Justia Government & Administrative Law Opinion Summaries

Articles Posted in Contracts
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In 1993, the County and the Orange County Employee Retirement System (OCERS) entered into a Memorandum of Understanding (MOU), allowing the County to access surplus investment earnings controlled by OCERS and depositing a portion of the surplus into an account to pay for county retirees' health insurance. The county adopted the Retiree Medical Plan, funded by those investment earnings and mandatory employee deductions. The Plan explicitly provided that it did not create any vested rights. The labor unions then entered into MOUs, requiring the county to administer the Plan and that retirees receive a Medical Insurance Grant. In 1993-2007, retired employees received a monthly grant benefit to defray the cost of health insurance. In 2004, the county negotiated with its unions to restructure the underfunded program, reducing benefits for retirees.Plaintiffs filed suit. The Ninth Circuit affirmed summary judgment in favor of the county. The 1993 Plan explicitly provided that it did not create any vested right to benefits. The Plan was adopted by resolution and became law with respect to Grant Benefits, part of the MOUs. The MOUs expired on their own terms by a specific date. Absent express language providing that the Grant Benefits vested, the right to the benefits expired when the MOUs expired. The Plan was not unilaterally imposed on the unions and their employees without collective bargaining; the unions executed MOUs adopting the Plan. The court rejected an assertion that the Grant Benefit was deferred compensation and vested upon retirement, similar to pension benefits. View "Harris v. County of Orange" on Justia Law

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In 2013, Bullock, a civilian employed by the Army, received a formal letter of reprimand from her supervisor. Bullock filed an EEO claim alleging sex discrimination and retaliation. In proceedings before the EEOC’s mediation program, Bullock was represented by her attorney, Elliott; the Army was represented by its management official Shipley, and attorney Lynch. According to Bullock, the parties reached agreement as to seven non-monetary demands on July 29 and reached an oral agreement regarding her monetary demands on August 27, 2015. The mediating administrative judge sent an email to the parties asking for the “agency’s understanding of the provisions of the settlement agreement” and noting that, “[o]nce we confirm that the parties are in complete agreement, the agency can begin work on the written settlement agreement.”. No written settlement agreement was executed. In September, the Army “rescinded its settlement offer.” Bullock continued to press her claims before the EEOC for a year, then filed a breach of contract claim regarding an oral settlement agreement.The Federal Circuit reversed the dismissal of the complaint, rejecting an argument that EEOC and Army regulations, requiring that settlement agreements be in writing, preclude enforcement of oral settlement agreements. The court remanded for a determination of whether the representative of the Army had the authority to enter a settlement agreement and whether the parties actually reached an agreement. View "Bullock v. United States" on Justia Law

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The Supreme Court affirmed the order of the district court granting summary judgment to the Montana Department of Revenue and dismissing Appellants' claims that the Department tortiously, unconstitutionally, and in breach of contract interfered with B.Y.O.B., Inc.'s (BYOB) attempts to transfer its ownership of an agency franchise agreement (AFA) for liquor sales, holding that the district court did not err.After the Department took action to terminate the AFA at issue for alleged violations of the Montana liquor laws, BYOB attempted to sell its interest and transfer ownership of the AFA it held with the Department. When the effort was unsuccessful, Appellants brought this suit. The district court granted summary judgment to the Department, finding that Appellants' AFA transfer-related claims were barred by quasi-judicial immunity or, alternatively, by the parties' settlement agreement. The Supreme Court affirmed, holding that the district court did not err in its rulings related to BYOB's attempts to assign the AFA to third parties. View "B.Y.O.B., Inc. v. Montana Department of Revenue" on Justia Law

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The Supreme Court affirmed the decision of the State Corporation Commission finding that a pumped storage hydroelectric facility (or pumped storage) generates "renewable energy" under the former definition in Va. Code 56-576 and that the amended definition would not apply to contracts executed before the amendment's effective date, holding that there was no error.The Commission concluded that pumped storage satisfied the statutory definition of renewable energy in effect at the time that the service provider executed its contracts and declined to find that the amended definition would apply retroactively to contracts executed before the amendment's effective date. The Supreme Court affirmed, holding (1) the Commission did not err in its interpretation of the statute or its finding that pumped storage satisfied the former definition of renewable energy; and (2) the Commission did not err in refusing retroactively to apply the amended statutory definition of renewable energy to the service provider's contracts that were executed before the amendment took effect. View "Virginia Electric & Power Co. v. State Corporation Commission" on Justia Law

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The city of Puyallup (City) hired Conway Construction Company to build a road. The contract allowed the City to terminate the contract early either for its convenience or on Conway’s default, but a termination for convenience would result in more costs for the City. The City ended up terminating the contract partway through construction, claiming Conway defaulted. After a lengthy bench trial, the trial court concluded that Conway was not in default when the City terminated the contract and converted the termination into one for convenience. After review, the Washington Supreme Court affirmed the trial court’s decision. Further, the Court held that the City was not entitled to an offset for any defective work discovered after termination because the City did not provide Conway with the contractually required notice and opportunity to cure. View "Conway Constr. Co. v. City of Puyallup" on Justia Law

