Yeager Asphalt, Incorporated v. Charter Township of Saginaw

CourtDistrict Court, E.D. Michigan
DecidedApril 2, 2021
Docket1:20-cv-11022
StatusUnknown

This text of Yeager Asphalt, Incorporated v. Charter Township of Saginaw (Yeager Asphalt, Incorporated v. Charter Township of Saginaw) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yeager Asphalt, Incorporated v. Charter Township of Saginaw, (E.D. Mich. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN NORTHERN DIVISION

YEAGER ASPHALT, INC., and YEAGER PAVING MATERIALS, LLC,

Plaintiffs, Case No. 1:20-CV-11022 v. Hon. Thomas L. Ludington

CHARTER TOWNSHIP OF SAGINAW,

Defendant. _______________________________________/ ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT, DENYING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT, DENYING PLAINTIFFS’ MOTION FOR LEAVE TO FILE SUPPLEMENTAL AUTHORITY AS MOOT, AND DISMISSING THE COMPLAINT

This matter is before the Court pursuant to the parties’ cross-motions for summary judgment. ECF Nos. 12, 13. Plaintiffs Yeager Asphalt, Inc. and Yeager Paving Materials, LLC allege that Defendant Charter Township of Saginaw violated their rights under the Fourteenth Amendment Equal Protection Clause by excluding them from bidding on a contract to the benefit of a competitor. ECF No. 1. For the reasons stated below, Defendant’s Motion for Summary Judgment will be granted, Plaintiffs’ Motion for Summary Judgment will be denied, Plaintiff’s Motion for Leave to File Supplemental Authority will be denied as moot, and the Complaint will be dismissed. I. A. Plaintiff Yeager Asphalt, Inc. (“Yeager Asphalt”) is a paving contactor that performs “almost any type of paving job except for highway[s].” ECF No. 13-1 at PageID.232 (Mark Yeager deposition transcript). Plaintiff Yeager Paving Materials, LLC (“Yeager Materials”) is a manufacturer that produces asphalt for commercial paving.1 ECF No. 13-2 at PageID.256 (Bradley Lewinski deposition transcript). Yeager Asphalt and Yeager Materials are separate legal entities owned by Mark Yeager. ECF No.13-1 at PageID.233. Yeager Asphalt often sources asphalt from Yeager Materials, but the two have no exclusivity agreement, and Yeager Asphalt sometimes relies on other manufacturers. Id.

In 2019, Defendant Charter Township of Saginaw (the “Township”) issued a bid request for the “removal and replacement of [the] asphalt shoulder” at 1740 Midland Road, in Saginaw, Michigan (the “Midland Road Project”). ECF No. 12-2 (bid request). The request included a provision stating, “Saginaw Charter Township requires asphalt from Ace-Saginaw Paving Company to meet MDOT specifications and proof of purchase from Ace-Saginaw. If contractor [sic] does not show proof of purchase, Saginaw Charter Township will refuse payment.”2 Id. at PageID.82. Ace-Saginaw Paving Company (“Ace-Saginaw”) is an asphalt manufacturer that supplies commercial asphalt to contractors, including Yeager Asphalt. ECF No. 13-1 at PageID.233. Ace-

Saginaw operates an MDOT-certified asphalt plant. ECF No. 13-10 at PageID.317 (Ace-Saginaw webpage). In response to an interrogatory, the Township explained that it included the Ace- Saginaw requirement as part of its “determin[ation] that, in order to ensure the quality of asphalt materials used by its asphalt contractors, it would require that asphalt mixes meet MDOT specifications and/or be sourced from an MDOT-certified asphalt plant.” ECF No. 12-6 at PageID.99. Yeager Asphalt did not bid on the Midland Road Project. ECF No. 13-1 at PageID.237. At

