Associated Utility Contractors of Maryland, Inc. v. Mayor of Baltimore

83 F. Supp. 2d 613, 2000 U.S. Dist. LEXIS 2612, 2000 WL 201606
CourtDistrict Court, D. Maryland
DecidedFebruary 16, 2000
DocketCIV. AMD 98-4060
StatusPublished
Cited by4 cases

This text of 83 F. Supp. 2d 613 (Associated Utility Contractors of Maryland, Inc. v. Mayor of Baltimore) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associated Utility Contractors of Maryland, Inc. v. Mayor of Baltimore, 83 F. Supp. 2d 613, 2000 U.S. Dist. LEXIS 2612, 2000 WL 201606 (D. Md. 2000).

Opinion

MEMORANDUM

DAVIS, District Judge.

Plaintiff Associated Utility Contractors of Maryland, Inc. (“AUC”) filed this action to challenge the continued implementation of the affirmative action program created by Baltimore City Ordinance 610, Balt. City Code §§ 217-226B (“the Ordinance”). The Ordinance was enacted in 1990 and authorizes the City to establish annually numerical set-aside goals applicable to a wide range of public contracts, including construction subcontracts.

After a limited period of discovery, AUC filed a motion for summary judgment, *614 which the City and intervening defendant Maryland Minority Contractors Association, Inc. (“MMCA”) opposed. On December 17, 1999, I issued an order granting in part and denying in part the motion for summary judgment (“the December injunction”). Specifically, as to construction contracts entered into by the City, I enjoined enforcement of the Ordinance (and, consequently, continued implementation of the affirmative action program it authorizes) in respect to the City’s 1999 numerical set-aside goals for Minority-and Women-Owned Business - Enterprises (“MWBEs”), which had been established at 20% and 3%, respectively. I denied the motion for summary judgment as to the plaintiffs facial attack on the constitutionality of the Ordinance, concluding that there exists “a dispute of material fact as to whether.the enactment of the Ordinance was adequately supported by a factual record of unlawful discrimination properly remediable through race- and gender-based affirmative action.”

Although the December injunction contemplated that further discovery would be undertaken by the parties and that further proceedings would be necessary fully to adjudicate this case, in the present posture of the matter, I am persuaded that no further proceedings are necessary or appropriate in this case. I explain below the reason for the entry of the December injunction and the reasons I now conclude that no further proceedings are necessary or appropriate in this case in this court.

I

The City has timely appealed the entry of the December injunction to the United States Court of Appeals for the Fourth Circuit. In addition, the City has filed before me, and plaintiff has opposed, a motion for stay of the injunction pursuant to- Fed.R.Civ.P. 62(c). In support of the motion for stay, the City has disclosed the issues it will rely upon in what it contends will be a successful appeal. First, the City persists in its contention that AUC lacks organizational standing to challenge the Ordinance. For the reasons previously explained on the record and as elaborated upon herein, I am persuaded that plaintiff has satisfied the requirements for organizational standing as to the set-aside goals established by the City for 1999.

The'1 City ■ also seems to contend that (and apparently will seek vacation'of the December injunction on appeal on the ground that) I erred in failing to forebear from the adjudication of this case and of the motion for summary judgment until after it had completed an alleged disparity study which, it contends, will establish a justification for the set-aside goals established for 1999. This curious argument seems to rest on the unarticulated notion that a governmental entity might permissibly adopt an affirmative action plan including set-aside goals and wait until such a plan- is challenged in court before undertaking the necessary studies upon which the constitutionality of the plan depends. I am not aware of any legal support for such an approach, the City has not cited any such authority, and I am constrained to reject it.

As explained below, therefore, because the City has offered no contemporaneous justification for the 1999 set-aside goals it adopted on the authority of the Ordinance, I issued the December injunction and I shall decline to stay its effectiveness. Inasmuch as the December injunction awards complete relief to the plaintiff organization, and since any effort to adjudicate the issue of whether the City will adopt revised set-aside goals on the authority of the Ordinance is at present a wholly speculative undertaking, I shall dismiss this case without prejudice.

II

In 1986, the City Council enacted in Ordinance 790 the first city-wide affirmative action set-aside goals, which required, inter alia, that for all City contracts, 20% of the value of subcontracts be awarded to Minority-Owned Business Enterprises *615 (“MBEs”) and 3% to Women-Owned Business Enterprises (“WBEs”). As permitted under then controlling Supreme Court precedent, 1 Ordinance 790 was justified by a finding that general societal discrimination had disadvantaged MWBEs. Apparently, no disparity statistics were offered to justify Ordinance 790.

After the Supreme Court announced its decision in City of Richmond v. J.A. Croson, 488 U.S. 469, 109 S.Ct. 706, 102 L.Ed.2d 854 (1989), the City convened a Task Force to study the constitutionality of Ordinance 790. The Task Force held hearings and issued a Public Comment Draft Report on November 1, 1989. It held additional hearings, reviewed public comments and issued its final report on April 11, 1990, recommending several amendments to Ordinance 790. The City Council conducted hearings, and in June 1990, enacted Ordinance 610, the law under attack in this case.

In enacting Ordinance 610, the City Council found that it was justified as an appropriate remedy of “[pjast discrimination in the City’s contracting process by prime contractors against minority and women’s business enterprises.... ” Balt. City Code § 217(a). The City Council also found that “[mjinority and women’s business enterprises ... have had difficulties in obtaining financing, bonding, credit and insurance;” that “[t]he City of Baltimore has created a number of different assistance programs to help small businesses with these problems ... [but that tjhese assistance programs have not been effective in either remedying the effects of past discrimination ... or in preventing ongoing discrimination.” Id. § 217(c) & (d).

The operative section of Ordinance 610 relevant to this case mandates a procedure by which set-aside goals are to be established each year for minority and women owned business participation in City contracts. Id. § 219(a). The Ordinance itself does not establish any goals, but directs the Mayor to consult with the Chief of Equal Opportunity Compliance and “contract authorities” and to annually specify goals for each separate category of contracting “such as public works, professional services, concession and purchasing contracts, as well as any other categories that the Mayor deems appropriate.” Id. The yearly goals must be “reasonable, achievable, and ...” based upon

(1) the existence and extent of past discrimination against minority and women’s business enterprises on contracts awarded by the City and the likelihood of continuing discrimination if there were no annual goal;
(2) the level of participation of minority ...

Free access — add to your briefcase to read the full text and ask questions with AI

Related

(2006)
91 Op. Att'y Gen. 181 (Maryland Attorney General Reports, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
83 F. Supp. 2d 613, 2000 U.S. Dist. LEXIS 2612, 2000 WL 201606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-utility-contractors-of-maryland-inc-v-mayor-of-baltimore-mdd-2000.