Brown v. Washoe Housing Authority

625 F. Supp. 595, 1985 U.S. Dist. LEXIS 12432
CourtDistrict Court, D. Utah
DecidedDecember 23, 1985
DocketCiv. C85-647G
StatusPublished
Cited by6 cases

This text of 625 F. Supp. 595 (Brown v. Washoe Housing Authority) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Washoe Housing Authority, 625 F. Supp. 595, 1985 U.S. Dist. LEXIS 12432 (D. Utah 1985).

Opinion

MEMORANDUM DECISION AND ORDER

J. THOMAS GREENE, District Judge.

This matter came on regularly for hearing on October 30, 1985, on defendant Washoe Housing Authority’s Motion to Quash or in the Alternative Change of Venue and on the United States of America’s Motion to Dismiss. LeRoy S. Axland and Scott F. Young appeared on behalf of defendant Washoe Housing Authority, Kathleen B. Barrett appeared on behalf of defendant United States of America and Jack Fairclough appeared on behalf of plaintiff Knowlton H. Brown Construction Company. The issues were thoroughly briefed by the plaintiff and defendants and the parties presented extensive oral argument, after which the Court took the matter under advisement.

FACTUAL BACKGROUND

This case arises out of a contract for the construction of low-cost housing on the Washoe Indian Tribe’s land in the State of Nevada. The Washoe Tribe of the States of Nevada and California (“Washoe Tribe”) is a federally chartered corporation created by the Indian Reorganization Act of 1934, Ch. 576, 48 Stat. 984 (codified as amended at 25 U.S.C. § 461, et seq.). Defendant Washoe Housing Authority (hereinafter “Washoe”) is a non-profit agency and a political subdivision of the Washoe Tribe created by the Tribal Council to provide low income housing on Washoe Tribal lands. Invitations to bid were developed by Washoe and placed for publication in trade journals in the Western United States during the months of April-July 1979. One such trade journal, Intermountain Contractor, is published in Salt Lake City and *597 is subscribed to by many major contractors in Utah for the purpose of learning about current construction projects and invitations to bid. The Intermountain Contractor published eleven weekly notices which furnished pertinent information on the projects, including solicitation of plans and specifications. 1 Defendant Washoe provided the bid information together with plans and specifications to the Intermountain Contractor, for the obvious purpose of seeking and encouraging bids or contract offers from intermountain construction companies, including those in Utah. Plaintiff Brown subscribed to the Intermountain Contractor in order to keep advised of potential construction projects and bid opportunities, and reviewed the publication at its Brigham City, Utah office. A Brown Construction Company employee read the notice of the Projects and requested of Washoe the pertinent bid forms, plans and specifications, which were sent to plaintiffs Utah office. Brown then submitted its bid on the Projects to Washoe. The July 20, 1979 issue of the Intermountain Contractor gave notice that Brown was the low bidder for the Projects and it was awarded the contract. Based upon that award, defendant Washoe mailed an approved HUD contract to plaintiff Brown’s Utah office for signature, which Knowlton H. Brown signed in Utah and then returned by mail to Washoe. Thereafter, Washoe sent to Brown at its Utah office a copy of the contract signed by both parties and a Notice to Proceed on the contract. Brown contends, and Washoe does not dispute, that prior to and after the award there was communication on several occasions between Washoe and Brown by telephone and through the mails. Brown received all payments in Utah and executed payment bonds required by HUD and Washoe in Utah with a Utah bonding company. Brown completed the contract with inspection and acceptance by Washoe and HUD in May 1980.

PRESENT ACTION

On May 23, 1985, Brown filed a complaint against Washoe and HUD on claims arising out of the contract for the construction of the Projects on Washoe Tribal lands in Nevada. In the first cause of action it is alleged that during the course of construction plaintiff notified Washoe and HUD that breaches of the contract and improper contract administration by Washoe had caused the plaintiff to incur additional costs, work delay and other damages in the amount of $104,830.59, plus interest. 2 In the second cause of action plaintiff seeks to enjoin Washoe from doing anything with the funds it has received from HUD for the Projects which might preclude plaintiff from collecting a judgment. In the third cause of action plaintiff alleges tortious conduct on the part of HUD in exercising its control over the projects and in the handling of plaintiff’s claims, as well as breaches of contract and warranty against HUD, for which plaintiff seeks judgment against the United States in the amount of $104,830.59, plus interest.

I. Personal Jurisdiction

The first issue is whether Washoe’s contacts with the State of Utah as outlined above are sufficient to subject it to personal jurisdiction in this forum. That issue *598 involves an analysis of state statutory law and federal constitutional principles. In diversity actions, as here, the federal court must look to the law of the forum state to determine the issue of personal jurisdiction over the parties. See Yarbrough v. Elmer Bunker & Assoc., 669 F.2d 614 (10th Cir. 1982); Luckett v. Bethlehem Steel Corp., 618 F.2d 1373 (10th Cir.1980); Segil v. Gloria Marshall Management Co., 568 F.Supp. 915 (D.Utah 1983). Once it is determined that the state law subjects a party to the personal jurisdiction of the forum, the court must determine whether the party’s contacts with the state are sufficient to satisfy the due process requirements of the United States Constitution.

A. Utah Long Arm Statute

The Utah Long Arm statute provides in pertinent part:

Any person, notwithstanding section 16-10-102, whether or not a citizen or a resident of this state, who in person or through an agent does any of the following enumerated acts, submits himself, and if an individual, his personal representative, to the jurisdiction of the courts of this state as to any claim arising from:
1 (1) the transaction of any business within this state;
(Emphasis added)

Utah Code Ann. § 78-27-24(1), (3) (Supp. 1983) .

1. In General —Early on, the Utah Court took a fairly restrictive view of the potential reach of the Long Arm Statute over out of state parties. See, e.g., Union Ski Co. v. Union Plastics Corp., 548 P.2d 1257 (Utah 1976); Hill v. Zale Corp., 25 Utah 2d 357, 482 P.2d 332 (1971). Those cases, and others relied upon extensively by Washoe in support of its Motion to Quash, exemplify the Utah Supreme Court’s early hesitance to discard then traditional notions of personal jurisdiction. See Strachan,

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Bluebook (online)
625 F. Supp. 595, 1985 U.S. Dist. LEXIS 12432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-washoe-housing-authority-utd-1985.