Breakout Session # 609 Michael D. Schag Heyl, Royster, Voelker & Allen Date April 27

2. The Dynamics of State & Local Protest Litigation Breakout Session # 609 Michael D. Schag Heyl, Royster, Voelker & Allen Date April 27 Time 1:20 – 2:20 pm NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

3. Introduction • Nature of State & Local Protests • Process • Legal Issues and Strategies NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

4. General Nature of Protest • Objection by interested party to: • Solicitation • Cancellation of solicitation • Award • Cancellation of award NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

5. Common Bases for Protest • Improper sole source award • Irregular award procedure • Public Meetings Act • Defective notice • Bias • Fraud NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

6. Protest Process • Federal process models • Absence of state agency process • Absence of “protest” treatment • Ordinary civil process • Protestor = plaintiff NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

7. The Form of Protest Litigation • Informal Process • Injunction • Temporary Restraining Order (TRO) • Preliminary Injunction (PI) • Trial on the Merits • Appeal NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

8. General Nature of Injunctive Relief • Definition of Injunction • Order from a court to: • Stop doing something; or • Start doing something NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

9. Temporary Restraining Order • Purpose: maintain status quo • Hearing • With notice • Without notice (“emergency TRO”) • Ruling on petition and argument NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

10. TRO – Burden of Proof • Plaintiff’s burden • Defendant heard, if present NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

11. TRO – Standard of Proof • Clearly ascertainable right needing protection • Irreparable harm w/o injunctive relief • No adequate remedy at law • Substantial likelihood of success on merits • Plaintiff will suffer greater harm than Defendant will suffer if issued NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

12. TRO – Practical Considerations • Importance of showing harm b/w present and time for PI hearing • Failure to issue TRO does not necessarily signal plaintiff’s ultimate defeat on the merits NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

13. Preliminary Injunction • Purpose: maintain status quo • Hearing always with notice • Burden of proof: plaintiff • Standard of proof similar to TRO • Evidentiary hearing NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

14. PI – Practical Considerations • Mini-trial dynamic • “likelihood of success on merits” • Mini-trial strategy • spare no effort • Predictive implications of ruling NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

15. Trial on the Merits • Seeking TRO/PI ≠ prerequisite • Obtaining TRO/PI ≠ prerequisite NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

16. Trial on the Merits • Discovery • Agreements on scope • Pretrial motions • Interlocutory appeal • Trial NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

17. “Necessary Parties” • Protestor / Plaintiff • Gov’t Agency / Defendant • Awardee / Intervenor • Public policy re taxpayers • Alignment of interests NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

18. “Best Interests” Ratifications • Expressly prohibited Ks • Void (ultra vires) • Irregularly formed Ks • Voidable NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

19. “Best Interests” Ratification • Ratification statutes • Voidable Ks • Standard • Form of determinations • Plenary power ratification NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

20. De Facto Ratification • No TRO • No affirmative ratifying act • Progress payments made • Actual progress NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

21. Performance Without Stay • Stop work order issued? • Business risk & goodwill • Committed resources • Risk of breach • Quantum meruit recovery NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

22. Performance with Stay • Risk of contempt finding • Implications for quantum meruit recovery NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

23. Litigating Structural Gaps in Law • Plenary powers • Federal practice analogy • Legislative intent • Differing public policy choices NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”

24. Conclusion Michael D. Schag Heyl, Royster, Voelker & Allen (618) 656-4646 mschag@hrva.com NCMA World Congress 2005 “Prime Time: Contract Management at the Core of the Enterprise”