Justia Government Contracts Opinion Summaries

Articles Posted in Kentucky Supreme Court
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The Supreme Court affirmed the decision of the court of appeals requiring Appellant to comply with a subpoena duces tecum issued to him by the Secretary of the Finance and Administration Cabinet (Secretary), holding that the subpoena powers of the Secretary extend to suspected violations of Kentucky's Model Procurement Code (KMPC) and that the Secretary has the power to subpoena non-government employees as part of an investigation into a possible violation of the KMPC.The Secretary issued a subpoena to Frank Lassiter seeking information to assist in an investigation into whether certain government contracts complied with the KMPC. Lassiter refused to comply with the subpoena, arguing that the Secretary's authority to issue subpoenas under Ky. Rev. Stat. Chapter 45 did not extend to investigations into potential KMPC violations and, regardless, did not allow him to subpoena non-government employees. The circuit court denied the Secretary's motion to compel Lassiter's compliance, finding that the Secretary subpoena power did not apply to investigations into possible violations of the KMPC. The court of appeals reversed. The Supreme Court affirmed, holding that the Secretary's subpoena power applies to investigations into possible violations of the KMPC. View "Lassiter v. Landrum" on Justia Law

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In this case related to the disbursement of Purdue Pharma funds, the Supreme Court reversed the court of appeals' grant of summary judgment for the Office of the Attorney General (OAG) and Dolt Thompson declaring that a contract was enforceable and a payment to Dolt, Thompson, Shepherd & Kinney, P.S.C. (Dolt Thompson) was proper, holding that the circuit court did not err.The then-attorney general filed a lawsuit against Purdue Pharma regarding the OxyContin epidemic. The OAG selected Dolt Thompson to assist in the Commonwealth's litigation against Purdue Pharma. After the OAG settled with Purdue Pharma it paid Dolt Thompson in part. The Legislature then passed a 2016 budget bill directing payment of attorney's fees and expenses in the Purdue Pharma case. The OAG filed a complaint seeking a declaration that the payment to Dolt Thompson was proper. The Finance Cabinet filed an action against Dolt Thompson. The circuit court consolidated the cases and entered summary judgment for the OAG and Dolt Thompson. The court of appeals reversed and ordered the circuit court to allow the Cabinet to conduct discovery. The Supreme Court reversed, holding that the Legislature acted within its authority in stating that the attorney's fees should be paid prior to any other disbursement of the Purdue Pharma funds. View "Dolt, Thompson, Shepherd & Conway, P.S.C." on Justia Law

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The Supreme Court affirmed the opinion of the court of appeals remanding this matter to the circuit court for entry of an order requiring Utility Management Group, LLC (UMG) to comply with the Open Records Act, Ky. Rev. Stat. 61.870-.884. The Pike County Fiscal Court made an Open Records request to UMG, which provided management and operational services to Mountain Water District, so that the Auditor of Public Accounts could determine the actual costs of the services UMG provided. UMG declined to produce the request documents, asserting that it was a “wholly private entity.” The Attorney General found UMG subject to the Open Records Act and required production. The circuit court, however, concluded that UMG had no disclosure obligation under the Act. The court of appeals reversed. The Supreme Court affirmed, holding (1) at the time of Pike County Fiscal Court’s Open Records Act request, UMG was a public agency subject to the Act; (2) the 2012 amendment to section 61.870(1)(h) does not apply retroactively to relieve UMG of its disclosure obligation; and (3) the challenged 1994 version of section 61.870(1)(h) was and is constitutional. View "Utility Management Group, LLC v. Pike County Fiscal Court" on Justia Law

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The Supreme Court affirmed the judgment of the circuit court affirming the district court’s dismissal of this action filed by Big Sandy Regional Jail Authority against the Lexington-Fayette Urban County Government seeking reimbursement for the cost of housing prisoners held pursuant to warrants issued by Fayette County courts. The district court dismissed the case after finding that the Urban County Government was entitled to sovereign immunity. The circuit court affirmed without addressing the issue of sovereign immunity, finding, rather, that the county of arrest controls responsibility for incarceration costs. The Supreme Court affirmed, but on different grounds, holding that the Urban County Government was not responsible for the costs of incarcerating prisoners not in its possession. View "Big Sandy Regional Jail Authority v. Lexington-Fayette Urban County Government" on Justia Law