Justia Contracts Opinion Summaries

Plaintiff Dennis Ponte demanded defendant County of Calaveras (County) to pay him over $150,000 to reimburse him for work purportedly performed on the County’s behalf pursuant to an oral contract. The contract did not contain any fixed payment, and no bid was submitted nor approved pursuant to relevant county ordinances governing public contracts. Ponte disregarded opportunities to abandon his claims after the County provided him with pertinent legal authority demonstrating that his claims lacked merit. After multiple sustained demurrers, the trial court granted summary judgment to the County on Ponte’s third amended complaint. The court later awarded substantial attorney fees, finding Ponte’s claims, including those based on promissory estoppel, were not brought or maintained in both subjective and objective good faith. Ponte appealed. Finding no reversible error, the Court of Appeal affirmed. View "Ponte v. County of Calaveras" on Justia Law

In a 2005 Cooperation and Option Agreement to facilitate Russell's construction and operation of the Energy Center, a natural gas-fired, combined cycle electric generating facility in Hayward, the city granted Russell an option to purchase 12.5 acres of city-owned land as the Energy Center's site and promised to help Russell obtain permits, approvals, and water treatment services. Russell conveyed a 3.5-acre parcel to the city. The Agreement's “Payments Clause” prohibited the city from imposing any taxes on the “development, construction, ownership and operation” of the Energy Center except taxes tethered to real estate ownership. In 2009, Hayward voters approved an ordinance that imposes “a tax upon every person using electricity in the City. … at the rate of five and one-half percent (5.5%) of the charges made for such electricity” with a similar provision regarding gas usage. Russell began building the Energy Center in 2010. In 2011, the city informed Russell it must pay the utility tax. The Energy Center is operational.The court of appeal affirmed a holding that the Payments Clause was unenforceable as violating California Constitution article XIII, section 31, which provides “[t]he power to tax may not be surrendered or suspended by grant or contract.” Russell may amend its complaint to allege a quasi-contractual restitution claim. View "Russell City Energy Co. v. City of Hayward" on Justia Law

LFD operates a Lake Cumberland, Kentucky marina under a lease from the Army Corps of Engineers, covering approximately 130 acres of water and 36 acres of land. The Lease states: The right is reserved to the United States ... to enter upon the premises at any time and for any purpose necessary or convenient ... to flood the premises; to manipulate the level of the lake or pool in any manner whatsoever; and/or to make any other use of the lands as may be necessary in connection with project purposes, and the Lessee shall have no claim for damages. By 2007, Wolf Creek Dam, which created the lake, was at a high risk of failure; the Corps began lowering the lake's water level. The Corps returned the lake to its previous levels in 2014, when restoration was complete. LFD submitted a certified claim to the District Engineer, asserting $4,000,000 in damages. The Federal Circuit affirmed rejection of the claim. While the Lease is a contract for “the disposal of personal property” under 41 U.S.C. 7102(a)(4), giving the court jurisdiction, LFD did not properly present its reformation claim to the District Engineer. Rejecting a breach of contract claim, the court stated the Lease granted the Corps the right to manipulate the level of the lake in any manner whatsoever. View "Lee's Ford Dock, Inc. v. Secretary of the Army" on Justia Law

This case presented for the Washington Supreme Court's review an award of attorney fees against five surety companies following a jury trial for breach of contract in a public works project. The parties litigated the issue of whether three construction firms had defaulted on a contract, thus triggering coverage under a performance bond issued by the surety companies. At issue was whether the existence of a statutory fee provision barred equitable remedies available at common law for coverage disputes and whether the trial court correctly determined that segregation between covered and uncovered fees was impossible. The Court of Appeals affirmed the award of Olympic Steamship fees and held that the trial court did not abuse its discretion in determining that the fees could not be segregated. Finding no reversible error in that judgment, the Washington Supreme Court affirmed. View "King County v. Vinci Constr. Grands Projets" on Justia Law

SJJC Aviation is a fixed base operator (FBO) that operates a full-service facility at the Norman Y. Mineta San Jose International Airport, which is owned by the city. In 2012 the city addressed a plan to add a second FBO on the west side of the airport and issued a request for proposals “for the development and operation of aeronautical services facilities to serve general aviation activities at the [airport].” The city awarded the lease and operating agreement to Signature and its prospective subtenant, BCH, rejecting SJJC's bid as nonresponsive. SJJC filed suit, contending that the “flawed” process of soliciting bids for the lease should be set aside. The court of appeal affirmed dismissal of the suit. SJJC lost its own opportunity to compete for the new airport FBO by submitting a manifestly nonresponsive bid. SJJC is in reality complaining of past acts by the city and is seeking a remedy that will allow it another opportunity to submit a responsive proposal. View "SJJC Aviation Services v. City of San Jose" on Justia Law

