Justia Construction Law Opinion Summaries

A certified question of law from the U.S. District Court for the District of Idaho was presented to the Idaho Supreme Court. Karen White and her development company, Elkhorn, LLC, sought to recover $166,496 paid to Valley County for "capital investments for roads in the vicinity of [their] White Cloud development." Phase I of White Cloud was completed and it was undisputed by the parties that the tax monies paid for Phase I were used by the County to complete capital investments for roads in the vicinity of the White Cloud development. The County conceded that it did not adopt an impact fee ordinance or administrative procedures for the impact fee process as required by the Idaho Development Impact Fees Act (IDIFA). The County also conceded it did not enact an IDIFA-compliant ordinance, because, at the time, the County believed in good faith that none was required. Plaintiff filed suit against the County claiming that the road development fee imposed by the County as a condition for approval of the White Cloud project violated Idaho state law and deprived Plaintiff of due process under both the federal and Idaho constitutions. In her Second Amended Complaint, Plaintiff raised two claims for relief. The first claim for relief alleged that “Valley County’s practice of requiring developers to enter into a Road Development Agreement ("RDA," or any similar written agreement) solely for the purpose of forcing developers to pay money for its proportionate share of road improvement costs attributable to traffic generated by their development is a disguised impact fee, is illegal and therefore should be enjoined." The first claim for relief also alleged that, because the County failed to enact an impact fee ordinance under IDIFA, the imposition of the road development fees constituted an unauthorized tax. Plaintiff’s second claim for relief alleged that the County’s imposition of the road development fee constituted a taking under the federal and Idaho constitutions. The County argued Plaintiff voluntarily agreed to pay the RDA monies. Plaintiff denies that the payment was voluntary since it was required to obtain the final plat approval. The issue the federal district court presented to the Idaho Supreme Court centered on when the limitations period commences for statutory remedies made available under Idaho law to obtain a refund of an illegal county tax. The Court answered that the limitations period for statutory remedies made available under Idaho law to obtain a refund of an illegal county tax commences upon payment of the tax. View "White v. Valley County" on Justia Law

Carnell, a "minority-owned" corporation, filed suit against the Housing Authority and Blaine based on claims of race discrimination, retaliation, and breach of contract. The court held that a corporation can acquire a racial identity and establish standing to seek a remedy for alleged race discrimination under Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d, but that the district court properly dismissed one of the defendants from liability on plaintiff's race discrimination claims; the district court abused its discretion in permitting the use of particular impeachment evidence, which should have been excluded as unfairly prejudicial under Federal Rule of Evidence 403; and the district court properly reduced certain damages awarded to plaintiff on its contract claims, but decided that the strict notice requirements of the Virginia Public Procurement Act, Virginia Code 2.2-4300 through 4377, required the court to narrow further the scope of recoverable contract damages. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings.View "Carnell Construction Corp. v. Danville RHA" on Justia Law

The Iowa Department of Transportation (IDOT) hired a general contractor, which was a “targeted small business” (TSB), for two public construction contracts. The general contractor subcontracted with three subcontractors, which the general contractor failed to pay in full. The subcontractors sued IDOT and the general contractor. The district court granted IDOT’s motion to dismiss and entered default judgments against the general contractor, ruling that, in absence of a bond, the subcontractors’ remedy against the state was limited to the funds IDOT retained on its contract with the general contractor. The subcontractors appealed, arguing that Iowa Code 573.2, the statute that governs subcontractors’ remedies for unpaid work on public improvements when the state waives the performance bond for a general contractor that is a TSB, allowed broader recovery rights and required IDOT to step into the TSB’s shoes to pay the balances owed them. The Supreme Court reversed, holding that section 573.2 operates as a waiver of sovereign immunity that allows subcontractors to recover from IDOT the unpaid balances TSBs owe for work on public improvements. Remanded.View "Star Equip., Ltd. v. State" on Justia Law

In 1983, Appellant, the owner and chief executive officer of an asphalt company, pled guilty to violating the Sherman Antitrust Act for unlawfully bidding on state highway construction contracts. In order to have his company's privilege of bidding on new contracts reinstated, Appellant agreed to cooperate with the Attorney General's (AG) investigation and proffered information pertaining to Appellant's involvement in a scheme to "rig" bids for highway construction contracts with the Kentucky Department of Transportation. In 2009, reporters for several newspapers submitted an Open Records Act (ORA) request to have the proffer disclosed. When Appellant learned the AG intended to release the proper, Appellant brought this action against the AG and ORA reporters seeking to have the release enjoined under the privacy exemption or the law enforcement exemption to the ORA. In 2011, the trial court ruled that the proffer should be released to the ORA requestors. The court of appeals affirmed. The Supreme Court affirmed, holding (1) Appellant did not have standing to invoke the law enforcement exemption provision to the ORA; and (2) matters of sufficient public interest warranted an invasion of Appellant's limited privacy interest in keeping his proffer from being disclosed.View "Lawson v. Office of Attorney Gen." on Justia Law

