CHICAGO UNITED INDUSTRIES, LTD. v. City of Chicago

739 F. Supp. 2d 1043, 2010 U.S. Dist. LEXIS 94397, 2010 WL 3655983
District Court, N.D. Illinois·Decided September 10, 2010·No. Case No.: 05-cv-5011·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION AND ORDER

ROBERT M. DOW, JR., District Judge.

This matter is before the Court on Plaintiff Chicago United Industries, Ltd.’s (“CUI”) motion to reconsider [323] the Court’s Memorandum Opinion and Order [318] dated January 15, 2010, which granted Defendants’ motion for summary judgment [269] and denied as moot Defendants Dempsey and Langone’s motion for summary judgment based on qualified immunity [274]. 1 For the following reasons, CUI’s motion to reconsider [329] is denied.

I. Background

This case involves a now long-standing dispute between the City of Chicago and CUI, a City contractor. The relevant facts are set forth in detail in the Court’s January 15, 2010 Memorandum Opinion and Order, 685 F.Supp.2d 791 (N.D.Ill.2010) (“the Opinion”), and will not be restated in their entirety here. In brief, the dispute dates back to March 17, 2005, when the City issued a Preliminary Notice of Intent to Decertify CUI as a minority-owned business enterprise (“MBE”) based on the allegation that CUI was operating as • a broker. Shortly thereafter, on March 31, 2005, the City issued a notice of intent to debar CUI from doing business with the City based on the allegation that CUI had submitted a false shipping ticket in connection with a delivery of aluminum sign blanks (unpainted traffic signs) to the City’s Department of Transportation (“CDOT”). CUI contends that, since that time, the City essentially has systematically mistreated CUI (by, among other things, stopping or reducing orders on existing contracts with CUI, failing to award CUI new contracts when it was the lowest bidder, failing to extend existing CUI contracts, and refusing to communicate with *1046 CUI) in an effort to drive CUI out of business.

On August 24, 2005, the City debarred CUI and its owners from doing business with the City and terminated its existing contracts with CUI. CUI then filed this suit, seeking injunctive relief on the ground that the City had violated the due process clause of the Fourteenth Amendment by failing to give CUI a predeprivation hearing. Judge Shadur, the district court judge assigned to the case at that time, issued a temporary restraining order on August 31, 2005 enjoining the Defendants from enforcing the debarment and from canceling any of CUI’s existing contracts with the City. Shortly thereafter, the City reinstated CUI’s contracts with the City and rescinded the debarment order. However, according to CUI, the pattern of mistreatment (again including stopping or reducing orders on existing contracts with CUI, failing to award CUI new contracts when it was the lowest bidder, failing to extend contracts with CUI, and restricting communications with CUI) did not stop.

CUI characterizes the alleged mistreatment that occurred between April and August of 2005 as an effort by the City to deprive it of its MBE certification (ie., de facto decertification) in violation of CUI’s due process rights. CUI characterizes the mistreatment that allegedly has continued since the August 2005 as retaliation in violation of the First Amendment for the filing of this suit.

The Opinion, which CUI asks the Court to reconsider, addressed Counts III, IV, V, and VI of CUI’s six-count Third Amended Complaint. With respect to Count III, a procedural due process property interest claim against the City and Dempsey, the Court concluded that CUI has a constitutionally protected property interest in its MBE certification. However, the Court nevertheless granted summary judgment in favor of Defendants on Count III, finding that CUI failed to present sufficient evidence from which a reasonable jury could conclude that CUI had suffered a loss of that interest amounting to a constitutional deprivation. The Court granted summary judgment in favor of Defendants on Count IV, in which CUI alleged that Defendants retaliated against it for filing the instant lawsuit in violation of the First Amendment, on the ground that CUI had failed to establish a genuine issue of material fact as to causation (ie., whether its protected speech caused Defendants’ adverse actions). In Count VI, CUI alleged that the City breached a number of its contracts with CUI by (1) stopping or reducing orders on contracts, (2) refusing to extend contracts despite regularly doing so in the past, and (3) failing to communicate with CUI. The Court concluded that Count VI could not survive summary judgment because: (1) CUI presented no evidence from which a reasonable jury could conclude that the City reduced or terminated its requirements in bad faith; (2) the parties’ course of dealing with respect to extensions could not be used to imply a term requiring the City to extend its contracts because such a term would contradict the express terms of the contracts; and (3) the contracts did not require that the City maintain any particular level of communication with CUI. Finally, the Court granted summary judgment in favor of Defendants on Count V, concluding that there was no basis for awarding CUI injunctive relief because none of CUI’s substantive claims had survived summary judgment.

II. Standard for a Motion to Reconsider

A court may alter or amend a judgment under Federal Rule of Civil Procedure 59(e) when the movant “clearly establish[es]” that “there is newly discovered evidence or there has been a manifest *1047 error of law or fact.” Harrington v. City of Chicago, 433 F.3d 542, 546 (7th Cir.2006). In regard to the “manifest error” prong, the Seventh Circuit has elaborated that a motion to reconsider is proper only when “the Court has patently misunderstood a party, or has made a decision outside the adversarial issues presented to the Court by the parties, or has made an error not of reasoning but of apprehension.” Bank of Waunakee v. Rochester Cheese Sales, Inc., 906 F.2d 1185, 1191 (7th Cir.1990). Rule 59(e) “does not provide a vehicle for a party to undo its own procedural failures, and it certainly does not allow a party to introduce new evidence or advance arguments that could and should have been presented to the district court prior to the judgment.” Bordelon v. Chicago School Reform Bd. of Trustees, 233 F.3d 524, 529 (7th Cir.2000). Because the standards for reconsideration are exacting, our court of appeals has stressed that issues appropriate for reconsideration “rarely arise and the motion to reconsider should be equally rare.” Bank of Waunakee, 906 F.2d at 1191.

III. Analysis

A. Procedural Due Process Property Interest Claim

CUI maintains that, between April and August of 2005, the City and Dempsey deprived it of its constitutionally protected property interest in its MBE certification without due process of law, by, inter alia, stopping or reducing orders on existing contracts with CUI, failing to award CUI new contracts, failing to extend existing CUI contracts, and telling prime contractors that CUI was no longer certified as an MBE.

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CHICAGO UNITED INDUSTRIES, LTD. v. City of Chicago, 739 F. Supp. 2d 1043, 2010 U.S. Dist. LEXIS 94397, 2010 WL 3655983 (N.D. Ill. 2010).

739 F. Supp. 2d 1043 (CHICAGO UNITED INDUSTRIES, LTD. v. City of Chicago) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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