Justia Government Contracts Opinion Summaries

At issue in this case was a claim for damages relating to a drilling contract Petitioner Elcon Construction and Respondent Eastern Washington University. Elcon alleged tort and contract claims. The contract claims were resolved by arbitration. In dismissing the tort claims, the trial court applied the independent duty rule formerly known as the "economic loss rule," which the Court of Appeals similarly applied in affirming. Upon review, the Supreme Court concluded the trial court and Court of Appeals misapplied the independent duty doctrine to bar Elcon's tort claims in this case. The Court found Elcon's claims failed factually. Viewing the facts and reasonable inferences in the light most favorable to Elcon, no genuine issues of material fact existed with respect to Elcon's fraud in the inducement or tortious interference claims. The Court affirmed on different grounds reached by the trial and appeals courts.View "Elcon Constr., Inc. v. E. Wash. Univ." on Justia Law

Roxco, Ltd., was hired as the general contractor for several public-construction projects for the State of Mississippi, including four building projects at the University of Mississippi, Jackson State University, and Alcorn State University. State law requires that a certain percentage of the cost of construction be retained to ensure completion. However, Mississippi Code Section 31-5-15 (Rev. 2010) allows the contractor to access that retainage by depositing with the State other acceptable security. Pursuant to Section 31-5-15, Roxco substituted securities valued at $1,055,000, deposited in a safekeeping account at Trustmark National Bank. Upon being notified of Roxco's default, the State instructed Trustmark to transfer the funds from the treasury bills into the state treasury account. By letter, Roxco directed Trustmark not to transfer the funds from the treasury bills to the State's account. Notwithstanding Roxco's letter, Trustmark deposited the funds into the State's account. Roxco filed suit against Trustmark for breach of contract and conversion. Trustmark argued that Section 31-5-15 permitted the release of the funds in the safekeeping account. A jury found in favor of Roxco and awarded $3,720,000 in damages. Aggrieved, Trustmark appealed. Finding that the trial court should have granted the motion for judgment notwithstanding the verdict, the Supreme Court reversed and remanded for further proceedings.View "Trustmark National Bank v. Roxco Ltd." on Justia Law

In this consolidated appeal, the court construed the payment obligations of municipalities participating in G.L.c. 41, section 108L, (Quinn Bill), a local statute establishing a career incentive pay program for police officers. The underlying case arose when the Commonwealth, facing budgetary constraints, substantially cut reimbursements. Plaintiffs subsequently contended that clauses in the collective bargaining agreements (CBA) impermissibly conflict with the statute, which they viewed as requiring the city to pay 100% of benefits irrespective of reimbursement. The court held that the CBAs did not conflict with the statute and were valid. Section 108L required only that municipalities pay one-half the amounts specified in the payment provision, plus any amount actually received from the Commonwealth. Municipalities could agree to pay more, but the statute did not require it. Therefore, the cases were remanded to the county court, where the single justice was directed to issue a declaration stating that, with respect to section 108L, the CBAs between the city and the various police unions were valid and enforceable.View "Adams v. City of Boston" on Justia Law

In this appeal the Supreme Court was asked to determine whether the parties' indemnity agreement clearly and unequivocally indemnified the Snohomish County Public Transportation Benefit Area Corporation (doing business as Community Transit) for losses resulting from its own negligence. Upon review, the Court concluded that the language of the agreement, and in particular language providing that indemnity would not be triggered if losses resulted from the sole negligence of Community Transit, clearly and unequivocally evidenced the parties' intent that the indemnitor, FirstGroup America, Inc. (doing business as First Transit) indemnify Community Transit for losses that resulted from Community Transit's own negligence. The Court reversed the Court of Appeals' decision to the contrary and remanded the case to the trial court for further proceedings.View "Snohomish County Pub. Transp. Benefit Area Corp. v. FirstGroup Am., Inc." on Justia Law

