Associated General Contractors of Connecticut v. City of New Haven

791 F. Supp. 941, 1992 WL 100452
CourtDistrict Court, D. Connecticut
DecidedMay 4, 1992
Docket3:89-cv-00303 (PCD)
StatusPublished
Cited by7 cases

This text of 791 F. Supp. 941 (Associated General Contractors of Connecticut v. City of New Haven) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associated General Contractors of Connecticut v. City of New Haven, 791 F. Supp. 941, 1992 WL 100452 (D. Conn. 1992).

Opinion

RULING ON MOTION FOR SUMMARY JUDGMENT

DORSEY, District Judge.

Plaintiffs seek a declaration that an ordinance which sets aside a percentage of city contracts for “disadvantaged and women business enterprises” is unconstitutional in light of City of Richmond v. J.A. Croson Co., 488 U.S. 469, 109 S.Ct. 706, 102 L.Ed.2d 854 (1989). Pending is plaintiffs’ motion for summary judgment. 1

*943 Legislating attitudes is not readily accomplished. It flies in the face of the first amendment’s right of choice of association and the constitutional concept of individual liberty. The right of the individual to make personal choices, the essence of liberty, when based on race, religion, ethnic background, or gender is discrimination. Many individual choices which reflect bias or prejudice are unquestionably beyond the reach of the government. Yet, when individuals’ choices drastically impinge on the liberty of others, governmental intrusion on the freedom to make such choices is tolerated.

In this nation of so many religions, races, and ethnic origins, bias against groups and individuals within groups has been a constant social phenomenon. Thus, new groups entering the country have faced hostility until integration brought a degree of acceptance. The substantial degree of black subordination to an inferior status, which has continued, has prompted the enactment of corrective laws. Thus, the City of New Haven, not unlike many municipalities troubled by discriminatory conduct, with which the town may have passively participated, has sought to rectify perceived discrimination against minorities in the construction industry. Set-aside ordinances are intended to foster and encourage minorities to become established in that business with the hope and expectation that, by being forced to accept and do business with minority and women business enterprises (“MBEs” and “WBEs”), non-minority businesses will come to do so of their own volition.

The unquestionably well intentioned adoption of such laws incorporates race conscious criteria. So here, New Haven has a specific set-aside for women-owned companies and for businesses of the disadvantaged, within which minorities are presumed to be included. Use of race-conscious criteria contravenes the notion of equal protection. Thus, the ordinance in question, to the extent of the set aside, treats groups within the industry differently.- Minorities, the disadvantaged, and women are advantaged. Plaintiffs challenge the ordinance, though they are only being forced to seek out and employ subcontractors to fulfill the set asides. Their free choice of subcontractors, who would do no different work, nor at greater cost, in theory, is thus inhibited. Plaintiffs, therefore, claim its members’ rights are violated by New Haven’s effort to rectify on-going discrimination which denies equality of treatment to minorities and women.

Facts and Procedural History

From 1977 through 1989, a “set-aside” ordinance, known as Chapter I2V2, was in effect. It reserved to MBEs and WBEs a percentage of the city’s construction contracts. During this period, the share of such contracts received by MBEs and WBEs rose significantly. Between 1974 and 1979, minority and women-owned companies combined received less than 1% of public contracts. From 1983 to 1985, MBEs and WBEs, then approximately 10% of the construction companies, received approximately 10.6% of the contracts. In 1986, their share fell to 2%, but rose to 20% in 1987, and to almost 25% in 1988. Of 198 minority businesses in New Haven in 1988, 8%, or 16, were in construction. The average age of the minority businesses was 10.8 years. As of 1987, 6% of the New Haven construction firms were black-owned, .5% were hispanic-owned, and 3% were women-owned. This was unchanged over the prior four years. From 1983 to 1985, MBEs were awarded 7.5% of the city contract awards (by number) and WBEs firms were awarded 3%. In dollar terms, MBEs received 7% and WBEs 3%. These are slightly below the set-aside in Chapter 12V4 and not inconsistent, according to Dr. Jaynes, with contractors’ complaints of unavailability of MBEs and WBEs to do the work at reasonable prices. Report of Dr. Jaynes at 45. In 1986, women and minorities received a combined 2% of such contracts. In 1987, WBEs reportedly received 20%. In 1988, of $110,000,000 in *944 city contracts, MBEs received 24% and WBEs 25%. No information was provided as to the location of the subcontractors.

In 1989, the city conducted studies of racism within the city’s construction industry. It was determined that a need for a set-aside ordinance continued and, thus, it adopted Chapter 12V4. Plaintiffs claim that Chapter 12V4 is virtually identical to Chapter 12¥2 and that it is facially invalid. Discussion

A. Standard of Review

Summary judgment requires a determination as to whether a genuine issue of material fact exists. The standard of review is detailed in Cote v. Durham Life Ins. Co., 754 F.Supp. 18, 19 (D.Conn.1991). Defendant contends that questions of fact are disputed. That view assumes that whether the evidence before the Board of Aldermen justified its conclusion that a compelling interest was presented was a question of fact. It is not; it is a question of law.

The standard of review of challenges to a statute which employs a suspect classification, such as race, is “strict scrutiny.” Such a statute will only be upheld if there is a “compelling state interest” in enacting the law and if the law is “narrowly” tailored to achieve that interest. See, e.g., Croson, 488 U.S. at 494, 109 S.Ct. at 721; Wygant v. Jackson Bd. of Educ., 476 U.S. 267, 106 S.Ct. 1842, 90 L.Ed.2d 260 (1986). Where gender is involved, the statute must serve “an important government objective” and the methods must be substantially related to the achievement of that objective. See, e.g., Mississippi Univ. for Women v. Hogan, 458 U.S. 718, 102 S.Ct. 3331, 73 L.Ed.2d 1090 (1982); Weinberger v. Wiesenfeld, 420 U.S. 636, 648, 95 S.Ct. 1225, 1233, 43 L.Ed.2d 514 (1975). Intermediate scrutiny is the standard. Craig v. Boren, 429 U.S. 190, 97 S.Ct. 451, 50 L.Ed.2d 397 (1976); Reed v. Reed, 404 U.S. 71, 92 S.Ct. 251, 30 L.Ed.2d 225 (1971).

B. Chapter 121/,

Chapter 12V4-5.1. provides that

on all City Construction Contracts and Development Agreements ... where the costs of construction exceed $75,000, the Construction Contractor or the Developer ...

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791 F. Supp. 941, 1992 WL 100452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-general-contractors-of-connecticut-v-city-of-new-haven-ctd-1992.