Lot Maintenance of Oklahoma, Inc. v. Tulsa Metropolitan Utility Authority

16 F. Supp. 3d 1316, 2014 WL 1671590, 2014 U.S. Dist. LEXIS 58559
CourtDistrict Court, N.D. Oklahoma
DecidedApril 28, 2014
DocketCase No. 13-CV-0686-CVE-TLW
StatusPublished
Cited by2 cases

This text of 16 F. Supp. 3d 1316 (Lot Maintenance of Oklahoma, Inc. v. Tulsa Metropolitan Utility Authority) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lot Maintenance of Oklahoma, Inc. v. Tulsa Metropolitan Utility Authority, 16 F. Supp. 3d 1316, 2014 WL 1671590, 2014 U.S. Dist. LEXIS 58559 (N.D. Okla. 2014).

Opinion

OPINION AND ORDER

CLAIRE Y. EAGAN, District Judge.

Now before the Court is Defendant’s Motion to Dismiss Based On the Lack of a Justiciable Controversy (Dkt. # 13). Defendant Tulsa Metropolitan Utility Authority (TMUA) argues that Lot Maintenance of Oklahoma, Inc. (Lot Maintenance) has not suffered an injury in fact, that Lot Maintenance’s claim is not fairly traceable to the challenged ordinance, that Lot Maintenance’s injury is not redressable, [1319]*1319that prudential considerations caution against exercising standing, and that Lot Maintenance’s claim is moot. Lot Maintenance has responded and objects to each of TMUA’s contentions.

I.

The City of Tulsa maintains a minority and female owned business enterprise (M7 FBE) program. Dkt. # 2, at 2. In 2007, that program was modified into the Building Resources in Developing and Growing Enterprises program (BRIDGE.DBE). Id. In October 2010, the Tulsa Revised Ordinances were amended to require city contractors who submit bid proposals to make good-faith efforts to utilize female business enterprises (FBE), minority business enterprises (MBE), and other disadvantaged businesses. Id. at 3.

“TMUA is a trust whose primary responsibility is to manage Tulsa’s water works and sanitary sewer systems.” Dkt. # 13, at 1. In July 2013, Lot Maintenance submitted a bid for one of TMUA’s projects, Project No. TMUA ES-2014-WC1, “Cleaning of Sanitary Sewer System Located in Various Areas of the City” (Project). Dkt. # 2, at 4. The notice to bidders for the Project required bidders to comply with Tulsa, Okla., Rev. Ordinances tit. 5, § 110, which requires city contractors to make a good faith effort to utilize M/FBEs and other disadvantaged businesses. Id. The notice also included a copy of City of Tulsa Resolution No. 18109 (1988), which established M/FBE utilization goals, created a requirement that bidders include a sworn statement describing the bidder’s timetable and goals for the utilization of females and minorities and proposed utilization of M/FBEs, and declared that any bid that failed to include the required documents would be considered unresponsive. Id. at 4-5. Additionally, the notice included a copy of the City of Tulsa, Oklahoma Utilization Instructions, which established an overall aspirational project goal of actual utilization between 6% and 10%. Id. at 5; Dkt. # 19, at 16. The instructions stated that bidders who did not make good faith efforts to meet those goals would not be awarded contracts. Dkt. # 2, at 5. Lot Maintenance agreed to comply with the good faith effort requirement and alleges that it made substantial efforts to comply. Id. at 5-6.

