Cone Corp. v. Hillsborough County

157 F.R.D. 533, 1994 U.S. Dist. LEXIS 13651, 1994 WL 526019
District Court, M.D. Florida·Decided September 16, 1994·No. No. 89-540-CIV-T-17A·Published·Cited by 6 cases

Opinion

ORDER ON RULE 11 SANCTIONS

KOVACHEVICH, District Judge.

THIS CAUSE is before this Court on the Court’s sua sponte motion to impose sanctions on Plaintiffs and/or their attorney, pursuant to Rule 11, Fed.R.Civ.P. (Docket No. 137). Plaintiffs timely filed a memorandum in response (Docket No. 141), and Defendants thereafter timely filed them memorandum in response (Docket No. 145).

FACTS AND PROCEDURAL HISTORY

Pursuant to this Court’s Order on Remand and Plaintiffs’ Motion to Amend (Docket No. 128) , Plaintiffs were given a final opportunity to submit a complaint stating an injury-in-fact which stemmed from the operation of Hillsborough County Resolution R88-0173, § 8.46 (Minority Business Enterprise (“MBE”) law). Plaintiffs were warned that the submission of a complaint which failed to establish injury-in-fact as described in that order could result in the imposition of Rule 11 sanctions.

Subsequently, Plaintiffs submitted a complaint almost identical to the original Second Amended Complaint, with only the addition of three (3) new paragraphs. (Docket No. 129) . Plaintiffs resubmitted arguments that had been ruled upon in this Court’s order, as well as meritless arguments in relation to their claim for damages. Plaintiffs made no effort to tailor the complaint to the specific issue at bar. The new information established no particularized or concrete injury, as was required, but instead consisted of generalized and nonspecific allegations. Consequently, Plaintiffs’ Second Amended Complaint was dismissed with prejudice. (Docket No. 138).

This case has been pending since 1989 and Plaintiffs have had ample time and opportunity to gather information factually supportive of any legitimate allegations, but have failed to do so. Because this Court believed that Plaintiffs had shown no regard for the Court’s instructions to make a good faith attempt to show injury-in-fact, this Court moved sua sponte to impose sanctions on Plaintiffs and/or their attorney, pursuant to Rule 11, Fed.R.Civ.P. (Docket No. 137). Plaintiffs have again appealed the dismissal of their Second Amended Complaint to the United States Court of Appeals for the Eleventh Circuit. (Docket No. 140).

DISCUSSION

A District Court retains jurisdiction to impose Rule 11 sanctions after timely filing of notice of appeal of the Court’s final order.1 Plaintiffs’ Counsel argues against the imposition of sanctions by claiming that the law of standing is unsettled and in conflict, and he is “simply making his best effort to have the law of this Circuit clarified, modified and harmonized.”

Plaintiffs have misrepresented precedent law in their memorandums on several occasions. First, in their Response to Defendants’ Motion to Dismiss Second Amended Complaint (Docket No. 136), Plaintiffs state, .based on Northeastern Florida Chapter, AGC v. Jacksonville, — U.S.-, 113 S.Ct. 2297, 124 L.Ed.2d 586 (1993): “All that a [536]*536non-MBE plaintiff need allege is that it has suffered ‘any injury to [its] ability to compete from the operation of the provision treating minority and non-minority contractors differently.’ ”

The above quotation comes from the panel of the Court of Appeals, Eleventh Circuit, on appeal from the first dismissal of Plaintiffs complaint for lack of standing. The referenced quote was directed to this Court, directing this Court to reconsider the amended complaint in light of Northeastern Florida, to determine whether or not Plaintiffs

have in fact alleged any injury to their ability to compete stemming from the operation of the provision treating minority and non-minority contractors differently. In addressing this question, the district court should keep in mind the additional standing requirement that a party seeking to invoke a federal court’s jurisdiction must demonstrate ... “injury in fact,” by which we mean an invasion of a legally protected interest that is (a) concrete and particularized, and (b) actual or imminent, not conjectural or hypothetical.

Cone Corp. v. Hillsborough County, 5 F.3d 1397, 1399 (11th Cir.1993). Thus, Plaintiffs’ Counsel was not given carte blanche by the Eleventh Circuit to allege “any injury” in order to have standing, and by so stating in his memorandum, he deliberately attempted to mislead this Court. Additionally, he left out that portion which follows his selective quote, which makes it abundantly clear that the Eleventh Circuit requires particularized injury.

In their Response to Defendants’ Motion to Dismiss Second Amended Complaint, Plaintiffs next address their standing to seek damages. Counsel wrongly states that the County forces Plaintiffs to subcontract work that they would normally do themselves. This Court refers Plaintiffs to the opinion of the Eleventh Circuit on the first appeal in this case, in which the Court explicitly outlined Hillsborough County’s MBE law. The Cone Corp. v. Hillsborough County, 908 F.2d 908 (11th Cir.1990). Additionally, the Court refers Plaintiffs to the order filed this date, granting Defendants’ Motion for Award of Costs and Attorneys Fees. There is absolutely no basis in fact for Plaintiffs to claim that the County forces them to subcontract; furthermore, Plaintiffs have not provided this Court with any jurisdictional basis for an award of compensatory damages. See, Seconded Amended Complaint for Declaratory and Injunctive Relief Against Racial and Sexual Discrimination and for Damages (Docket No. 129). Additionally, Capeletti Brothers, Inc. v. Broward County, 738 F.Supp. 1415, 1417 (S.D.Fla.1990), aff'd, Capeletti Brothers, Inc. v. Broward County, 931 F.2d 903 (11th Cir.1991), settled the economic damages issue in this Circuit. Plaintiffs must show that this harm is unique to them and different from other bidders; it would be an irrational businessman who did not factor such costs into his bid. Capeletti, 738 F.Supp. at 1417. Plaintiffs have failed to show harm unique to them, and in light of the standing precedent in this Circuit and in the United States Supreme Court, Plaintiffs’ allegations have no basis in law or fact and thus were frivolous.

Defendants also raise two valid points in their memorandum in support of sanctions. First, Defendants point to the paragraph quoted by Plaintiffs’ Counsel from Coral Construction Co. v. King County, 941 F.2d 910, 930 (9th Cir.1991). Preceding that quote, Plaintiffs stated that the case involved “a requirement that female-owned businesses had to meet only 50% of the subcontracting “goal” (just as in this case a Black-owned business need meet only 50% of the subcontracting goal).” Coral Construction, and specifically the portion from which the quote is taken, dealt with a provision that required an automatic 5% credit on any bid submitted by a female-owned business—it did not involve a subcontracting goal. Furthermore, in the quote itself, Counsel substituted the words [preferential treatment] for the actual woi’ds of the opinion, “fixed five-percent adjustment.” That provision is distinct from the Hillsborough County MBE law in that the 5% credit put all other bidders at an automatic competitive disadvantage.

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Cone Corp. v. Hillsborough County, 157 F.R.D. 533, 1994 U.S. Dist. LEXIS 13651, 1994 WL 526019 (M.D. Fla. 1994).

157 F.R.D. 533 (Cone Corp. v. Hillsborough County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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