1 Yeager Materials does business as “U.S. Paving & Stone Materials,” a name which is often mentioned in the briefings and pleadings. 2 For ease of reference, this specification is referred to herein as the “Ace-Saginaw requirement.” his deposition, Mark Yeager, on behalf of Yeager Asphalt, testified that he first learned of the Midland Road Project when another contractor contacted him about it sometime before the bid was closed. Id. at PageID.237. Nonetheless, when asked why Yeager Asphalt did not bid on the Midland Road Project, he stated that it was because the company was not notified of the bid request in time. Id. Indeed, in response to a request for admission, Yeager Asphalt asserted that it was

ordinary for the Township to notify contractors of bid requests and that, despite this “custom,” the Township did not notify Yeager Asphalt of the Midland Road Project. ECF No. 13-6 at PageID.289. The Township’s official purchasing policy, however, does not require bid requests to be forwarded to contractors but instead states that for “purchases greater than $500 but less than $10,000, . . . [a] minimum of three (3) quotes shall be obtained either by telephone, personal contact, advertisement, or online.” ECF No. 13-3 at PageID.277. During his deposition, Yeager was asked why the Township might have included the Ace- Saginaw requirement. ECF No. 13-1 at PageID.238. He first speculated that “maybe somebody at Ace [was] giving [the Township] a kickback.” Id. at PageID.238. He then offered certain hearsay

information about Bradley Lewinsky, one of Yeager’s salesmen, and Alan Messing, a Township employee that works on bid solicitations. Id. at PageID.238. Yeager testified that according to Lewinsky, Messing had been “told by his superiors not to contact [Yeager Asphalt] because they did not want [Yeager Asphalt] to do work with them.” Id. Lewinsky was subsequently deposed as a representative for Yeager Materials. When asked about his conversation with Messing, Lewinsky testified that he had met Messing casually at a neighbor’s house sometime after this case began. ECF No. 13-2 at PageID.261. Messing apparently told Lewinsky that Messing had prepared the bid request for the Midland Road Project and that “people above [him]” had instructed him to include the Ace-Saginaw requirement.3 Id. Lewinsky’s version of the conversation did not include any mention of Township instructions not to contact Yeager Asphalt.4 See id. Later in his deposition, Yeager offered three reasons for why, in his opinion, the Township had “excluded” Yeager Asphalt from the Midland Road Project. ECF No. 13-1 at PageID.238–39.

First, Yeager Asphalt previously used the wrong asphalt mix in a project with the Township seven or eight years ago. Id. at PageID.239. The mistake ultimately caused a “mile of concrete [] to be tore up.” Id. at PageID.239. Second, Yeager Asphalt again used the wrong asphalt mix in a driveway project with the Township—though, in that instance, Yeager maintained that the fault was that of an unrelated engineer who specified the mix. Id. Third, “a few years” before the Midland Road Project, Yeager had sent a letter to the Township complaining that Yeager Asphalt job signs were being taken down. Id. Yeager claimed that he and a Township supervisor had a “back and forth” exchange on the issue. Id. Yeager admitted, however, that he had no evidence of ill-will and that he was merely speculating. Id.

B. Three contractors submitted bids for the Midland Road Project. ECF No. 13-5 (Midland Road Project bids); ECF No. 13-8 at PageID.302–03 (Township interrogatory responses). The contract was ultimately awarded to L.M. Satkowiak & Sons, Inc., who bid the project at a cost of $2,340. ECF No. 13-5 at PageID.283; ECF No. 13-8 at PageID.303. Since the Midland Road Project, the Township has removed the Ace-Saginaw requirement

3 In response to an interrogatory, the Township identified Herb “Sonny” Grunwell as the Township official who determined that the Ace-Saginaw requirement should be included. ECF No. 13-8 at PageID.302. Grunwell was the former Township Director of Public Services and is now retired. Id. It is unclear whether any discovery was sought from Grunwell. 4 It is unclear whether any discovery was sought from Messing. from its bid requests and now simply requires “asphalt mixes that meet MDOT specifications from MDOT certified asphalt plant.” See ECF No. 13-6 at PageID.290 (Yeager Asphalt admissions); 13-7 at PageID.295 (Yeager Materials admissions); ECF No. 13-9 at PageID.314 (Township bid request). Yeager Asphalt submitted bids on two Township projects after the Midland Road Project. See ECF No. 13-9 (Yeager Asphalt bids). A hand-written notation indicates that these bids were

received in August 2020. Id.

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Yeager Asphalt, Incorporated v. Charter Township of Saginaw, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yeager-asphalt-incorporated-v-charter-township-of-saginaw-mied-2021.