § 14 of the Alabama Constitution. With respect to any claims the OVC asserted against Jones and Killingsworth in their individual capacities, defendants argued the OVC had failed to state a claim upon which relief could be granted, and they maintained that the claims were barred by the doctrine of State-agent immunity. The Alabama Supreme Court concluded the OVC's claims against Jones and Killingsworth in their official capacities seeking payment for the liquidated amount of the conference-resignation fee and for the value of the tickets JSU received for the OVC's 2021 conference championship basketball tournament did not constitute claims against the State, and, therefore, they were not barred by State immunity. Accordingly, the circuit court erred in dismissing the OVC's official-capacity claims against Jones and Killingsworth. However, the Court found the OVC failed to state individual-capacity claims against Jones and Killingsworth for which relief could be granted because Jones and Killingsworth lacked any duty apart from their official positions to make the payments the OVC sought to recover and because the OVC's complaint did not supply the factual allegations necessary to support those individual-capacity claims. View "Ohio Valley Conference v. Jones, et al." on Justia Law

In 2014 the Los Angeles City Council passed a resolution directing various City departments and officials to prepare and execute the necessary approvals and agreements to convey the property to Childhelp in exchange for Childhelp’s agreement to continue using the property to provide services for victims of child abuse. Ultimately, however, the City decided not to transfer the property to Childhelp. Childhelp filed this action against the City for, among other things, declaratory relief, writ of mandate, and promissory estoppel, and the City filed an unlawful detainer action against Childhelp. After the trial court consolidated the two actions, the court granted the City’s motion for summary adjudication on Childhelp’s cause of action for promissory estoppel, sustained without leave to amend the City’s demurrer to Childhelp’s causes of action for declaratory relief and writ of mandate, and granted the City’s motion for summary judgment on its unlawful detainer complaint. Childhelp appealed the ensuing judgment.   The Second Appellate District affirmed. The court explained that Childhelp had occupied the property for almost 30 years and had an expectation it would eventually own the property. The 2014 resolution certainly suggested the City was seriously considering selling the property to Childhelp. But it was undisputed the parties never completed the transaction in accordance with the City Charter. While Childhelp cites cases reciting general principles of promissory estoppel, it does not cite any cases where the plaintiff successfully invoked promissory estoppel against a municipality in these circumstances. The trial court did not err in granting the City’s motion for summary adjudication on Childhelp’s promissory estoppel cause of action. View "Childhelp, Inc. v. City of L.A." on Justia Law

After years of what the Los Angeles Unified School District (LAUSD) viewed as unsatisfactory teaching performance by a certificated teacher, LAUSD served the teacher with a Notice of Intent to Dismiss and a Statement of Charges, which included notice that the employee was suspended without pay. The teacher brought and prevailed on a motion for immediate reversal of suspension (MIRS) and thus received pay during the pendency of the dismissal proceedings. LAUSD ultimately prevailed in those proceedings. LAUSD then sought a writ of administrative mandamus in the superior court seeking to set aside the order granting the MIRS and to recoup the salary payments it had made to the teacher during the pendency of the proceedings. The trial court denied the writ, holding that the MIRS order is not reviewable. The court also ruled (1) LAUSD cannot recover the payments to the teacher under its cause of action for money had and received and (2) LAUSD’s cause of action for declaratory judgment is derivative of its other claims. The trial court entered judgment against LAUSD in favor of the teacher.   The Second Appellate District affirmed. The court explained that LAUSD has failed to show that in adding the MIRS procedure, the Legislature intended school districts to be able to recover payments to subsequently dismissed employees. The court wrote that if LAUSD believed such recovery should be permitted through judicial review of MIRS orders or otherwise, it should address the Legislature. View "L.A. Unified School Dist. v. Office of Admin. Hearings" on Justia Law

The Supreme Court reversed the order of the circuit court entering summary judgment favor of Eastern Shore Community Services Board (ESCSB) and holding that Oreze Healthcare LLC's conveyance of real property to a third party prohibited Oreze from pursuing its breach of contract claim against ESCSB, holding that ESCSB was not entitled to summary judgment as a matter of law.ESCSB and Oreze entered into a commercial lease agreement under which ESCSB agreed to lease the four buildings comprising an assisted living facility whose license had been suspended and to provide interim care to its residents until a permanent solution was reached. When water damaged the buildings and no remedy was reached before ESCSB terminated the lease Oreze brought this complaint for breach of contract. While the lawsuit was pending, Oreze conveyed the property to a third party by general warranty deed. The circuit court granted summary judgment for ESCSB, ruling that Oreze failed to reserve its claims in the deed. The Supreme Court reversed, holding that the deed did not extinguish or transfer Oreze's right to sue ESCSB for property damage arising from an alleged breach of the lease. View "Oreze Healthcare v. Eastern Shore Community Services Bd." on Justia Law

