ABA Government Law News

State and Local

A 60-Second Update on What’s Happening

Vol. 1 # 5, September, 2004

Investment Tax Credit Violates Commerce Clause: In a case challenging Toledo's tax credits to DaimlerChrysler to build a Jeep plant that employs about 3,800 workers, the Sixth Circuit has held Ohio's investment tax credit unconstitutional under the dormant Commerce Clause. The opinion, which puts at risk similar laws in many states, may be appealed and numerous states are likely to take an interest in the case. http://pacer.ca6.uscourts.gov/cgi-bin/getopn.pl?OPINION=04a0293p.06

Government Lawyers and Lawyers in Government and Their Clients: After a city council member voted in favor of a construction moratorium, his firm's client, deeming itself adversely affected by the ordinance, sued the lawyer and the firm for malpractice. In Joe v. Two Thirty Nine Joint Venture, the Texas Supreme Court held in favor of the lawyer and the law firm, finding the matter beyond the scope of representation. The court also found the lawyer was immune from liability for his official actions. In another case, a lawyer, after suing a city on behalf of a client, went to work for the city attorney's office. The client wasn't happy and sought to disqualify the entire office. In City of Santa Barbara v. Superior Court of Santa Barbara County, the California Court of Appeal, finding city attorney's offices unlike private law firms, refused the request. http://www.supreme.courts.state.tx.us/Opinions/HTMLopinionInfo.asp?OpinionID=2000496

Local Government Defamation under Federal Law: Interpreting the "stigma-plus" doctrine, the Second Circuit dismissed a case against a city and city officials who allegedly defamed the operator of a banquet facility. The court found lacking a sufficient allegation of the necessary 'material state-imposed burden," which must exist in addition to defamation. See Sadallah v. City of Utica (2nd Cir. Sept. 2004). Paul v. Davis, 424 U.S. 693 (1976), is the leading Supreme Court case. http://www.ca2.uscourts.gov:81/isysnative/RDpcT3BpbnNcT1BOXDAzLTkwNTVfb3BuLnBkZg==/03-9055_opn.pdf#xml=http://10.213.23.111:81/isysquery/irl1a9c/8/hilite

Procurement Woes: The first week of this month witnessed the reporting of a flurry of criminal prosecutions against state officials for violations of state procurement laws. Separate newspapers reported on bidding scandals from Illinois, Connecticut, Wisconsin, and Maryland. In Connecticut, the state is attempting to subpoena the governor's legal counsel, but has been rebuffed by the Second Circuit. That decision has not been formally released as the court is considering a petition for rehearing. As it happens, the Section is co-sponsoring a CLE teleconference on State and Local Bid Protests on October 20. We will email details on that conference soon.

Billboard Standing: The Eleventh Circuit's holding in Granite State Outdoor Advertising, Inc. v. City of Clearwater, 351 F.3d 1112 (11th Cir. 2003), that billboard companies have standing only to challenge the part of an ordinance pursuant to which it was denied a permit and thus lack standing to challenge the entirety of a sign ordinance is before the U.S Supreme Court on a petition for certiorari. Signlaw.com (see item below) reports that this pro-government holding has been the basis for at least seven lower federal court decisions dismissing or limiting sign company suits. It's worth keeping an eye on. http://www.ca11.uscourts.gov/opinions/ops/200214434.pdf

Sign Law and Other First Amendment Issues: Need information on sign law? Signlaw.com is a website that covers legal developments on the regulation of signs, billboards, newsracks, as well as public forum matters and other free speech topics. A newsletter is available. http://signlaw.com