Ultimately, Lot Maintenance did not identify in its bid any M/FBE subcontractors that it would utilize, and did not document any of its solicitation efforts in its bid materials. Id. at 6. Only two bids were submitted for the Project. Id. at 6-7. Lot Maintenance bid $984,930, while Ace Pipe Cleaning, Inc. bid $1,073,860. Id. Lot Maintenance was sent an award letter, which informed it that it was the low bidder and contained contract documents. Id. at 7. However, Lot Maintenance was later informed that its bid was being recommended as nonresponsive for failing to comply with M/FBE utilization requirements and BRIDGE.DBE. Id.1 Lot Maintenance alleges that, but for “the City of Tulsa race conscious affirmative action program,” it would have been awarded the Project, as it was the low bidder. Id. A contract for the Project has yet to be awarded. Dkt. # 13, at l.2

Lot Maintenance filed a complaint alleging that the City of Tulsa’s policies, including BRIDGE.DBE and its implementing policies, and Tulsa, Okla., Rev. Ordinances tit. 5, § 1108, — which have been ineorpo-[1320]*1320rated into the bidding procedure for the Project&emdash;violate Okla. Const, art. II, § 36A3 and the Equal Protection Clause of U.S. Const, amend. XIV, § 1. Id. at 8-10. Lot Maintenance seeks monetary, declarative, and injunctive relief. Id. at 10-11. Lot Maintenance seeks an injunction preventing TMUA from awarding the Project to another bidder, reinstating Lot Maintenance’s bid, and awarding the Project to Lot Maintenance. Id. at 11. Lot Maintenance also requests that the Court declare that Tulsa, Okla., Rev. Ordinances tit. 5, § 1108 violates both Oklahoma’s Constitution and the United States Constitution. Id. Additionally, Lot Maintenance appears to be requesting forward-looking injunctive relief that would prevent TMUA from applying the BRIDGE.DBE program to future bid solicitations. See id. at 10-11.

TMUA has filed a motion to dismiss, arguing that Lot Maintenance’s complaint lacks a justiciable controversy. Dkt. # 13. Lot Maintenance responded (Dkt. # 15), TMUA replied (Dkt. # 16), and Lot Maintenance filed a surreply (Dkt. # 19).

II.

Federal courts are courts of limited jurisdiction and, as the party seeking to invoke federal jurisdiction, Lot Maintenance bears the burden of proving such jurisdiction is proper. See Southway v. Cent. Bank of Nigeria, 328 F.3d 1267, 1274 (10th Cir.2003). A court lacking jurisdiction “cannot render judgment but must dismiss the case at any stage of the proceedings in which it becomes apparent that jurisdiction is lacking.” Basso v. Utah Power & Light Co., 495 F.2d 906, 909 (10th Cir.1974). Motions to dismiss under Fed. R.Civ.P. 12(b)(1) “generally take one of two forms. The moving party may (1) facially attack the complaint’s allegations as to the existence of subject matter jurisdiction, or (2) go beyond allegations contained in the complaint by presenting evidence to challenge the factual basis upon which subject matter jurisdiction rests.” Merrill Lynch Bus. Fin. Servs., Inc. v. Nudell, 363 F.3d 1072, 1074 (10th Cir.2004) (internal citation and quotations omitted). Here, TMUA has facially attacked the sufficiency of the complaint’s allegations as to the existence of subject matter jurisdiction.4 Where a motion to dismiss is based on a facial attack, courts “apply the same standards under Rule 12(b)(1) that are applicable to a Rule 12(b)(6) motion to dismiss for failure to state a cause of action.” Muscogee (Creek) Nation v. Okla. Tax Comm’n, 611 F.3d 1222, 1227 n. 1 (10th Cir.2010).

III.

Article III restricts federal courts to the adjudication of “cases or controversies.” U.S. Const, art. Ill, § 2, cl. 1. “The standing inquiry ensures that a plaintiff has a [1321]*1321sufficient personal stake in a dispute to ensure the existence of a live case or controversy which renders judicial resolution appropriate.” Tandy v. City of Wichita, 380 F.3d 1277, 1283 (10th Cir.2004).

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16 F. Supp. 3d 1316, 2014 WL 1671590, 2014 U.S. Dist. LEXIS 58559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lot-maintenance-of-oklahoma-inc-v-tulsa-metropolitan-utility-authority-oknd-2014.