The Court of Appeals affirmed the judgment of the Appellate Division dismissing Plaintiffs' claims that Taxi and Limousine Commission and New York City breached the implied covenant of good faith and fair dealing and engaged in deceptive business practices under N.Y. Gen. Bus. Law 349, holding that Plaintiffs failed to state a claim.Plaintiffs, entities that purchased government licenses to operate taxis at an auction, brought this action alleging that Defendants (1) breached the implied covenant of good faith and fair dealing by failing to enforce certain licensing requirements against smartphone applicate-based competitors such as Uber Technologies, Inc. and Lyft, Inc.; and (2) engaged in deceptive business practices in their promotion of the auction. Supreme Court granted in part Defendants' motion to dismiss. The Appellate Division reversed in part and concluded that both claims should be dismissed. The Court of Appeals affirmed, holding (1) Plaintiffs did not adequately plead a claim for breach of the implied covenant of good faith and fair dealing; and (2) Plaintiffs failed to plead the type of conduct covered by N.Y. Gen. Bus. Law 349. View "Singh v. City of New York" on Justia Law

This appeal arises from litigation involving a public construction project to build the Central Region 9th Street Span K-8 school in downtown Los Angeles. The Los Angeles Unified School District (LAUSD or District) and Suffolk Construction Company, Inc. (Suffolk), entered into a development and construction agreement (contract), for the development and building of the school. Suffolk later entered into subcontracts with various subcontractors, including R.J. Daum Construction Company (Daum) and Fisk Electric Company (Fisk). Throughout the project, various problems arose, which caused delay and disruption and resulted in increased costs to Suffolk, Daum and Fisk. Suffolk sued LAUSD, alleging breach of the contract, implied contractual indemnity, and seeking declaratory relief. The jury found that Suffolk substantially performed its contract and that LAUSD breached the implied warranty of correctness by providing plans and/or specifications for the concrete footing design that was not correct. Further, the jury determined Suffolk’s damages for the concrete issue decided in phase 1 (TIA 5).   The Second Appellate District found that the phase 1 verdict must be reversed and remanded for retrial on the ground that the special jury instruction based on Public Contract Code section 1104 was improper. The reversal of the phase 1 liability verdict requires that the phase 2 trial of damages for TIA 5 (related to the concrete cracking issue) must also be reversed and remanded for retrial. Finally, the court held that the trial court erred in granting JNOV on the phase 2 jury verdict. Thus, the decision granting the JNOV is reversed with direction to reinstate the jury verdict on that issue. View "Suffolk Construction Co. v. Los Angeles Unified School Dist." on Justia Law

Plaintiff was on active duty with the United States Army. He bought a car from Select Cars of Thornburg in Fredericksburg, Virginia, and financed his purchase with a loan from United Auto Credit Corporation. The loan financed not only the car’s cost but also the cost of Guaranteed Asset Protection. Guaranteed Asset Protection is like extra insurance, covering any amount still due on the car loan after auto insurance is paid out if the car is totaled or stolen. Plaintiff’s claims arise from this single loan. This loan, Plaintiff alleged, violated the Military Lending Act because the loan agreement mandated arbitration and failed to disclose certain information. The district court dismissed the case, holding that the loan was not covered by the Act at all.   The Fourth Circuit affirmed. The court explained that a statutory provision must be given the ordinary meaning it had when it was enacted. Relevant dictionaries, carefully considered, sometimes shed light on that ordinary meaning. Yet here, dueling dictionaries provide more than one linguistically permissible meaning.  But by examining the relevant phrase in its statutory context. This context shows that while “the express purpose” can be used in different senses, it is best read in Section 987(i)(6) to mean the specific purpose. This loan was offered for the specific purpose of financing Plaintiff’s car purchase. And that satisfies Section 987(i)(6)’s relevant condition and the Act is inapplicable. View "Jerry Davidson v. United Auto Credit Corporation" on Justia Law

This matter arose out of disputes between Antero Resources Corporation (“Antero”) and Airport Land Partners, Ltd (“Airport Land”) and other royalty owners (collectively, “Royalty Owners”) over whether Antero could deduct certain post-production costs from royalty payments under the applicable leases’ royalty clauses. Royalty Owners alleged that Antero has underpaid royalties in violation of their respective lease contracts. Royalty Owners filed individual breach-of-contract suits against Antero for dates between December 2016 and April 2017. Antero moved to dismiss the suits, arguing that the claims should have been brought before the Colorado Oil and Gas Conservation Commission (“COGCC” or “the Commission”) in the first instance. Statutorily, COGCC lacked jurisdiction under section 34-60-118.5(5), C.R.S. (2022), to engage in contract interpretation to resolve a bona fide dispute between parties under an oil and gas lease. But in 2017, without any intervening change to explain the shift, two district courts changed course, asserting that COGCC had responsibility for resolving contract disputes on the theory either that the contract terms were unambiguous or that settled law compelled a certain interpretation. The Colorado Supreme Court returned to the longstanding statutory mandate that COGCC lacked jurisdiction to resolve bona fide disputes of contract interpretation and held that such a dispute exists where the parties disagree in good faith about the meaning or application of a relevant contract term. View "Antero Resources v. Airport Land Partners" on Justia Law