Highview Engineering, Inc. v. United States Army Corps of Engineers

864 F. Supp. 2d 645, 2012 U.S. Dist. LEXIS 45249, 2012 WL 1078774
CourtDistrict Court, W.D. Kentucky
DecidedMarch 30, 2012
DocketCivil Action No. 3:08CV-647-S
StatusPublished
Cited by5 cases

This text of 864 F. Supp. 2d 645 (Highview Engineering, Inc. v. United States Army Corps of Engineers) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Highview Engineering, Inc. v. United States Army Corps of Engineers, 864 F. Supp. 2d 645, 2012 U.S. Dist. LEXIS 45249, 2012 WL 1078774 (W.D. Ky. 2012).

Opinion

MEMORANDUM OPINION

CHARLES R. SIMPSON, III, Judge.

This action involves a procedure known as “mitigation banking,” an environmental preservation activity supposedly designed to protect the nation’s wetlands. In accordance with the Clean Water Act, 33 U.S.C. § 1251 et seq., the United States Army Corps of Engineers (the “Corps”) requires that persons or business whose activities will adversely impact wetlands in one place compensate for the damage by establishing a new wetland elsewhere that will replace any lost biological functions. “Mitigation banking” is one way a person or entity can fulfill this demand: It pays a third party (a mitigation bank) to create a new wetland [647]*647so that the adverse impact of the person or entity’s activity will not result in a net harm to the environment. See 2010 WL 2106664, 2010 U.S. Dist. LEXIS 50987 (W.D.Ky. May 24, 2010).

The facts of this case have been set out at some length in our prior opinions. Id. We therefore provide only an abbreviated version here. Dr. Darroll Hawkins owns Highview Engineering, Inc., a Kentucky environmental engineering firm. The Wetland Bank of Kentucky (“WBK”), in which Highview was a partner, was party to a contract with the Corps. WBK apparently failed in its duties under that contract, and the Corps sued for breach of contract and of the duty of good faith, negligent misrepresentation, and unjust enrichment. The parties settled the Corps’ claims for $70,000, and a Consent Judgment was entered on March 30, 2006.

In April 2007, Hawkins began working with Dr. Phillip J. Harris, an environmental enhancement entrepreneur, to develop a proposal for a new wetlands project involving the Corps. Hawkins submitted the proposal on Harris’s behalf. Approximately 9]é months later, after a number of unsuccessful attempts to contact the Corp regarding the status of the proposal, a Corps Project Manager, Katie MeCafferty, contacted Harris to discuss the proposal and a meeting was scheduled for April 3, 2008 with Harris, Hawkins and MeCafferty slated to attend. The morning prior to the meeting, Harris received a cell phone call from MeCafferty asking to meet with him that day. They met at Cracker Barrel Restaurant in Paducah, Kentucky, shortly after the call. Hawkins was not invited to attend that meeting. At the meeting outside restaurant, MeCafferty allegedly informed Hawkins that Ann Nunn, an • attorney with the Corps, had stated that (according to the complaint) “she did not want any wetlands mitigation bank proposals in which Dr. Hawkins played a role.” (Compl. ¶ 17.) Harris was also allegedly informed that other Corps employees were “uncomfortable” with having Hawkins involved in any new projects, and it was “suggested” that Harris hire a different consultant. (Id.) The meeting with Hawkins, Harris and MeCafferty scheduled for the following day did not occur. Harris purportedly took McCafferty’s suggestion and ended his business relationship with Hawkins. Additionally, the Corps also allegedly removed Hawkins and Highview from its published “Wetland Consultant List.” 1 Hawkins claims that he and his company were thus debarred from working on any Corps projects.

Hawkins and his company filed suit alleging four causes of action: violation of their Fifth Amendment right to due process of law; violation of their First Amendment right to freedom of association, interference with prospective and existing contractual relationships; and defamation. The first two claims were alleged against both defendants; the latter two were asserted only against Nunn in her individual capacity.

In a prior opinion and order, 2010 WL 2106664, 2010 U.S. Dist. LEXIS 50987 (WD.Ky. May 24, 2010), the court dismissed all of the plaintiffs’ complaint with the exception of Count I, as asserted against the Corps, alleging that the plaintiffs were de facto debarred from doing business with the Corps without receiving constitutionally guaranteed procedural [648]*648protections. The Corps is not permitted to debar a person or entity from competing to win government contracts without affording the process due under the Fifth Amendment. Transco Secur., Inc. v. Freeman, 639 F.2d 318, 321 (6th Cir.1981) (citing Old Dominion Dairy Prods., Inc. v. Sec’y of Def., 631 F.2d 953 (D.C.Cir.1980)) A bidder’s liberty interest is impacted when he is denied the opportunity to bid on government contracts on the basis of a charge of fraud or dishonesty. Id. The Fifth Amendment entitles such a bidder to certain procedural safeguards, including notice of the charges, an opportunity to rebut them, and sometimes a hearing. Id.

We previously found that the plaintiffs’ debarment claim in this case had “at least some superficial appeal” on the merits, id. at *6, 2010 U.S. Dist. LEXIS 50987 at ”18, slip op. at 11, and we held that this court had jurisdiction to entertain the claim. (DN 35). The parties have now filed cross-motions for summary judgment on this remaining claim.

A party moving for summary judgment has the burden of showing that there are no genuine issues of fact and that the movant is entitled to summary judgment as a matter of law. Adickes v. S.H. Kress & Co., 398 U.S. 144, 151-60, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970); Felix v. Young, 536 F.2d 1126, 1134 (6th Cir.1976). Not every factual dispute between the parties will prevent summary judgment. The disputed facts must be material. They must be facts which, under the substantive law governing the issue, might affect the outcome of the suit. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). The dispute must also be genuine. The facts must be such that if they were proven at trial, a reasonable jury could return a verdict for the non-moving party. Id. at 2510. The disputed issue does not have to be resolved conclusively in favor of the nonmoving party, but that party is required to present some significant probative evidence which makes it necessary to resolve the parties’ differing versions of the dispute at trial. First National Bank of Arizona v. Cities Service Co., 391 U.S. 253, 288-89, 88 S.Ct. 1575, 20 L.Ed.2d 569 (1968). The evidence must be construed in a light most favorable to the party opposing the motion. Bohn Aluminum & Brass Corp. v. Storm King Corp., 303 F.2d 425 (6th Cir.1962).

Plaintiffs argue that they have for all practical purposes been debarred from working with the Corps, without any process whatsoever. The Corps concedes that no process was afforded the plaintiffs. It argues that no process was due, as no de facto debarment occurred. Such de facto debarment claims are not unknown to the federal courts. See, e.g., Hellenic Am.

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Cite This Page — Counsel Stack

Bluebook (online)
864 F. Supp. 2d 645, 2012 U.S. Dist. LEXIS 45249, 2012 WL 1078774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/highview-engineering-inc-v-united-states-army-corps-of-engineers-kywd-2012.