The Federal Circuit affirmed summary judgment in favor of the United States in Northwest Title Agency’s (NWTA) suit based on contracts, under which NWTA provided closing services for homes owned by the Department of Housing and Urban Development (HUD). The courts concluded that the contracts unambiguously preclude NWTA from charging additional closing fees and declined to consider the affidavit of industry practice submitted by NWTA. The fee prohibition does not conflict with the buyers’ rights, as stated in the contracts, to retain a title company of their own choosing. View "Northwest Title Agency, Inc. v. United States" on Justia Law

BBII filed suit against the City for breach of contract, alleging that the City unlawfully assessed liquidated damages against the company for failure to complete a construction project on time. This case involved two public works contracts entered into by the parties, in which BBII agreed to build certain parts of a wastewater treatment system aimed at reducing pollution in the Chesapeake Bay. The court agreed with the district court that BBII is not excused from the normal requirement of administrative exhaustion under Maryland law. The court rejected BBII's remaining claims and affirmed the district court's dismissal for lack of subject matter jurisdiction. View "Balfour Beatty Infrastructure v. Mayor and City Council of Baltimore" on Justia Law

In bidding to strip and repaint the Commodore Barry Bridge, the Delaware River Port Authority (DRPA) rejected the lowest bidder, Alpha, as not a “responsible” contractor under its guidelines because Alpha failed to remit accident experience forms (OSHA 300) and insurance data (Experience Modification Factors) in its bid package. DRPA also declared that Corcon was actually the lowest bidder because of a “miscalculation” that DRPA perceived in Corcon’s bid. DRPA awarded the contract to Corcon. After its bid protest was denied, Alpha filed suit, seeking an injunction. The district court held a trial, concluded that DRPA acted arbitrarily and capriciously, and directed DRPA to award the contract to Alpha. The Third Circuit agreed that DRPA acted arbitrarily and capriciously, but concluded that the court abused its discretion by directing that the contract be awarded to Alpha. DRPA did not establish a rational basis under its policies for labeling Alpha “not responsible” and ”the decision to modify Corcon’s bid appeared out of thin air.” DRPA’s Board of Commissioners gave virtually no attention to Alpha’s protest. Alpha should be restored to competition; DRPA should evaluate Alpha’s bid and affirmatively determine, per its guidelines, whether Alpha, the lowest bidder, is a “responsible” contractor. View "Alpha Painting & Construction Co., Inc. v. Delaware River Port Authority" on Justia Law

The Defense Supply Center Philadelphia (DSCP), a sub-agency of the Defense Logistics Agency, issued a solicitation for an Indefinite-Delivery/Indefinite-Quantity commercial item contract to provide food and non-food products to customers, including the military, in three overseas zones. In May 2003, DSCP awarded a contract to Agility to supply “Full Line Food and Non-Food Distribution” to authorized personnel in Kuwait and Qatar. After many modifications, in December 2005, Agility submitted a Request for Equitable Adjustment for $13.1 million related to trucks being held in Iraq by the government for longer than 29 days. In April 2007, the government’s contracting officer denied Agility’s claim. The Armed Services Board of Contract Appeals denied Agility’s appeal in August 2015, finding that Agility had accepted all risks associated with delays beyond 29 days. The Board stated that it “need not decide whether the government constructively changed contract performance or whether it breached its implied duty of cooperation” because “whether the government breached the contract comes down to contract interpretation.” The Federal Circuit affirmed-in-part, agreeing that the government did not breach the express terms of the contract or a later agreement to consider exceptions, but finding that the Board erred when it concluded that it “need not decide” Agility’s implied duty and constructive change claims. View "Agility Public Warehousing Co. KSCP v. Mattis" on Justia Law

The property owners, participants in the “Section 8” federal rental assistance program (42 U.S.C. 1437f(a)), sued the Wisconsin Housing and Economic Development Authority for allegedly breaching the contracts that governed payments to the owners under the program, by failing to approve automatic rent increases for certain years, by requiring the owners to submit comparability studies in order to receive increases, and by arbitrarily reducing the increases for non-turnover units by one percent. Because Wisconsin Housing receives all of its Section 8 funding from the U.S. Department of Housing and Urban Development (HUD), the Authority filed a third-party breach of contract claim against HUD. The district court granted summary judgment in favor of Wisconsin Housing and dismissed the claims against HUD as moot. The Seventh Circuit affirmed, noting that the owners’ Section 8 contracts were renewed after the challenged requirements became part of the program. “The doctrine of disproportionate forfeiture simply does not apply,” and Wisconsin Housing did not breach any contracts by requiring rent comparability studies in certain circumstances or by applying a one percent reduction for non-turnover units. View "Evergreen Square of Cudahy v. Wisconsin Housing & Economic Development Authority" on Justia Law