Hughes-Bechtol, Inc. v. West Virginia Bd. of Regents, HUGHES-BECHTO

CourtUnited States Courts of Appeals. United States Court of Appeals (6th Circuit)
Writing for the CourtBefore EDWARDS and WELLFORD, Circuit Judges, and WEICK; WEICK
Citation737 F.2d 540
Decision Date18 June 1984
Docket NumberNo. 82-3217,INC,HUGHES-BECHTO
Parties, Plaintiff-Appellant, v. WEST VIRGINIA BOARD OF REGENTS, Defendant-Appellee.

Page 540

737 F.2d 540
HUGHES-BECHTOL, INC., Plaintiff-Appellant,
v.
WEST VIRGINIA BOARD OF REGENTS, Defendant-Appellee.
No. 82-3217.
United States Court of Appeals,
Sixth Circuit.
Argued April 4, 1984.
Decided June 18, 1984.

John O. Henry (argued), Estabrook, Finn & McKee, Dayton, Ohio, for plaintiff-appellant.

Victor A. Barone, Deputy Atty. Gen., (argued), Charleston, W.V., James W. Knisley, Dayton, Ohio, for defendant-appellee.

Page 541

Before EDWARDS and WELLFORD, Circuit Judges, and WEICK, Senior Circuit judge.

WEICK, Senior Circuit Judge.

This case originated in the Federal District Court for the Southern District of Ohio, where plaintiff filed its Complaint against the defendant, West Virginia Board of Regents, praying for judgment in the amount of $1,521,826 compensatory and punitive damages and for declaratory relief pursuant to 28 U.S.C. Sec. 2201 and F.R.Civ.P. 57. The Complaint alleged that plaintiff is and was at all times mentioned therein, a corporation duly organized and existing under and by virtue of the laws of the State of Ohio, and that the defendant, West Virginia Board of Regents, is and was a citizen of the State of West Virginia, and that the Court has diversity jurisdiction under and pursuant to 28 U.S.C. Sec. 1332, and federal question jurisdiction under 28 U.S.C. Sec. 1331(a) because a question has arisen under the Eleventh Amendment to the Constitution of the United States.

The defendant, West Virginia Board of Regents, filed a motion to dismiss for lack of jurisdiction alleging that it was not a citizen of West Virginia, but was an agency or alter-ego of the State. The District Court granted the motion to dismiss in an opinion in which it adopted findings of fact and conclusions of law and held that the West Virginia Board of Regents was not a citizen of the State of West Virginia but was in truth and fact an arm or agency of the State, and that diversity of citizenship required under 28 U.S.C. Sec. 1332 for jurisdiction of the Court in the present case did not exist. Hughes-Bechtol, Inc. v. West Virginia Board of Regents, 527 F.Supp. 1366 (S.D.Ohio 1981). The court also denied plaintiff's motion for a preliminary injunction. Plaintiff then filed a motion to alter or amend the judgment, which motion the court denied.

Plaintiff has appealed therefrom to this Court, arguing that defendant is not the alter-ego of the State, and that the suit is not otherwise barred by the Eleventh Amendment. For the reasons hereinafter stated, we affirm.

I

Facts

Pertinent facts were found by the District Court as follows:

1. Hughes-Bechtol, Inc. (also "contractor") is a corporation organized under the laws of the State of Ohio, with a principal place of business in Ohio, and an annual volume of business of approximately thirty million dollars ($30,000,000).

2. Marshall University is a state university located in Huntington, West Virginia. Marshall University has an enrollment of approximately twelve thousand students, and participates in Division I athletics.

3. In 1979, the West Virginia Board of Regents (also "owner") solicited bids in connection with the construction at Marshall University of Henderson Center, which was intended to be a multipurpose physical education facility including a basketball arena seating ten thousand persons, classrooms for the department of health and physical education, and offices for the athletic department. Also included in this project was the renovation of an existing building, Gullickson Hall.

4. Hughes-Bechtol was awarded a contract in the amount of three million, one hundred sixty two thousand, one hundred and seventy-three dollars ($3,162,173.00) for the mechanical work for the Multi-Purpose Physical Education Facility. According to the terms of the contract, the work to be performed was to be commenced upon the date specified in the "Notice to Proceed" given by the Board to Hughes-Bechtol. From the time specified, Hughes-Bechtol would have eight hundred and fifty (850) consecutive calendar days to fully complete the project.

Page 542

5. On April 5, 1979, a purchase order was issued by the State of West Virginia, Department of Finance and Administration for the above contract price.

6. The original anticipated completion date for the Henderson Center Project was April 6, 1981, but at the time of the injunction hearing, the physical activities center was scheduled for occupancy on October 15, 1981, due to delays in the project. At the time of the hearing herein, the project was ninety percent (90%) finished.

7. During the first year of the contract, little progress was made on the construction project. Hughes-Bechtol requested an extension of time and payments for the increased costs due to the delay, but the Board refused, and instead directed that Hughes-Bechtol perform the unfinished work in the time remaining under the contract.

