Latest 4 Cases This Week: Eskridge & Associates v. United States (Fed. Cir.), Restore Construction Co., Inc. v. Board of Education of Proviso ...

Bringing Home the Supply Chain

SAMUEL ESTREICHER, JONATHAN F. HARRIS

NYU law professors Samuel Estreicher and Jonathan F. Harris describe how the COVID-19 pandemic is forcing the United States to confront the problem of unchecked globalization. Estreicher and Harris argue that once the pandemic subsides, U.S. policymakers should, as a matter of national security, mandate that a minimum percentage of essential supplies be manufactured domestically.

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Unconstitutional Chaos: Abortion in the Time of COVID-19

JOANNA L. GROSSMAN, MARY ZIEGLER

SMU Dedman School of Law professor Joanna L. Grossman and Florida State University law professor Mary Ziegler discuss the abortion bans implemented in several states in response to the COVID-19 pandemic. Grossman and Ziegler explain why the bans are constitutional and comment on the connection between the legal challenges to those bans and the broader fight over abortion rights.

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Eskridge & Associates v. United States

Court: US Court of Appeals for the Federal Circuit

Docket: 19-1862

Opinion Date: April 15, 2020

Judge: Wallach

Areas of Law: Government Contracts

The Army sought to procure the services of certified registered nurse anesthetists for the Fort Bragg Army Medical Center. Eskridge bid but the solicitation was canceled. A new solicitation received 18 timely, complete proposals. Eskridge filed a pre-award protest with the Government Accountability Office (GAO), alleging that the Army “acted in bad faith” by failing to include language allegedly agreed-upon following the cancellation. Eskridge withdrew its protest after the Army responded. Eskridge’s bid was not ranked among the five lowest proposals. The Army awarded the contract to Ansible as the lowest-priced, technically acceptable proposal. Eskridge filed another protest. The Army indicated it would “better document the selection” and reviewed the 10 lowest-priced bidders on technical and past performance bases. Of the five technically acceptable bidders, Eskridge bid the highest total price. The Army awarded the Contract to Ansible. Eskridge filed a post-award protest. The GAO and the Claims Court dismissed Eskridge’s claims, finding Eskridge had no substantial chance of winning the Contract and that the claimed errors would affect each of the five lowest-priced, technically acceptable proposals equally. The Federal Circuit affirmed. Eskridge does not possess a direct economic interest. The relevant inquiry is whether the bidder “establish[ed] not only some significant error in the procurement process but also that there was a substantial chance it would have received the contract award but for that error.” The court found no error in the Army’s compensation realism analysis.

Restore Construction Co., Inc. v. Board of Education of Proviso Township High Schools District 209

Court: Supreme Court of Illinois

Citation: 2020 IL 125133

Opinion Date: April 16, 2020

Judge: Lloyd A. Karmeier

Areas of Law: Construction Law, Contracts, Education Law, Government Contracts

Restore was asked to mitigate and repair significant fire damage at Proviso East High School, having provided similar service to the District in the past. The District’s customary practice when contracting for repair and payment of losses covered by insurance was to proceed without a recorded vote of its Board. The fire loss was covered by insurance. The District’s superintendent executed contracts with Restore. The District was subject to the School District Financial Oversight Panel (FOP) and Emergency Financial Assistance Law (105 ILCS 5/1B-1) and the Financial Oversight Panel Law (105 ILCS 5/1H-1). The FOP’s chief fiscal officer attended construction meetings and approved numerous subcontracts, quotations, bids, sales orders, change orders, and invoices. Although there was no recorded vote, “a majority of the Proviso Board knew and informally approved" the work. Restore was paid by the insurers for all but $1,428,000. Restore sued, seeking recovery from the District based on quantum meruit. The District argued that it had no obligation to pay because the contracts had not been let out for bid and approved by a majority vote as required by the School Code (105 ILCS 5/1-1). The Illinois Supreme Court affirmed the reinstatement of the case following dismissal. The failure of a governmental unit to comply with required contracting methods is not fatal to a plaintiff’s right to recover based on quasi-contract or implied contract principles. The Board was subject to the FOP; the FOP was fully apprised of and approved the work. Any misconduct was on the part of the Board; allowing Restore to recover presents no “risk of a raid on the public treasury.”

AT&T Corp. v. Mississippi Department of Information Technology Services

Court: Supreme Court of Mississippi

Citation: 2019-CC-00353-SCT

Opinion Date: April 16, 2020

Judge: James W. Kitchens

Areas of Law: Communications Law, Government & Administrative Law, Government Contracts

The Mississippi Department of Information Technology Services (ITS) issued a Request for Proposals (RFP) for telecommunications services. After vendors responded, ITS selected the proposal submitted by Telepak Networks, Inc., d/b/a C Spire (C Spire) for a statewide voice and data network. AT&T Corp. (AT&T) protested the award, arguing that ITS’s award of the contract to C Spire was erroneous because C Spire’s proposal did not match the specifications set forth in the RFP. ITS denied AT&T’s challenge, and it appealed. The Chancery Court of the First Judicial District of Hinds County affirmed, finding that ITS’s award of the contract to C Spire was not arbitrary and capricious or unsupported by substantial evidence. AT&T appealed. After review, the Mississippi Supreme Court held that the ITS decision that C Spire’s proposal matched the RFP’s specifications was supported by substantial evidence and was not arbitrary and capricious. Therefore, we affirm.

Peterson v. Dep't of Revenue

Court: Washington Supreme Court

Docket: 97410-1

Opinion Date: April 16, 2020

Judge: Steven González

Areas of Law: Government & Administrative Law, Government Contracts, Zoning, Planning & Land Use

More than 70 years ago, two railroad companies helped the United States Atomic Energy Commission build a track to the Hanford Nuclear Reservation in return for the right to use the track without paying rent. After the nuclear reactors at Hanford were decommissioned, the United States transferred nearly 800 acres, including the track at issue, to the Port of Benton (Port), subject to existing agreements and potential reversion to the United States if certain conditions were not met. The Port continued to honor the agreements and operate the railroad. The Port’s decision not to charge rent was challenged by a taxpayer, Randolph Peterson, as an unconstitutional gift of public funds. This challenge was dismissed at summary judgment. After review of the trial court record, the Washington Supreme Court found no constitutional violation and affirmed dismissal.