Garcia-Gonzalez v. Puig-Morales

761 F.3d 81, 2014 WL 3765709
CourtCourt of Appeals for the First Circuit
DecidedAugust 1, 2014
Docket12-2357
StatusPublished
Cited by68 cases

This text of 761 F.3d 81 (Garcia-Gonzalez v. Puig-Morales) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garcia-Gonzalez v. Puig-Morales, 761 F.3d 81, 2014 WL 3765709 (1st Cir. 2014).

Opinion

TORRUELLA, Circuit Judge.

This case involves due process and political discrimination claims related to the procurement of public contracts by independent contractors. Plaintiff-Appellant Manuel A. García-González (“García”) alleges First and Fourteenth Amendment violations and seeks compensatory and punitive damages under 42 U.S.C. § 1983 over the rescission of a bid award for a potential, but unexecuted, insurance brokerage contract with the Puerto Rico government (the “Commonwealth” or the “government”). Defendant-Appellee Juan C. Puig-Morales (“Puig”) was Puerto *84 Rico’s Secretary of the Treasury at the time of these events.

The district court granted summary judgment in favor of Puig on Garcia’s Fourteenth Amendment claim, holding that Garcia had no constitutionally protected property interest in the initial bid award. Subsequently, the district court also granted Puig’s motion for summary judgment on Garcia’s First Amendment claim.

For the reasons set forth below, we affirm the district court’s grant of summary judgment on Garcia’s Fourteenth Amendment due process claim, and we reverse the grant of summary judgment on his First Amendment claim for political discrimination. We remand that claim for further proceedings consistent with this opinion.

I. Background

A. Factual Background

Over an eight-year period, from April 28, 2001, through May 30, 2009, García, a licensed insurance broker, held annual contracts with the Puerto Rico Department of the Treasury (the “Treasury”) for the acquisition of insurance policies for various government agencies. Garcia received sizable commissions for brokering these insurance contracts.

On October 1, 2008, Garcia entered into a one-year professional services contract with the Treasury to acquire insurance policies for the Commonwealth’s Public Buildings Authority, the Americas Port Authority, the Administration of General Services, and the “Portal del Futuro” Public Corporation. Pursuant to the agreement signed by García and the Treasury, the professional services contract could be terminated by either party upon thirty days’ written notice.

García self-identifies as a member of the Popular Democratic Party (“PDP”). For all but the final five months of the eight-year period during which Garcia held contracts with the Treasury, the executive branch of the Puerto Rico government was controlled by governors from the PDP.

On November 4, 2008, however, the incumbent PDP governor lost a general election to Luis Fortuño, a gubernatorial candidate from the opposing New Progressive Party (“NPP”). Governor Fortuño and his Treasury Secretary, Puig, were both sworn into their new offices on January 2, 2009.

Less than three months later, in a letter dated March 20, 2009, Puig notified Garcia that his existing brokerage contract— which was scheduled to expire on September 30, 2009 — would instead be terminated early, with an effective end date of May 30, 2009. The letter further announced that Puig’s office would receive new proposals for insurance brokerage contracts between March 25, 2009, and April 17, 2009. On March 26, 2009, the Treasury published a Request for Proposals (“RFP”) regarding the provision of professional services for the acquisition of insurance policies. The RFP document contained the terms and conditions that were to govern the adjudication proceedings for selecting insurance brokers. The RFP provided, among other things, that:

(1) “[t]he Secretary [of the Treasury] fully reserves the right to revise this RFP, in part or whole”;

(2) the Treasury’s Agency for Public Insurance (“API”) “reserves the absolute right to reject any or all proposals submitted and to limit selections to a determined number of all the best qualified Producers] deemed sufficient to handle the amount of work involved”;

*85 (3) “[a]s part of the process,” API “will evaluate prior perform[anee] of the Producer, if any, as well as their qualifications and experience reflected on their proposals”;

(4) the government “will not be liable in any way whatsoever for any costs or expenses incurred by any person in the preparation of proposals in response to this RFP, nor for the presentation of its proposal and/or participation in any discussions or negotiations”;

(5) the selection of contractors “shall be final, except for the right of the Secretary and API to terminate any designation for reasonable cause”;

(6) selected providers will be informed “about their selection and what next steps are to be taken in relation to such selection”;

(7) “[a]fter the evaluation takes place and the Secretary makes the corresponding decisions, the selected proposals will be subject to the normal Government’s procedural approvals for professional services contracts”;

(8) “[t]he Producer will be compensated with commissions as stated on the Professional Services Contract”; and

(9) “API retains the right to terminate any contracted Producer at any time due to unacceptable performance.”

Garcia submitted his proposal on April 15, 2009, within the deadline prescribed by the RFP. His proposal was received by API on April 17, 2009. On May 15, 2009, the Treasury issued an “Adjudication Notification” letter to García. The letter informed him that his proposal was “favorably considered” by the evaluating board to “continue the process of finalizing the contract,” before he could ultimately sign a professional services contract for the procurement of insurance policies. The accounts contemplated for Garcia’s putative contract were for the purchase of insurance policies for the following governmental instrumentalities: (a) the Corrections Administration, (b) the Administration of Juvenile Institutions, (c) the Department of Education, and (d) the Puerto Rico Technological Institute. These policies accounted for a total of $7,881,350 in estimated insurance premiums, and Garcia asserts that the brokerage contract would have yielded him approximately $450,000 in commissions. The Adjudication Notification requested that Garcia sign and return it; it further outlined the subsequent steps for the ultimate execution of a final professional services contract between the parties.

Garcia proceeded to sign the Adjudication Notification, accepting all of the adjudicated accounts. On May 18, 2009, the Treasury received Garcia’s timely acceptance of the adjudication, along with the corresponding documents required prior to the execution of the brokerage contract, pursuant to the specifications of the Adjudication Notification. A final contract, however, was not executed by the parties.

On May 28, 2009, Garcia received a Treasury letter rescinding the Adjudication Notification, explaining that “[t]he processes carried out produced countless errors in issuing [his] letter, as well as other letters that were also issued.” The letter also stated that Garcia would soon receive a corrected adjudication letter, or that he would be notified of a new date for the distribution of corrected letters.

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761 F.3d 81, 2014 WL 3765709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-gonzalez-v-puig-morales-ca1-2014.