Associated General Contractors of Ohio, Inc. v. Drabik

214 F.3d 730, 2000 WL 703031
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 1, 2000
Docket98-4393
StatusPublished
Cited by11 cases

This text of 214 F.3d 730 (Associated General Contractors of Ohio, Inc. v. Drabik) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit 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 Ohio, Inc. v. Drabik, 214 F.3d 730, 2000 WL 703031 (6th Cir. 2000).

Opinion

OPINION

BOGGS, Circuit Judge.

Associated General Contractors of Ohio, and Associated General Contractors of Northwest Ohio (“Plaintiffs-Appellees”), representing Ohio building contractors, sued to stop the award of a construction contract for the Toledo Correctional Facility to a minority-owned business (“MBE”), in a bidding process from which non-minority-owned firms were statutorily excluded under Ohio’s Minority Business Enterprise Act (“MBEA”). Plaintiffs-Ap-pellees claimed the MBEA is unconstitutional, in that it violates the Fourteenth Amendment’s Equal Protection Clause. The district court agreed, and permanently enjoined the state from awarding any construction contracts thereunder. Defendant-Appellant Sandra Drabik, Director of the Ohio Department of Administrative Services (“DAS”), which coordinates and manages state construction projects, and other Defendants-Appellants, appeal the district court’s order. We affirm.

I

Ohio passed the Minority Business Enterprise Act (“MBEA”) in 1980. This legislation set aside five percent, by value, of all state construction projects for bidding by certified MBEs exclusively. O.R.C. § 123.151(C)(1). Other provisions govern subcontracting to MBEs of work awarded under this scheme. Ohio defines an MBE as a venture owned and controlled, to the extent of fifty-one percent, for at least one year previous, by “members of one of the following economically disadvantaged groups: Blacks, American Indians, His-panies, and Orientals.” O.R.C. § 122.71(E). Other provisions establish procedures for certification and listing as an MBE; in what follows, “MBE” will be understood to refer to such officially certified businesses. As of October 1998, DAS maintained a list of 1,180 MBEs.

Pursuant to the MBEA, DAS decided to set aside, for MBEs only, bidding for construction of the Toledo Correctional Facility’s Administration Building, which represents twenty percent of the total project’s value of $50 million. Non-MBEs, many of whom are members of the plaintiff trade associations, will thus be excluded on racial grounds from bidding on that aspect of the project, and will be restricted in their participation as subcontractors. MBEs are, of course, free to bid on, and participate fully in, non-set-aside as well as set-aside contracts.

This court ruled in 1983 that the MBEA was constitutional, see Ohio Contractors Ass’n v. Keip, 713 F.2d 167 (6th Cir.1983), overruling Judge Kinneary’s judgment in the district court that Ohio’s scheme was unconstitutional on its face, see Ohio Contractors Ass’n v. Keip, No. C-2-82-446 (S.D.Oh. Dec. 15, 1982). Subsequently, the Supreme Court, in two landmark decisions, explained and applied at length the criteria of strict scrutiny under which such racially preferential set-asides were to be evaluated. See City of Richmond v. J.A. Croson Co., 488 U.S. 469, 109 S.Ct. 706, 102 L.Ed.2d 854 (1989); Adarand Constructors, Inc. v. Pena, 515 U.S. 200, 115 S.Ct. 2097, 132 L.Ed.2d 158 (1995). This court had already, in Michigan Road Builders Ass’n v. Milliken, 834 F.2d 583 (6th Cir.1987), taken note of the trend developing both in the Supreme Court and Circuit Courts (which was to culminate in Croson and Adarand) to apply the Equal Protection Clause strictly to racial discrimination in government contracting. Michigan Road Builders departed from the more relaxed treatment that Keip had accorded to equal protection challenges to state con- *734 trading disputes. See id. at 598 (Lively, C.J., dissenting). Croson also noted that same evolution in this Circuit. See 488 U.S. at 477, 109 S.Ct. 706.

Ohio’s MBEA was passed after many years, during the 1970s, of executive and administrative agency task force consideration of complaints regarding, and statistics concerning, minority group participation in state construction contracts. These, and the legislative hearings and debates that immediately preceded passage of the MBEA, are detailed by Judge Kinneary in his 1982 decision striking down that act.

In the light of Croson and Adarand, the district court in this case returned to the prescient standards under which the MBEA had been invalidated in. 1982. Reviewing the evidence, Judge Graham, at the close of a hearing held on October 26, 1998 to consider the state’s request for a six-month continuance (which was denied), cites Judge Kinneary’s 1982 analysis, which ' anticipated that of Croson, with complete approval. Judge Graham found the MBEA patently unconstitutional: “I am mindful of the fact that it is certainly unusual for a court to declaré a state statute which has such far-reaching effects unconstitutional from the bench, but I cannot imagine any clearer case than this for the unconstitutionality of the state' statute.” • ■

The district court also reférred to a 1997 ruling from the Ohio Court of Appeals on the MBEA. In that case, a business own! er of Lebanese descent, who was denied certification as an MBE on the grounds he was not an Oriental, claimed his right to equal protection was violated by the MBEA as applied to him. The Court of Appeals affirmed the trial court’s ruling that the MBEA’s per-se race classification is unconstitutional. That ruling has since been overturned by the Ohio Supreme Court, which, in a lengthy review of minority set-aside jurisprudence, concluded that the MBEA was constitutional. See Ritchey Produce Co. v. State of Ohio Dep’t of Administrative Services, 1997 WL 629965 (Ohio App. 10 Dist. Oct.7, 1997), rev’d, 85 Ohio St.3d 194, 707 N.E.2d 871 (1999). At the time of the district court’s ruling, Rit-chey was still pending in the Ohio Supreme Court. Hence, Ohio argued that the district court should have abstained from making a decision. A motion to that effect was filed with the district court, which denied it after an extensive consideration of abstention doctrine. This appeal also argues that the district court’s denial of the abstention motion was error.

II

A

“The constitutionality of a statute is a question of law, reviewable de novo.” Hadix v. Johnson, 144 F.3d 925, 938 (6th Cir.1998) (citing United States v. Brown, 25 F.3d 307, 308 (6th Cir.), cert. denied, 513 U.S. 1045, 115 S.Ct. 640, 130 L.Ed.2d 546 (1994)).

Croson reaffirmed the “strict scrutiny” standard of review adopted by the Court for preferential programs based on racial or ethnic criteria in Wygant v. Jackson Bd. of Educ., 476 U.S. 267, 274, 106 S.Ct.

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