State Ex Rel. J.E. Dunn Construction Co. v. Fairness in Construction Board of the City of Kansas City

960 S.W.2d 507, 1997 WL 791609
CourtMissouri Court of Appeals
DecidedJanuary 27, 1998
DocketWD 53272, WD 53277
StatusPublished
Cited by11 cases

This text of 960 S.W.2d 507 (State Ex Rel. J.E. Dunn Construction Co. v. Fairness in Construction Board of the City of Kansas City) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. J.E. Dunn Construction Co. v. Fairness in Construction Board of the City of Kansas City, 960 S.W.2d 507, 1997 WL 791609 (Mo. Ct. App. 1998).

Opinion

HANNA, Judge.

This appeal is from the circuit court’s order making absolute a preliminary writ of prohibition which ceased the continuation of a hearing before an administrative board. The writ of prohibition was issued by the Honorable K. Preston Dean at the Jackson County Circuit Court. The appellants are the administrative board, Fairness in Construction Board of the City of Kansas City, Missouri (Fairness Board) and the unsuccessful (next lowest) bidder on the project, DiCarlo Construction Company (DiCarlo). The respondents are the bidder who was awarded the contract, J.E. Dunn Construction Company (Dunn), and The City of Kansas City, Missouri (City). The Fairness Board was in the process of hearing an appeal from a City Human Relations Department determination that Dunn, who was subsequently awarded a City construction contract, had made good faith efforts to achieve the minority and women sub-contracting goals set on the project. The City construction contract was for the Terminal C parking garage project at Kansas City International Airport (K.C.I.).

The appellants claim that the circuit court erred in issuing the writ of prohibition because: (1) the circuit court’s basis for issuing the writ {res judicata) was improper; (2) the writ cannot be sustained on the ground that the Fairness Board lacked subject matter jurisdiction; (3) the circuit court issuing the writ did not have subject matter jurisdiction because Dunn failed to exhaust its administrative remedies; (4) the respondents waived their right to seek a writ of prohibition by appearing and participating in the Fairness Board hearings; and (5) the writ was an improper remedy. 1

The Fairness Board was created in December of 1991, via a voluntary Letter Agreement between the Mayor of Kansas City and various minority groups and contractor associations, in order to “maximize participation of all components of the construction industry of Kansas City in construction contracts awarded by [the] City.” The Mayor’s Letter Agreement charged the Fairness Board “with the responsibility of overseeing all construction bids, and to determine if good faith efforts have been met on any given bid” with regard to minority/women subcontracting participation.

On March 7,1996, the City Council passed § 38-84 through § 38-100 of the Code of Ordinances of Kansas City (the “Disparity Ordinance”) which created a minority and women enterprise program. The Disparity Ordinance evidently re-authorized the Fairness Board to “ensure fair representation in the bidding process by socially and economically disadvantaged persons including minorities and women.” Section 38-100. The Disparity Ordinance gives the Fairness Board the responsibility to “hear and decide appeals from the [HJuman [Relations [D]epartment’s deteminátions.” Section 38 — 100(f).

The underlying facts are as follows. In Novembe:- of 1985, the Aviation Department issued bid. specifications for the Terminal C parking ga'rage project at K.C.I. On January 9, 1993, the bide were opened by the City. Dunn was ithe low bidder, and DiCarlo was the second lowest bidder. The Human Relations Department of the City implements the Minority Biusiness Enterprise (MBE) and Women B j.sin°c Enterprise (WBE) program whirt. c í t.. . als for minority and women-owned í i.irráevijes as subcontractors on city eoiisti action contracts of $20,000 or more. Tht? Human Relations Department and the Avifation Department apparently worked with Dunn regarding the bid process and its MBE/ÍVBE participation on the project. 2 The Human Relations Department eventually approved Dunn’s MBE/WBE plan on February £.<5,19S6.

*510 ■ The Aviation Department then initiated the ordinance process before the City Council for the Terminal C contract. The ordinance awarding the contract to Dunn was introduced, and then referred to the. City Council’s Audit and Operations Committee. The Director of the Human Relations Department prepared a memo, dated March 19, 1996, regarding Dunn’s good faith efforts in connection with the pending ordinance, for the Operations Committee’s review. A Docket Memo was also prepared for the Operations Committee that listed Dunn’s MBE/ WBE participation as verified by the Human Relations Department. The Human Relations Department recommended that the City Council approve a good faith exemption and award the contract on the Terminal C project to Dunn. The City Council unanimously approved the ordinance on March 27, 1996, and awarded the contract to Dunn. The ordinance took effect 10 days after the City Council's approval on March 31,1996. Dunn was authorized to proceed with the project, and has done so.

Meanwhile, DiCarlo was taking actions to protest the award of the project to Dunn. DiCarlo contested the procedure by which the Human Relations Department worked with Dunn in order for Dunn to gaik approval of its MBE/WBE plan. On March 13, 1996, DiCarlo filed an action in tjne United States District Court for the We/stern District of Missouri against the Avjiation and Human Relations departments of, the City. Dunn intervened in that action. The Honorable Scott Wright held hearings bn May 16 and 17, 1996. On May 17th, Judge Wright concluded the hearings by indicating that he would be ruling in favor of the i City and would dismiss the action. Later ithat afternoon, DiCarlo filed its Notice of Appeal with the Fairness Board from the: (1)- 'determination and resulting recommendation of the Human Relations Department that Dunn be awarded the contract, and (2) action of the Operations Committee in recommending that the City Council award the project to Dunn. Subsequently, on May 22, 1996, Judge Wright issued his written opinion dismissing the DiCarlo federal action and enter an order granting summary judgment in favor of Dunn and the City.

The Fairness Board then held four hearings regarding the DiCarlo appeal. Counsel for Dunn had previously written the Chairman of the Fairness Board requesting permission to intervene, and it was allowed to participate in the hearings. On July 3, 1996, while the proceeding was pending, Dunn filed a verified petition for writ of prohibition with the circuit court asking for a writ prohibiting the Fairness Board from hearing DiCarlo’s appeal. DiCarlo and the City filed motions to intervene, which were granted by the circuit court. After a hearing on the matter, the circuit court made its preliminary writ absolute in an order dated August 1, 1997. The basis for the writ was that the federal court dismissal order precluded DiCarlo from proceeding with its claim before the Fairness Board under the doctrine of res judicata. This appeal followed.

In the federal action, DiCarlo alleged subject matter jurisdiction under 28 U.S.C. § 1331(federal question jurisdiction) and 28 U.S.C. § 1343(a)(3)(eivil rights and elective franchise). DiCarlo claimed that the actions of the City during the bid procedures violated the Due Process Clause in that it denied them a federally protected property right, which would allow a federal remedy pursuant to 42 U.S.C. § 1983.

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Bluebook (online)
960 S.W.2d 507, 1997 WL 791609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-je-dunn-construction-co-v-fairness-in-construction-board-moctapp-1998.