Allied Construction Industries v. City of Cincinnati

214 F. Supp. 3d 653, 62 Employee Benefits Cas. (BNA) 1813, 2016 U.S. Dist. LEXIS 135758, 2016 WL 5661674
CourtDistrict Court, S.D. Ohio
DecidedSeptember 30, 2016
DocketCase No.: 1:14cv450
StatusPublished

This text of 214 F. Supp. 3d 653 (Allied Construction Industries v. City of Cincinnati) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Construction Industries v. City of Cincinnati, 214 F. Supp. 3d 653, 62 Employee Benefits Cas. (BNA) 1813, 2016 U.S. Dist. LEXIS 135758, 2016 WL 5661674 (S.D. Ohio 2016).

Opinion

ORDER

Michael R. Barrett, Judge

This matter is before the Court on: 1) Plaintiffs Motion for Summary Judgment (Doc. 52); and 2) Defendant’s Motion for Summary Judgment (hereinafter referred to as the “City”) (Doc. 53); 3) Intervenor Local 265’s Motion for Summary Judgment (“Local 265”) (Doc. 55), 4) Local 265’s Motion to Strike (Doc. 65); 5) Defendant’s Motion to Strike (Doc. 74), and the responsive memoranda thereto. This matter is now ripe for review.

I. FACTUAL OVERVIEW

The facts of this case are largely undisputed. Plaintiff Allied Construction Industries (“ACI”) is a not-for-profit trade association comprised of over 500 member companies who employ more than 25,000 individuals throughout the Greater Cincinnati area. (Doc. 52-2, PagelD 421, ¶ 4). Its members include general contractors, subcontractors, architects, engineers, developers, material suppliers and service providers to the commercial construction industry, proving construction services for both public and private projects in southwest Ohio. (Id., PagelD 421-22, ¶4). Its members include both union and open-shop contractors. Id.

In 2012, The City of Cincinnati enacted CMC Chapter 320, commonly referred to as the Responsible Bidder Ordinance (“RBO”); the RBO was amended to its current version in May 2013. Relevant to this case, the RBO affects the award of construction contracts for Greater Cincinnati Water works (“GCWW”) and Metropolitan Sewer District of Greater Cincinnati (“MSD”) projects valued over $400,000. ACI argues the Supremacy Clause, U.S.C.A. Const. Art. VI § 2, and the preemption provision of the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1144(a), prohibit the application [657]*657of three provisions of the City’s RBO when awarding its water works construction contracts. The three pertinent provisions concern apprenticeship requirements, the pre-apprenticeship training fund, and two of the lowest-and-best bidder factors.

The apprenticeship requirements in Section 320-5 of the CMC require bidders and the bidders’ subcontractors to participate in an apprenticeship program for the primary apprenticeable occupation on the project that has graduated at least one apprentice from the apprenticeship program for each of the past five years. CMC 320-5. The apprenticeship requirement is inapplicable, however, a) if the construction contract is less than $400,000, and b) to a subcontractor that is a registered small business enterprise with the MSD or is a small business enterprise certified by the City, if the value of the subcontract with that subcontractor is under $250,000. CMC 320-5, 320-1-C1.

The pre-apprenticeship training fund provision . in Section 320-7 of the CMC requires contractors1 on GCWW and MSD projects to pay $.10 per hour per worker “for the purpose of funding qualified pre-apprenticeship programs that will create a pipeline of opportunities from recruitment to placement to retention.” CMC 320-7. The payment “shall go into MSDGC Fund 701 where the project is managed by MSDGC and into water works Fund 101 where the project is managed by water works.” Id. The payments, however, may “not be taken from the fringe benefits of the contractor’s employees.” Id.

The two lowest-and-best bidder factors in Sections 320-3(j) and (k) of the CMC require bidders on Cincinnati GCWW projects and MSD projects to certify whether they provide a health care plan and a pension or retirement program to their employees. CMC 320-3(j), (k). Those provisions require that the contributions “be part of the employee’s regular compensation and not merely part of the employee’s compensation during the period of time for which the employee is performing work on the project.” CMC 320-3(j), (k). Those certifications are factors considered by the City in determining the lowest and best bidder for a construction contract. CMC 320-3.

A bidder not in compliance with these provisions will not be awarded water works construction contracts, as such a bid is considered unresponsive. (Doc. 52-2, Pa-gelD 423, ¶ 16).

On June 30, 2014, the Court granted ACI’s request for preliminary injunctive relief. (Doc. 15). Consequently, the City was preliminarily enjoined from enforcing CMC 320-3© and (k), CMC 320-5, and CMC 320-7 in connection with specifically named pending projects, as well as other pending or future water works construction projections for which contracts had not been awarded. Id. at PagelD 188. Bond was set at $1 million dollars, which was posted on July 3, 2014. (Doc. 16). In accordance with the order, the parties came to certain agreements relating to pending projects. (Doc. 18). Subsequently, on September 8, 2014, Local 265 sought to intervene in this case. (Doc. 20). The Court granted Local 265’s Motion on November 24, 2014. (Doc. 34).

II. EVIDENTIARY ISSUES

A. Objections

Local 265 attaches to its Response to Plaintiffs Motion a list of objections to the affidavits of Terry Phillips and Steven Klinker. (See Docs. 64-30, 64-31). The City followed suit, and filed a separate docu[658]*658ment titled “Defendant’s Evidentiary Objections to Plaintiffs Dispositive Motions.” (Doc. 71).

To be considered on a motion for summary judgment, an affidavit must satisfy three requirements: 1) it “shall be made on personal knowledge”, 2) it “shall set forth such facts as would be admissible in evidence”, and 3) it “shall show affirmatively that the affiant is competent to testify to the matters stated therewith.” Fed. R. Civ. P. 56(e).

Affidavits not in compliance with Rule 56(e) are subject to a motion to strike. Reddy v. Good Samaritan Hosp. & Health Ctr., 137 F.Supp.2d 948, 954 (S.D. Ohio 2000). The Court notes, however, that Local 265 and the City did not file motions to strike, but rather simply list their objections to various paragraphs of each affidavit. Moreover, both parties provide little argument, if any, to accompany their evi-dentiary objections. Because meeting the requirements of Rule 56(e) is mandatory, the Court addresses the objections raised. The crux of their objections is that the contested paragraphs are not based upon personal knowledge or are not relevant, implicating two of the requirements under Rule 56(e).

“In resolving a motion to strike, the Court should use ‘a scalpel, not a butcher knife.’ Perez v. Volvo Car Corp., 247 F.3d 303, 315-16 (1st Cir. 2001). Thus, it is appropriate for the Court to strike portions of affidavits that do not satisfy the requirements of Rule 56(e).” Giles v. University of Toledo, 241 F.R.D. 466, 469 (N.D. Ohio 2007) (citing 11 James Wm. Moore, Federal Practice § 56.14[1][d] (Matthew Bender 3d ed.), n. 46 and 47).

First, evidence is relevant if it has “any tendency” to make a fact “of consequence” more or less probable. Fed. R. Evid. 401. The threshold for relevance is low, and in fact the standard is “extremely liberal.” Dortch v. Fowler, 588 F.3d 396, 400 (6th Cir. 2009).

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214 F. Supp. 3d 653, 62 Employee Benefits Cas. (BNA) 1813, 2016 U.S. Dist. LEXIS 135758, 2016 WL 5661674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-construction-industries-v-city-of-cincinnati-ohsd-2016.