Justia Government Contracts Opinion Summaries

The Supreme Court reversed the decision of the court of appeals reversing the judgment of the district court granting the City of Topeka's motion to dismiss this breach of contract suit, holding that dismissal was proper.The City entered into an agreement with Plaintiffs, private owners, to assume full ownership of a motor speedway. The rights to the speedway were to be paid through sales tax and revenue (STAR) bonds. When the City decided not to fulfill the agreement Plaintiffs brought this action claiming that the City breached the parties' contract. The district court granted the City's motion to dismiss, concluding that the agreement was an exercise of a governmental or legislative function and binding on successive City Councils. The court of appeals reversed, concluding that the government act was proprietary. The Supreme Court reversed, holding that the City Council's decision to enter into the contract and move forward on issuing STAR bonds was a governmental decision, and the newly elected City Council was under no obligation to carry out the policies of its predecessor. View "Jayhawk Racing Properties v. City of Topeka" on Justia Law