Justia Government & Administrative Law Opinion Summaries

Two public utilities (the companies) were wholly owned subsidiaries of appellant FirstEnergy Corporation. Appellees were residential customers of the companies. The customers filed a class-action complaint against FirstEnergy and the companies in the county court of common pleas. The complaint raised four causes of action: declaratory judgment, breach of contract, fraud, and injunctive relief. The trial court granted FirstEnergy's motion to dismiss the complaint for lack of jurisdiction, finding that the Public Utilities Commission of Ohio (PUCO) had exclusive jurisdiction over the allegations in the complaint. The court of appeals affirmed in all respects except with regard to the customers' fraud claim. The appellate court determined on two separate grounds that the trial court had jurisdiction over the fraud claim and remanded that claim to the trial court. The Supreme Court reversed the appellate court, holding (1) the customers' fraud claim was not a pure tort action, but rather, was a claim that the companies were overcharging the customers for electric service; and (2) because the complaint was challenging the rates charged for utility service, it fell within the exclusive jurisdiction of the PUCO. View "DiFranco v. FirstEnergy Corp." on Justia Law

After Mack Pitts was killed in a construction accident at Hartsfield-Jackson Atlanta International Airport, his estate and minor children sued the City of Atlanta and several contractors for breaches of contracts concerning the construction project on which Pitts had been working. Although Pitts was not a party to these contracts, his estate and children asserted that he was an intended beneficiary and that they, therefore, had standing to sue for breach of the contracts. On cross-motions for summary judgment, the trial court found that Pitts was not an intended beneficiary, denied summary judgment to the estate and children, and awarded summary judgment to the City and contractors. The Court of Appeals reversed, concluding that the trial court should have awarded summary judgment on the claims for breach of contract to the estate and children, not to the City and contractors. The Court of Appeals determined that Pitts was, in fact, an intended beneficiary of the contracts, and it found that the evidence was undisputed that the City and contractors had breached the contracts. Upon review, the Supreme Court concluded that the Court of Appeals misapplied or failed to apply several fundamental principles of contract law in its consideration of these cases. Accordingly, the Court vacated the appellate court's decision and remanded the case for further proceedings. View "Holder Construction Company v. Estate of Pitts" on Justia Law

The Phenix City Board of Education ("the Board") sought mandamus relief from the Russell Circuit Court's denial of the Board's motion to dismiss or, in the alternative, for a summary judgment on claims brought against it by The Lisle Company, Inc. ("Lisle"). Because the Board is immune from suit pursuant to § 14, Ala. Const. 1901, the Supreme Court granted the Board's petition and issued the writ. View "Lisle Company, Inc. v. Phenix City Board of Education" on Justia Law

In 1993, Bowers and the FAA entered into a lease for office and warehouse space. The FAA agreed to monthly payments, $19,509, beginning in January 1994, payable each month “in arrears.” The parties modified the lease eight times until termination on September 30, 2006. In 2008, Bowers filed a claim of $82,203.72 with the contracting officer (41 U.S.C. 7103(a)(1)), for the final month’s rent and property damage. Bowers claimed that because the contract provided for payment “in arrears,” payment made in September, 2006 was for the August rent. The contracting officer held that rent was actually paid in advance, but allowed other, minor, claims. Before the Civilian Board of Contract Appeals, Bowers attempted to establish that the FAA had not paid rent for three months in 1994. CBCA rejected the attempt and Bowers signed a certificate of finality. In 2009 Bowers submitted two more claims: $56,640.78 (plus interest) for assertedly unpaid rent for January, February, and March of 1994 and that the FAA underpaid by $664 every month from October 1, 1998 to October 1, 2006, a total of $64,408.00 (plus interest). The contracting officer denied the claims. The Claims Court held that the CBCA’s final decision precluded the litigation. The Federal Circuit affirmed. View "Bowers Inv. Co, LLC v. United States" on Justia Law

Appellant Voltage Vehicles appealed an order of the Arkansas Motor Vehicle Commission directing Voltage to repurchase six 2008 electric vehicles from two Arkansas dealers (collectively referred to as "Rainbow"). The order stemmed from a safety recall issued by Voltage regarding its vehicles, Rainbow's subsequent letter to Voltage and to the Commission notifying them of its desire to terminate the licensing agreement, and Voltage's refusal to repurchase the six vehicles Rainbow purchased from Voltage. The circuit court affirmed the Commission's order. Voltage appealed, arguing that the buy-back provisions of the Arkansas Motor Vehicle Commission Act did not require it to repurchase the vehicles in Rainbow's inventory because they were not for the "current model year and one year prior model year." The Supreme Court reversed, holding that because the Commission failed in its obligation to make sufficient findings of fact relevant to the contested issued of what constituted the current model year, the Court could not determine whether the Commission resolved that issue in conformity with the law. Remanded to make findings based on the correct termination date. View "Voltage Vehicles v. Ark. Motor Vehicle Comm'n" on Justia Law

