Redondo-Borges v. United States Department of Housing & Urban Development

421 F.3d 1, 2005 U.S. App. LEXIS 18436, 2005 WL 2046027
CourtCourt of Appeals for the First Circuit
DecidedAugust 26, 2005
Docket04-2576
StatusPublished
Cited by168 cases

This text of 421 F.3d 1 (Redondo-Borges v. United States Department of Housing & Urban Development) 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
Redondo-Borges v. United States Department of Housing & Urban Development, 421 F.3d 1, 2005 U.S. App. LEXIS 18436, 2005 WL 2046027 (1st Cir. 2005).

Opinion

SELYA, Circuit Judge.

This appeal involves a disappointed bidder who, after apparently winning the procurement race, lost the prize when the contracting agency deemed him (and his company) “nonresponsible.” After careful review, we conclude that the plaintiffs’ federal claims, to the extent they have been preserved, fail to state cognizable causes of action under 42 U.S.C. § 1983. Consequently, we affirm the district court’s dismissal of the action.

I. BACKGROUND

Since the district court decided this case on a motion to dismiss, we derive the raw facts from the plaintiffs’ amended complaint (supplemented, for the sake of completeness, by certain uncontested facts).

The tale began on December 4, 2001, when the Puerto Rico Public Housing Authority (PRPHA) awarded plaintiff-appellant Celta Construction Co. (Celta) a contract to restore the Lirios del Sur housing project in Ponce, Puerto Rico. The funds for that project had been assigned to PRPHA as part of a drug elimination program sponsored by the United States Department of Housing and Urban Development (HUD).

Plaintiff-appellant Miguel Redondo-Borges is Celta’s president. In a letter dated May 21, 2002, PRPHA informed Cel-ta that it was annulling the bid award because it had determined that Redondo-Borges (and, therefore, Celta) was a “non-responsible bidder.” The agency premised that determination on the past actions of Redondo Construction Company (RCC). According to PRPHA, RCC (a firm in which Redondo-Borges served as an officer) had defaulted on a contract with the agency in 1998. That contract related to the same Lirios de Sur housing project. 1

The amended complaint claims, without an iota of detail, that in addition to losing the 2001 bid award, Redondo-Borges and his companies have been suspended from participating in public contracts ever since RCC’s alleged default. The amended complaint also claims that the plaintiffs have lost unspecified private business because a local newspaper published an account of PRPHA’s “nonresponsibility” determination.

II. TRAVEL OF THE CASE

Redondo-Borges, his wife, and their conjugal partnership brought the underlying action in the federal district court on May 19, 2003. They later amended their complaint to add Celta as a plaintiff. The amended complaint named two groups of defendants: HUD, the Secretary of HUD, and two lower-ranking HUD officials, Thomas Teresi and Michael Colon (collectively, the federal defendants) comprise one group and PRPHA and three PRPHA officials, Ileana Echegoyen, Jorge Rivera, and Carlos Laboy-Diaz (collectively, the commonwealth defendants) comprise the other. The plaintiffs advanced claims under 42 U.S.C. § 1983 and the Privacy Act of 1974, 5 U.S.C. § 552a, to which they appended claims under local law for breach of contract and the like. The defendants variously moved to dismiss the *5 amended complaint for lack of subject matter jurisdiction and for failure to state an actionable claim. See Fed.R.Civ.P. 12(b)(1), (6). The district court referred the motions to a magistrate judge, see Fed.R.Civ.P. 72(b), who recommended dismissal. The plaintiffs objected to the magistrate judge’s recommended disposition of the motions.

The district court reviewed the matter de novo. See id. The court ultimately issued a thoughtful opinion in which it (i) dismissed the claims against the federal defendants because the plaintiffs had failed to state any viable cause of action against them; (ii) dismissed the claims for money damages against the commonwealth defendants in their official capacities on the ground of Eleventh Amendment immunity; (iii) dismissed the claims for prospective injunctive relief against the commonwealth defendants in their official capacities because the plaintiffs had failed to state any claim cognizable under section 1983; (iv) dismissed the claims against the commonwealth defendants in their individual capacities based on qualified immunity; (v) dismissed the Privacy Act claims against the commonwealth defendants because the Act applies only to federal agencies; and (vi) elected not to exercise supplemental jurisdiction over the remaining claims, which it dismissed without prejudice pursuant to 28 U.S.C. § 1367(c). See Celta Constr. v. HUD, 337 F.Supp.2d 396, 399-403 (D.P.R.2004). This timely appeal followed.

III. DISCUSSION

We subdivide our analysis of the issues presented into several segments. We begin by elucidating some of the legal standards applicable to motions to dismiss.

A. The Rule 12(b)(6) Framework.

The district court dismissed the plaintiffs action for failure to state a claim upon which relief might be granted. Because there is no heightened pleading standard in civil rights cases, Educadores Puertor-riqueños en Acción v. Hernández, 367 F.3d 61, 66-67 (1st Cir.2004), a district court considering a Rule 12(b)(6) motion must view the plaintiffs complaint through the prism of Fed.R.Civ.P. 8(a)(2)’s notice pleading requirements. Centro Medico del Turabo, Inc. v. Feliciano de Melecio, 406 F.3d 1, 5 (1st Cir.2005). “A complaint satisfies that standard if it contains ‘a short and plain statement of the claim showing that the pleader is entitled to relief,’ and ‘give[s] the defendant fair notice of what the plaintiffs claim is and the grounds upon which it rests.’ ” Id. (alteration in original) (quoting Fed.R.Civ.P. 8(a)(2) and Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)).

The court must “assume the truth of all well-pleaded facts and indulge all reasonable inferences that fit the plaintiffs stated theory of liability.” In re Colonial Mortg. Bankers Corp., 324 F.3d 12, 15 (1st Cir.2003). Those facts may be derived from the complaint, whatever documents are either annexed to it or fairly incorporated into it, and any relevant matters that are susceptible to judicial notice. Centro Medico, 406 F.3d at 5. In that process, however, the court need not credit “bald assertions, unsupportable conclusions, periphrastic circumlocutions, and the like.” Aulson v. Blanchard, 83 F.3d 1, 3 (1st Cir.1996).

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
421 F.3d 1, 2005 U.S. App. LEXIS 18436, 2005 WL 2046027, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redondo-borges-v-united-states-department-of-housing-urban-development-ca1-2005.