Defendant, a school district, leased portable classrooms from plaintiff under contracts including penalties for early cancellation or default. Under the Downstate School Finance Authority for Elementary Districts Law (105 ILCS 5/1F-1) the state later created the Authority to manage the District's finances. The Authority canceled the leases before expiration, but did not authorize payment of the cancellation fees. The trial court granted summary judgment, finding it was legally impossible for the District to pay the cancellation fees, but also finding that the Authority had to comply with the cancellation terms of the leasing contracts. The appellate court affirmed the judgment in favor of the District on the cancellation fees and vacated as moot the declaratory judgment in favor of plaintiff. The Illinois Supreme Court concluded that the legislature intended the Act to permit the Authority to cancel a school district's contract with a third party, but that cancellation must be consistent with the contractual terms agreed to by the school district and the third party. The Authority can cancel the leasing contracts, but must pay the contractual fees for early cancellation. View "Innovative Modular Solutions v. Hazel Crest Sch. Dist. 152.5" on Justia Law

The city of Tacoma has franchise agreements with Pierce County and the cities of Fircrest, University Place, and Federal Way (Municipalities) to provide them with water services. The issue before the Supreme Court was whether those franchise agreements required Tacoma to both maintain fire hydrants and bear the maintenance costs of those hydrants. Tacoma raised questions about the impact of the agreements' indemnification clauses had on this dispute. Upon review, the Supreme Court held that the franchise agreements contractually required Tacoma to provide hydrants to the Municipalities, and that the indemnification provisions did not preclude this case.View "City of Tacoma v. City of Bonney Lake" on Justia Law

Plaintiff-Appellant Dr. John Noak was dismissed as the medical director for Prison Health Services, Inc. (PHS). He appealed the district court's grant of summary judgment in favor of the Idaho Department of Correction (IDOC) on claims of breach of an implied covenant of good faith, intentional and negligent infliction of emotional distress, defamation, and intentional interference with contract. A 2004 investigation into how Plaintiff treated a female inmate at an IDOC facility lead to IDOC demanding that PHS replace Plaintiff as medical director. Finding no error in the district court's judgment, the Supreme Court affirmed the grant of summary judgment in favor of IDOC. View "Noak v. Dept. of Corrections" on Justia Law

Appellant, a group of taxpayers in Searcy County known as the Searcy County Counsel for Ethical Government, filed a complaint alleging that Appellee, a county judge, had unlawfully sold equipment belonging to the county to Opal and Clifford Aday and requested a declaratory judgment that the judge had neglected the official duty of his office and that the sale was null and void. The complaint named the judge and Opal Aday as defendants. The district court granted summary judgment for the judge, finding that the judge complied with Ark. Code Ann. 14-16-106(c) in the sale of the equipment. The Supreme Court dismissed Appellant's appeal, holding that although the summary judgment order purported to dismiss Appellant's complaint, it failed to dispose of the claim against Opal Aday, and therefore, the order was not a final, appealable order and the Court was barred from considering the appeal.View "Searcy County Counsel for Ethical Gov't v. Hinchey" on Justia Law

Roxco, Ltd. was hired as the general contractor for several public-construction projects for the State of Mississippi, including four building projects at the University of Mississippi, Jackson State University, and Alcorn State University. Pursuant to Section 31-5-15, in order to access the retainage on its state-construction projects, Roxco substituted securities valued at $1,055,000. These securities were deposited in a safekeeping account at Trustmark National Bank. Upon being notified of Roxco’s default, the State instructed Trustmark to transfer the funds from the treasury bills into the state treasury account. By letter, Roxco directed Trustmark not to transfer the funds from the treasury bills to the State’s account. Notwithstanding Roxco’s letter, Trustmark deposited the funds into the State’s account. Roxco filed suit against Trustmark for breach of contract and conversion. Trustmark argued that Section 31-5-15 permitted the release of the funds in the safekeeping account. A jury found in favor of Roxco and awarded $3,720,000 in damages. Aggrieved, Trustmark filed this appeal. Finding that the trial court should have granted Trustmark's motion for judgment notwithstanding the verdict, the Supreme Court reversed and remanded the case for further proceedings. View "Trustmark National Bank v. Roxco Ltd." on Justia Law

Plaintiff moved for an expedited hearing on an application for a preliminary injunction that would block the University of Connecticut from proceeding any further with a request for proposal. Plaintiff contended that the University was soliciting proposals in violation of fair bidding requirements imposed by Connecticut law and the University's purchasing regulations. The court denied the motion and held that, under the circumstances, comity dictated that a Connecticut court should have the first opportunity to consider a matter of paramount importance to that state.View "TA Instruments-Waters, LLC v. University of Connecticut" on Justia Law