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

In 2007 the Postal Service awarded Tip Top a contract under which the Postal Service would assign individual projects by issuing work orders. In 2009, the Postal Service issued a work order to replace the air conditioning system at the Main Post Office in Christiansted, Virgin Islands, for the price of $229,736.92. As a result of that work Tip Top submitted a claim and request for an equitable adjustment under the Contract Disputes Act, 41 U.S.C. 7101-7109, in the amount of $34,553.77, consisting of a subcontractor’s price for a change, plus 10% profit, 4% insurance, and 4% gross receipts tax, plus $9,655 for “Preparation Costs & Extended Overhead” and $2,745 for “Legal Fees.” The Postal Service Board of Contract Appeals ruled that Tip Top was entitled to recover $2,565. The Board ruled that Tip Top was not entitled to recover the balance of the amount claimed because it had failed to demonstrate that the costs at issue were incurred as a result of the change order. The Federal Circuit reversed and remanded, with directions to grant the appeal in its entirety. The ruling was based upon an error of law and not supported by substantial evidence. View "Tip Top Constr., Inc.v. Donahoe" on Justia Law

Zaloudek Grain Company held a workers' compensation policy with CompSource Oklahoma for approximately ten years prior to 2011. Zaloudek was required each year to provide payroll audit information to CompSource. The audit information was used to determine the proper premium for each year. CompSource sent a notice in late 2010 to Zaloudek requesting audit information. In January, 2011, Zaloudek's policy was renewed for all of 2011 through January 1, 2012. On January 18, 2011, CompSource sent another letter requesting Zaloudek provide the necessary payroll audit information, but Zaloudek was unresponsive. Subsequently, CompSource sent Zaloudek a notification to inform the company that the process of canceling its policy would begin if CompSource did not receive the audit information. The audit information was not provided; CompSource ultimately canceled the policy when Zaloudek ignored several subsequent requests. CompSource issued a refund for payments made under the policy. Later that summer, two teenage workers were seriously injured in the grain auger at Zaloudek's facility. CompSource did not accept the company's new insurance application because it was incomplete and was not signed by an owner of Zaloudek. Zaloudek sued a few weeks following the rejection of its application, asking for a judgment against CompSource for breach of contract and bad faith and further requested declaratory relief in the form of an order requiring CompSource to provide workers' compensation coverage. Zaloudek filed a motion for summary judgment claiming CompSource lacked legal justification for terminating its policy and requested orders to establish there was no lapse in coverage and requiring CompSource to provide coverage for its two injured employees. Zaloudek further requested a finding that CompSource was in breach of contract. CompSource moved for summary judgment, arguing Zaloudek was not covered at the time of the incident and its policy was properly canceled. Zaloudek filed a counter-motion for summary judgment asserting CompSource should be estopped from denying coverage because it retained premiums and acted in a manner toward Zaloudek consistent with continued coverage. The trial court issued an order dismissing Zaloudek's bad faith claim but left pending its claims for breach of contract and declaratory relief. CompSource appealed. After its review, the Supreme Court concluded that CompSource was authorized to cancel a policy for an insured's failure to participate in the audit. The Court remanded the case for further proceedings on the other contract issues raised. View "Zaloudek Grain Co. v. CompSource Oklahoma" on Justia Law

At issue in this case was whether the workers' compensation courts had the authority to hear a petition filed by Insured to determine whether Insurer had a duty to defend and indemnify Insured under a policy for workers' compensation insurance. Insurer moved to dismiss Insured's petition, arguing that the compensation judge did not have subject matter jurisdiction to hear the petition because it asserted a breach of contract claim rather than one arising under the workers' compensation laws. The compensation judge disagreed and denied Insurer's motion to dismiss. The workers' compensation court of appeals (WCCA) affirmed, concluding that Insured was seeking a declaration that its insurance coverage with Insurer was still "in effect," a question within the compensation judge's authority to decide. The Supreme Court affirmed, holding that the workers' compensation courts had jurisdiction to decide the issues presented in Insured's petition for declaration of insurance coverage, as the real nature of the claim was whether Insured's insurance coverage was in effect, a question that was within the authority of the compensation judge to answer. View "Giersdorf v. A & M Constr., Inc." on Justia Law

Appellant Jay Warren appealed an order that denied his Rule 55(c) and Rule 60(b)(1), SCRCP motions, as well as his independent motion to set aside a judgment sale. On appeal, he contested only the denial of his motion to set aside. Warren is a state bail bondsman, and Respondent Arrow Bonding Company is also in the bond business. Warren agreed to be responsible if a mutual client forfeited a surety bond issued by Respondent. In October 2006, Respondent obtained a $5,120.00 judgment against Warren after the client forfeited. In August 2007, the clerk issued a Judgment Execution, and on September 19, 2007, the sheriff issued an Execution Account Statement. In this statement, he reported receiving a $1,000 payment from Warren, from which he deducted his $52.50 fee, leaving $947.50 to be applied against the debt. After deducting the $947.50 and adding the interest accrued as of September 19, 2007, Warren's judgment debt stood at $4,705.15. In January 2008, Respondent brought an action to foreclose its judgment lien. Warren did not answer, and the clerk granted Respondent's motions, ordering entry of the default against Warren, and referring the matter to the Master-in-Equity. On the sales day, Warren went to the sheriff's office and tendered the amount due under the original judgment, not the amount then due in light of the accumulated interest and other fees. The Master issued a deed to Respondent, who bought all of Warren's properties, which were sold at the sale as a single lot, leaving a deficiency. Warren filed a motion to set aside the default order under Rule 55(c) and/or Rule 60(b), and to set aside the foreclosure deed. The Master denied all relief requested, and denied the request to reconsider his decision. Upon review of the matter, the Supreme Court concluded that the Master did not err in refusing to set aside the sale or by selling the properties as a single lot. View "Arrow Bonding Company v. Warren" on Justia Law