Monterey Mechanical Co. v. Wilson

125 F.3d 702, 97 Cal. Daily Op. Serv. 7099, 97 Daily Journal DAR 11464, 1997 U.S. App. LEXIS 23099, 1997 WL 538757
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 3, 1997
DocketNo. 96-16729
StatusPublished
Cited by48 cases

This text of 125 F.3d 702 (Monterey Mechanical Co. v. Wilson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monterey Mechanical Co. v. Wilson, 125 F.3d 702, 97 Cal. Daily Op. Serv. 7099, 97 Daily Journal DAR 11464, 1997 U.S. App. LEXIS 23099, 1997 WL 538757 (9th Cir. 1997).

Opinion

KLEINFELD, Circuit Judge:

We review denial of a preliminary injunction, regarding a state program setting goals for ethnic and sex characteristics of construction subcontractors.

[704]*704FACTS

California Polytechnic State University, San Luis Obispo (the University) solicited bids for a utilities upgrade. This construction project, expected to take almost two years, will connect all buildings to a central heating and air conditioning plant and install a new electrical distribution system. Monterey Mechanical, the plaintiff-appellant, submitted the low bid, $21,698,000.00, but did not get the job. The second lowest bidder, Swinerton and Walberg, won the contract, with a bid $318,000 higher than Monterey Mechanical’s.

Monterey Mechanical’s bid was disqualified because the company did not comply with a state statute. The statute requires general contractors to subcontract percentages of the work to minority, women, and disabled veteran owned subcontractors, or demonstrate good faith efforts to do so. The required “goals” are “not less than” 15% for minority business enterprises, 5% women, 3% disabled veteran. Cal. Public Contract Code § 10115(c). To count towards fulfilling the goal, a subcontractor must be at least 51% owned and controlled by members of those classes. Cal. Public Contract Code § 10115.1(e).

There were two ways Monterey Mechanical might have complied with the statute. It could have used minority, women and disabled veteran business enterprises for the designated 23% (15% plus 5% plus 3%) “of the contract dollar amount.” Its bid was $21,698,000, so compliance by this means would require subcontracting $4,990,540 to subcontractors of the designated classes.

Alternatively, Monterey Mechanical could comply by demonstrating “good faith effort” to meet the “goals.” The statute requires a bidder using “good faith” as its means of qualifying to contact government agencies and organizations to identify potential subcontractors in the designated classes, advertise in papers “focusing on M/W/DVBEs,”1 and solicit bids from “potential M/W/DVBE subcontractors and suppliers.” The contractor must document its efforts within two days following the opening of the bids, so as a practical matter the solicitation must be fidly accomplished prior to bidding. Dates, times, organizations contacted, contact names, and phone numbers are “needed to corroborate the information.”

Monterey Mechanical did not fully comply with the statute by either method. Its President acknowledges that “Monterey is not eligible for classification as an MBE or a WBE.” It did not subcontract out the required 23% of the contract amount.2 Nor did Monterey Mechanical fully comply with the “good faith” requirement. Monterey Mechanical contacted state and federal agencies and minority and women organizations, advertised to minority and women owned firms, and invited and considered bids from them. But it did not document contact with the University physical planning and development office to identify minority, women, and disabled veteran business enterprises.

Swinerton and Walberg, which won the contract, did not subcontract out at least 23% of the work to firms in the designated classes (and does not claim to be a minority, women, or disabled veteran enterprise). It differed materially from Monterey Mechanical only in that it fully complied with the “good faith” requirement. Unlike Monterey Mechanical, it provided documentation of its contact with the University physical planning and development office to identify minority, women, and disabled veteran business enterprises.

When the University rejected Monterey Mechanical’s bid as non-responsive, Monterey Mechanical requested whatever disparity study California State University had used to justify the goals for the designated classes. The University replied that there was no such study. It took the position that because [705]*705the “goal requirements” of the scheme “do not involve racial or gender quotas, set-asides or preferences,” the University needed no such disparity documentation.

Monterey Mechanical protested the contract award, then sued the University’s trustees and Swinerton and Walberg for a declaratory judgment, injunction, and damages. The theory of the lawsuit is that the statute that caused Monterey Mechanical to lose the contract violates the Equal Protection Clause of the United States Constitution.

The district judge denied the preliminary injunction. Monterey Mechanical has appealed. The denial was based on a legal conclusion that Monterey Mechanical had a low probability of success on the merits.3 No findings of fact were made, nor were any necessary, because there was no dispute as to any of the facts. The facts recited above, from the documents submitted by the parties, are uncontested.

