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Construction Industry News

Contractor Prevails on Affirmative Action Appeal


May 15, 2000


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(A version of this article will appear in the California Construction Law Reporter, published by the West Group.)


By James Acret

It is no small matter to deprive a litigant of the rewards of its efforts, particularly in a case that has been litigated up to this Court and back down again. Such action on grounds of mootness would be justified only if it were absolutely clear that the litigant no longer had any need of the judicial protection that it sought.

Thus did the United States Supreme Court explain its reasoning in permitting Adarand Constructors to continue to defend, on appeal, its favorable District Court judgment in which the Department of Transportation had been enjoined from using race as a basis for determining that a small business was disadvantaged and therefore entitled to preference in competing for federal contract work. Adarand Constructors, Inc. v. Rodney Slater, Secretary of Transportation, __ U.S. __, 2000 Daily Journal D.A.R. 373 (2000)

The Supreme Court held, in Adarand I (Adarand Constructors, Inc. v. Pena, Secretary of Transportation, 515 U.S. 200 (1995)) that race-based measures must be subjected to strict scrutiny and narrowly tailored. On remand the District Court held that federal regulations were not narrowly tailored because they require officials to presume that persons who are black, Hispanic, Asian Pacific, Subcontinent Asian, Native American or female are socially disadvantaged and that this presumption is over-inclusive because it includes members of those groups who are not disadvantaged and also under-inclusive because it excludes members of other groups who are disadvantaged.

The Department of Transportation appealed from the decision of the District Court. Thereafter, the State of Colorado amended its guidelines in response to Adarand I, did away with the presumption of social disadvantage and certified Adarand as socially disadvantaged. Upon hearing this, the Tenth Circuit held that the cause of action was moot, vacated the District Court's judgment and dismissed the appeal. REVERSED.

The Tenth Circuit confused mootness with standing. Voluntary cessation of challenged conduct moots the case only if it is absolutely clear that the allegedly wrongful behavior could not reasonably be expected to recur. Here, the Colorado procedures have not been formally accepted by the DOT, and they are patently incompatible with the DOT regulations and therefore it is far from clear that the DOT will accept Adarand as disadvantaged especially since the Tenth Circuit, by vacating the judgment of the District Court, has eliminated the sole basis for petitioner's certification in the first place.


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©2000 Thelen Reid Brown Raysman & Steiner LLP


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