8. Paragraph 7.9.1 of the contract between the Board and Hughes-Bechtol provided that all disputes arising between the owner and the contractor would "be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association," that the agreement to arbitrate "shall be specifically enforceable under the prevailing arbitration law," and that "the award entered by the arbitrators shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof."

9. On December 11, 1980, Hughes-Bechtol filed a demand for arbitration with the Cincinnati office of the American Arbitration Association. The arbitration inquiry was bifurcated, with consideration being first given to whether the issue was one subject to arbitration. On...

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20 practice notes
  • Ernst v. Roberts, No. 02-2287.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (6th Circuit)
    • August 12, 2004
    ...and potentially controlling. See Blake v. Kline, 612 F.2d at 722, see also Hughes-Bechtol, Inc. v. West Virginia Board of Regents, 737 F.2d 540, 541 (6th Cir.1984); Long v. Richardson, 525 F.2d at 75, Hall, 742 F.2d at 303-04. The law of this Circuit is so clear in emphasizing the importanc......
  • Roche v. Lincoln Property Co., No. 03-2064.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (4th Circuit)
    • June 30, 2004
    ...overruled on other grounds by Partington v. Gedan, 923 F.2d 686 (9th Cir.1991); Hughes-Bechtol, Inc. v. West Virginia Bd. of Regents, 737 F.2d 540, 543-44 (6th Cir.1984) (same); Nuclear Eng'g Co. v. Scott, 660 F.2d 241, 250 (7th Cir.1981) (same and noting that real party in interest is to b......
  • Baltin v. Alaron Trading Corp., No. 96-5123
    • United States
    • United States Courts of Appeals. United States Court of Appeals (11th Circuit)
    • November 25, 1997
    ...Serv., 655 F.Supp. 739, 741 (D.Me.1987); Hughes-Bechtol, Inc. v. W. Va. Bd. of Regents, 527 F.Supp. 1366, 1384 (S.D.Ohio 1981), aff'd, 737 F.2d 540 (6th Cir.), cert. denied, 469 U.S. 1018, 105 S.Ct. 433, 83 L.Ed.2d 359 (1984); Paley Assocs., Inc. v. Universal Woolens, Inc., 446 F.Supp. 212,......
  • Zielasko v. State of Ohio, No. C87-2884-A.
    • United States
    • United States District Courts. 6th Circuit. United States District Court of Northern District of Ohio
    • August 18, 1988
    ...621 F.2d 1301, 1303 (5th Cir.1980); Hughes-Bechtol, Inv. v. West Virginia Board of Regents, 527 F.Supp. 1366, 1377 (S.D.Ohio 1981), aff'd, 737 F.2d 540 (6th Cir.), cert. denied, 469 U.S. 1018, 105 S.Ct. 433, 83 L.Ed.2d 359 Accordingly, defendants' motion to dismiss is granted and this case ......
  • Request a trial to view additional results
20 cases
  • Ernst v. Roberts, No. 02-2287.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (6th Circuit)
    • August 12, 2004
    ...and potentially controlling. See Blake v. Kline, 612 F.2d at 722, see also Hughes-Bechtol, Inc. v. West Virginia Board of Regents, 737 F.2d 540, 541 (6th Cir.1984); Long v. Richardson, 525 F.2d at 75, Hall, 742 F.2d at 303-04. The law of this Circuit is so clear in emphasizing the importanc......
  • Roche v. Lincoln Property Co., No. 03-2064.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (4th Circuit)
    • June 30, 2004
    ...overruled on other grounds by Partington v. Gedan, 923 F.2d 686 (9th Cir.1991); Hughes-Bechtol, Inc. v. West Virginia Bd. of Regents, 737 F.2d 540, 543-44 (6th Cir.1984) (same); Nuclear Eng'g Co. v. Scott, 660 F.2d 241, 250 (7th Cir.1981) (same and noting that real party in interest is to b......
  • Baltin v. Alaron Trading Corp., No. 96-5123
    • United States
    • United States Courts of Appeals. United States Court of Appeals (11th Circuit)
    • November 25, 1997
    ...Serv., 655 F.Supp. 739, 741 (D.Me.1987); Hughes-Bechtol, Inc. v. W. Va. Bd. of Regents, 527 F.Supp. 1366, 1384 (S.D.Ohio 1981), aff'd, 737 F.2d 540 (6th Cir.), cert. denied, 469 U.S. 1018, 105 S.Ct. 433, 83 L.Ed.2d 359 (1984); Paley Assocs., Inc. v. Universal Woolens, Inc., 446 F.Supp. 212,......
  • Zielasko v. State of Ohio, No. C87-2884-A.
    • United States
    • United States District Courts. 6th Circuit. United States District Court of Northern District of Ohio
    • August 18, 1988
    ...621 F.2d 1301, 1303 (5th Cir.1980); Hughes-Bechtol, Inv. v. West Virginia Board of Regents, 527 F.Supp. 1366, 1377 (S.D.Ohio 1981), aff'd, 737 F.2d 540 (6th Cir.), cert. denied, 469 U.S. 1018, 105 S.Ct. 433, 83 L.Ed.2d 359 Accordingly, defendants' motion to dismiss is granted and this case ......
  • Request a trial to view additional results

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