Latest 2 Cases: McDonald v. Fidelity & Deposit Co. of Maryland (Construction Law), Utah Department of Transportation v. Target Corp. (Real Estate ...

Seila Law LLC v. Consumer Financial Protection Bureau: The Supreme Court Considers Whether an Independent Agency with a Single Director Who Can Be Removed Only “For Cause” is Constitutional

RODGER CITRON

Rodger Citron, Associate Dean for Research & Scholarship and Professor of Law at Touro Law, comments on a case in which the U.S. Supreme Court will hear argument this week that presents the question whether an independent agency with a single director who can be removed only “for cause” violates the separation of powers principle enshrined in the Constitution. Citron notes that the decision to hear the case is unusual in that there is no conflict among the federal appeals courts, but he points out that that the government’s support of the cert. petition and then-Judge Brett Kavanaugh’s dissent on the issue when it came before the D.C. Circuit likely helped the present case come before the Court.

Read More

McDonald v. Fidelity & Deposit Co. of Maryland

Citation: 2020 UT 11

Opinion Date: February 28, 2020

Judge: Thomas R. Lee

Areas of Law: Construction Law, Government Contracts, Labor & Employment Law

The Supreme Court reversed the decision of the district court granting summary judgment in favor of Plaintiffs in this action seeking to recover delinquent contributions to various trust funds for construction on a state construction project, holding that the right of action under a payment bond statute extends to any amount due an employee, meaning any amount that is traceable specifically to an employee. One of the subcontractors hired to work on the project failed to make contributions to various trust funds for its employees' work on the project, as required by trust agreements and a collective bargaining agreement. The trusts (Plaintiffs) sought to recover the delinquent contributions from the public payment bond associated with the project by suing Defendant, the surety for the payment bond. The district court granted summary judgment for Plaintiffs. On appeal, the parties disputed whether Utah Code 63G-6-505(4) limits the right of action on a payment bond to amounts due to an employee or encompasses claims for any amounts due for an employee or on the employee's behalf. The Supreme Court reversed, holding that the right of action under the public payment bond statute contemplates recovery of any specific benefit that is due a person in the sense of being traceable to that person.

Utah Department of Transportation v. Target Corp.

Citation: 2020 UT 10

Opinion Date: February 28, 2020

Judge: Thomas R. Lee

Areas of Law: Real Estate & Property Law

In this action brought by Claimants seeking recovery for physical takings as well as severance damages for their property's decrease in market value after the Utah Department of Transportation (UDOT) condemned portions of their land the Supreme Court affirmed the conclusion of the court of appeals upholding the jury's verdict awarding claimants $2.3 million in severance damages, holding that the jury's award of severance damages was appropriate. The UDOT projects involved the reconstruction of a freeway interchange near Claimants' property. UDOT's condemnation of a portion of the property owned by Claimants interfered with both the property's visibility and its convenient "right-out" exits that provided access to the freeway. The jury awarded $2.3 million in severance damages. The court of appeals affirmed. The Supreme Court affirmed, holding that the severance damages awarded were appropriate because Claimants put on adequate evidence that their damages were caused by UDOT's construction of an improvement in the form of the new interchange.