Hard Hat Workforce Solutions, LLC (Hard Hat) appealed a circuit court order granting summary judgment in favor of Great American Insurance Company (GAI). Hard Hat argued it was entitled to make a claim against a payment bond GAI issued on a construction project. The threshold issue in this case was whether Hard Hat's bond claim must comply with section 29-5-440's "notice of furnishing" provision. The Supreme Court found it did not: three e-mails Hard Hat sent to a subcontractor, Walker White, created an issue of fact as to whether Hard Hat satisfied section 29-5-440's notice provisions. View "Hard Hat Workforce v. Mechanical HVAC" on Justia Law

John Lanier appealed the denial of his motion to alter, amend, or vacate a judgment, and for relief from the judgment. Lanier's motion was filed after plaintiff McMath Construction, Inc. filed a "Notice of Filing of Foreign Judgment" pursuant to the Uniform Enforcement of Foreign Judgments Act ("the UEFJA"). After careful consideration, the Alabama Supreme Court concluded that under Louisiana law (the foreign jurisdiction), McMath did not properly serve Lanier. Therefore, a preliminary default judgment and the Louisiana judgment were void. Because the Louisiana judgment was void, the trial court erred when it denied Lanier's motion for relief from judgment. Accordingly, the Supreme Court reversed the trial court and remanded this case for further proceedings.View "Lanier v. McMath Construction, Inc. " on Justia Law

The contract between the general contractor and subcontractor provided for arbitration pursuant to the Federal Arbitration Act. When a complaint was filed, the general contractor Appellant Sean Barnes and property owner Appellant Wando E. sought to enforce the construction contract's arbitration clause. The trial court refused to compel arbitration on the basis that the contract did not sufficiently impact interstate commerce. Upon review, the Supreme Court found the trial court erred in finding the parties' transaction had an insufficient nexus to interstate commerce and reversed.View "Cape Romain v. Wando E., LLC" on Justia Law

Musson Brothers, Inc. was conducting sewer removal and installation as a contractor for the Wisconsin Department of Transportation (DOT) when Mark Showers' property was flooded. Showers filed a complaint against Musson and the City alleging that the two entities were jointly and severally liable for the negligent acts or omissions that caused Showers' building to flood. The circuit court granted summary judgment for the City and Musson, finding that the entities were entitled to governmental immunity. The court of appeals affirmed the summary judgment for Musson, finding that Musson was entitled to governmental contractor immunity as a statutory "agent" under Wis. Stat. 893.80(4). The Supreme Court reversed, holding (1) Musson failed to show it was acting as a governmental entity's agent for purposes of the alleged injury-causing conduct because it was not acting pursuant to "reasonably precise specifications" as required under section 893.80(4); and (2) in asserting the defense of immunity Musson failed to assert that the acts for which it claimed immunity were "acts done in the exercise of legislative, quasi-legislative, judicial or quasi-judicial functions" as required under section 893.80(4). Remanded.View "Showers Appraisals, LLC v. Musson Bros., Inc. " on Justia Law

Rocky Mountain and American Fuels filed two separate actions against CARB, contending that the Low Carbon Fuel Standard, Cal. Code Regs. tit. 17, 95480-90, violated the dormant Commerce Clause and was preempted by Section 211(o) of the Clean Air Act, 42 U.S.C. 7545(o), known as the federal Renewable Fuel Standard (RFS). The court held that the Fuel Standard's regulation of ethanol did not facially discriminate against out-of-state commerce, and its initial crude-oil provisions (2011 Provisions) did not discriminate against out-of-state crude oil in purpose or practical effect. The court also held that the Fuel Standard did not violate the dormant Commerce Clause's prohibition on extraterritorial regulation. The court vacated the preliminary injunction and remanded to the district court for further considerations under Pike v. Bruce Church, Inc. View "Rocky Mountain Farmers Union v. Corey" on Justia Law

Plaintiff was a construction supply business that entered into a dispute with City over a project upgrading City's wastewater treatment facility. After City excluded Plaintiff from its list of preapproved material suppliers, Plaintiff filed this action seeking a declaration that City's preapproval process violated Iowa's public construction bidding statute and constitutional guarantees of equal protection and due process. In addition, Plaintiff sought relief under the Open Records Act, claiming that City's significant delay in responding to Plaintiff's open records request violated the Open Records Act. The district court rejected each of Plaintiff's claims. The Supreme Court (1) affirmed the judgment dismissing Plaintiff's public biding and constitutional claims, as (i) Plaintiff lacked standing to challenge City's preapproval process, and (ii) Plaintiff's constitutional claims failed on the merits; and (2) reversed the district court's ruling denying Plaintiff relief under the open records law, as City's substantial and inadequately explained delay in responding to Plaintiff's open records request violated the law. View "Horsfield Materials, Inc. v. City of Dyersville" on Justia Law