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A three-year memorandum of understanding (MOU) between Alameda County Superior Court (ACSC), the County, and the Sheriff’s Office governed court security services. The trial court held that the MOU did not obligate the Sheriff to provide a minimum level of court security services of 129 “FTEs” (full-time equivalents) after the MOU's expiration but rather entitled the County and the Sheriff to unilaterally reduce court security services if state funding was not sufficient to pay for 129 FTEs. The decision turned on the court's conclusion that MOU Exhibit C-3 permitted the Sheriff to reduce court security services during the last six months of the three-year MOU period and was the “deployment schedule” that remained in force after the MOU’s expiration.ACSC argued that Exhibit C-1, the deployment schedule that governed the level of court security during the first two years and required a minimum of 129 FTEs, was the only deployment schedule in the MOU, and remained in force after the MOU's expiration. The court of appeal reversed. Exhibit C-1’s provisions remained in force after the expiration of the MOU because Exhibit C-1 is the only portion of the MOU that meets the requirement of Government Code section 699261 that a court security MOU must specify an “agreed-upon level” of court security services. Exhibit C-3 did not satisfy that requirement. View "Superior Court v. County of Alameda" on Justia Law

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New Vision sued SG in the federal district court in Nevada. SG then filed Patent Trial and Appeal Board petitions. The Board declined to respect the forum selection agreement in the parties’ license agreement, which referred to “exclusive” jurisdiction in the appropriate federal or state court in the state of Nevada, and proceeded to a final decision, finding the claims at issue as well as proposed substitute claims, patent-ineligible under 35 U.S.C. 101.The Federal Circuit vacated and remanded the Board’s decisions for consideration of the forum selection clause in light of its 2019 “Arthrex” decision. Because Arthrex issued after the Board’s final-written decisions and after New Vision sought Board rehearing, New Vision has not waived its Arthrex challenge by raising it for the first time in its opening brief. The Board’s rejection of the parties’ choice of forum is subject to judicial review; section 324(e) does not bar review of Board decisions “separate . . . to the in[stitu]tion decision.” View "New Vision Gaming & Development, Inc. v. SG Gaming, Inc." on Justia Law

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In this dispute over who had the authority to lease shellfishing beds on behalf of the Town of Branford, the Supreme Court reversed the trial court's grant of summary judgment in favor of the Town, holding that summary judgment was improper.Plaintiffs had been granted the right of first refusal by Branford's Shellfish Commission to lease certain shellfishing grounds located in the Town, but the Commission leased the grounds to Plaintiffs' competitor. Plaintiff brought this action alleging breach of contract and promissory estoppel and that it enjoyed a right of first refusal. The Town moved for summary judgment, arguing that the right of first refusal was no a valid or enforceable contract because the Commission lacked authority to enter into it. The trial court agreed, holding that only the Town's Board of Selectmen had authority to lease the shellfishing beds on behalf of the Town. The Supreme Court reversed, holding that there was a genuine issue of material fact precluding summary judgment. View "Shoreline Shellfish, LLC v. Branford" on Justia Law

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In 2008, severe storms hit Indiana. Columbus Hospital sustained significant damage. President Bush authorized FEMA assistance through disaster grants under the Stafford Act, 42 U.S.C. 5121–5206. The state agreed to be the grantee for all grant assistance, with the exception of assistance to individuals and households. FEMA reserved the right to recover assistance funds if they were spent inappropriately or distributed through error, misrepresentation, or fraud. Columbus apparently submitted its request directly to FEMA, instead of through the state. FEMA approved Columbus projects, totaling approximately $94 million. Funds were transmitted to Columbus through the state. In 2013, the DHS Inspector General issued an audit report finding that Columbus had committed procurement violations and recommended that FEMA recover $10.9 million. FEMA reduced that amount to $9,612,831.19 and denied Columbus’s appeal. Columbus did not seek judicial review. FEMA recovered the disputed costs from Columbus in 2014.In 2018, Columbus filed suit, alleging four counts of contract breach and illegal exaction. The Claims Court dismissed Columbus’s illegal exaction claim, holding that Columbus did not have a property interest in the disputed funds and that FEMA’s appeal process protected Columbus’s rights to due process, and dismissed Columbus’s contract-based claims, finding that Columbus had no rights against FEMA under that contract or otherwise. The Seventh Circuit affirmed the dismissal of the illegal exaction and express and implied contract claims. The court vacated the dismissal of the third-party beneficiary contract claim. View "Columbus Regional Hospital v. United States" on Justia Law

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In 2009, Meidinger submitted whistleblower information to the IRS under 26 U.S.C. 7623, concerning “one million taxpayers in the healthcare industry that are involved in a kickback scheme.” The IRS acknowledged receipt of the information, but did not take action against the accused persons. The IRS notified Meidinger of that determination. Meidinger argued that the IRS created a contract when it confirmed receipt of his Form 211 Application, obligating it to investigate and to pay the statutory award. The Tax Court held that it lacked the authority to order the IRS to act and granted the IRS summary judgment. The D.C. Circuit affirmed that Meidinger was not eligible for a whistleblower award because the information did not result in initiation of an administrative or judicial action or collection of tax proceeds.In 2018, Meidinger filed another Form 211, with the same information as his previous submission. The IRS acknowledged receipt, but advised Meidinger that the information was “speculative” and “did not provide specific or credible information regarding tax underpayments or violations of internal revenue laws.” The Tax Court dismissed his suit for failure to state a claim; the D.C. Circuit affirmed, stating that a breach of contract claim against the IRS is properly filed in the Claims Court under the Tucker Act: 28 U.S.C. 1491(a)(1). The Federal Circuit affirmed the Claims Court’s dismissal, agreeing that the submission of information did not create a contract. View "Meidinger v. United States" on Justia Law