ANALYSIS

We have jurisdiction to review “[i]nterloeutory orders ... refusing ... injunctions” under 28 U.S.C. § 1292(a)(1). While we review its decision not to enter a preliminary injunction for an abuse of discretion, the district court is deemed to abuse its discretion when it “bases its decision on an erroneous legal standard.” American-Arab Anti-Discrimination Comm. v. Reno, 70 F.3d 1045, 1062 (9th Cir.1995). Thus an abuse of discretion is established if the district court applied the incorrect substantive law. International Molders’ and Allied Workers’ Local Union No. 164 v. Nelson, 799 F.2d 547, 551 (9th Cir.1986).4

[706]*706A. Standing.

The district court concluded that Monterey Mechanical lacked standing. Because Swinerton and Walberg was not a women or minority business enterprise,5 and all general contractors, not just non-minority non-women contractors, were bound by the same requirements, the district court concluded that unconstitutional discrimination, even if it existed, did not cause Monterey Mechanical to lose the contract. The idea is that if the government does not discriminate against A, but requires that A discriminate against B, B has standing but A does not. Appellees6 do not argue that Monterey Mechanical lacked standing. We nevertheless consider standing sua sponte, because it goes to jurisdiction. “Standing is a question of law reviewed de novo.” Snake River Farmers’ Assn. v. Department of Labor, 9 F.3d 792, 795 (9th Cir.1993).

The issue of standing is controlled by Northeastern Florida Contractors v. Jacksonville, 508 U.S. 656, 113 S.Ct. 2297, 124 L.Ed.2d 586 (1993). That was another contracting set-aside case. The plaintiff made no showing that it or any of its members would have received particular contracts but for the challenged set-aside ordinance.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Meland v. Weber
E.D. California, 2020
Pacific Community Resource Center v. City of Glendale
994 F. Supp. 2d 1121 (D. Oregon, 2014)
Arizona Dream Act Coalition v. Brewer
945 F. Supp. 2d 1049 (D. Arizona, 2013)
Braunstein v. Arizona Department of Transportation
683 F.3d 1177 (Ninth Circuit, 2012)
Collins v. Brewer
727 F. Supp. 2d 797 (D. Arizona, 2010)
Bova v. City of Medford
Ninth Circuit, 2009
Cleveland Construction, Inc. v. City of Cincinnati
169 Ohio App. 3d 627 (Ohio Court of Appeals, 2006)
Coral Construction, Inc. v. City & County of San Francisco
10 Cal. Rptr. 3d 65 (California Court of Appeal, 2004)
John Carroll v. James Nakatani, in His Capacity as Chairperson/director of the State of Hawaii Department of Agriculture Paul Lamahieu, in His Capacity as Chairperson/director of the State of Hawaii Department of Education Timothy E. Johns, in His Capacity as Chairperson/director of the State of Hawaii Department of Land and Natural Resources Seiji Naya, in His Capacity as Chairperson/director of the State of Hawaii Department of Business Economic Development & Tourism Kazu Hayashida, in His Capacity as Chairperson/director of the State of Hawaii Department of Transportation Raymond Sato, in His Capacity as Chairperson/director of the State of Hawaii Department of Accounting and General Services State of Hawaii Benjamin J. Cayetano, in His Official Capacity as the Governor of the State of Hawaii Office of Hawaiian Affairs Charles Ota Collette MacHado Nalani Olds Nani Brandt Clayton Hee Gladys Brandt Dante Carpenter Ilei Beniamina and Hannah Springer, in Their Capacities as Trustees of the Board of Trustees of the Office of Hawaiian Affairs, Patrick Barrett v. State of Hawaii Benjamin J. Cayetano, in His Official Capacity as Governor, State of Hawaii, Ilio`ulaokanani Coalition, Inc. Victoria Holt-Takamine Piilani Smith Wayne Kaho`onei Panoke Momi Kamahele State Council of Hawaiian Homestead Association Anthony Sang, Sr. Office of Hawaiian Affairs Trustees of the Office of Hawaiian Affairs, Rowena Akana, Huanani Apoliona, Don Cataluna, Linda Dela Cruz, Clayton H.W. Hee, Colette Y. MacHado Charles Ota, Oswald K. Stender, in Their Official Capacity as Trustees of the Office of Hawaiian Affairs, Defendants-Intervenors-Appellees
342 F.3d 934 (Ninth Circuit, 2003)
Carroll v. Nakatani
342 F.3d 934 (Ninth Circuit, 2003)
Columbia Basin Apartment Ass'n v. City of Pasco
268 F.3d 791 (Ninth Circuit, 2001)
Connerly v. State Personnel Board
112 Cal. Rptr. 2d 5 (California Court of Appeal, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
125 F.3d 702, 97 Cal. Daily Op. Serv. 7099, 97 Daily Journal DAR 11464, 1997 U.S. App. LEXIS 23099, 1997 WL 538757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monterey-mechanical-co-v-wilson-ca9-1997.