Justia Government & Administrative Law Opinion Summaries
Articles Posted in Contracts
Kathy Heffernan, et al v. Missoula City Council, et al
The Missoula City Counsel, the City of Missoula, and the Mayor, (collectively "City") and Muth-Hilberry, LLC ("developer") appealed a district court determination that found that the City was arbitrary and capricious in approving a zoning and preliminary plat for a subdivision known as Sonata Park located in Rattlesnake Valley, Montana. At issue was whether neighbors, several parties opposed to the subdivision, and the North Duncan Drive Neighborhood Association, Inc. ("Association") had standing. Also at issue was whether the district court erred in striking affidavits filed by the developer and the City in connection with their motions for summary judgment. Further at issue was whether the 1989 Sunshine Agreement between the City and the developer's predecessor in interest superseded the City's growth policy. Finally at issue was whether the City's decision in Sonata Park was arbitrary, capricious, or unlawful. The court held that the neighbors had standing to sue in their own right and that the Association had associational standing to proceed on behalf of its members. The court also held that any error made by the district court in granting the neighbor's motion to strike the developer's affidavit was harmless. The court further held that the Sunlight Agreement did not supersede the City's growth policy where the Sunlight Agreement could be void ab initio and did not appear to guarantee certain density. The court finally held that substantial compliance was still valid and that a government body must substantially comply with its growth policy in making zoning decisions and that the City's decision to approve Sonata Park was arbitrary, capricious, and unlawful.
Dominion Resources, Inc. v. United States
The U.S. Department of Energy entered into standard contracts to accept spent nuclear fuel from utility companies by January 1998 and has not yet accepted delivery, resulting in suits by several nuclear utilities. The district court awarded Dominion damages. The Federal Circuit affirmed, first holding that the Nuclear Waste Policy Act, 42 U.S.C. 10222, permitted assignment by Dominion's predecessor, that the assignment complied with the Act and the contract, and that the assignment included the right to pre-assignment damages. The district court properly denied discovery on the government's claim that Dominion has benefited from its breach because it has not yet been required to pay a one-time fee for disposal of waste generated prior to 1983.
Energy Northwest v. United States
In 1983 the Department of Energy contracted to dispose of spent nuclear fuel from plaintiff's Columbia, Washington facility. The DOE failed to perform and, with its own temporary storage filling up, the plaintiff began work on its own permanent storage facility in 2002. The trial court award of $56.9 million included amounts for modifications to the temporary storage facility, indirect overhead, and financing costs. The Federal Circuit vacated. The plaintiff was entitled to damages for modifications only to the extent that it could prove that, but for the breach, those costs would not have been incurred; the trial court did not require the plaintiff to prove causation. The trial court properly included an award for indirect overhead calculated to a reasonable certainty. The government was entitled to sovereign immunity (28 U.S.C. 2516) with respect to the award of $6 million in interest; the contract did not waive immunity.