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Remedies Keyed to Kovacic-Fleischer, 8th
Chicago United Industries, Ltd. v. City of Chicago
Citation:
445 F.3d 940 (2006)Facts
Chicago United Industries contracted with the City of Chicago to provide goods and services. After months of disputes, the City notified CUI that it proposed to cancel all of CUI’s contracts and impose a three-year debarment based on allegations that CUI had fraudulently billed for goods it had not delivered. CUI was given thirty days to respond, after which the City terminated the contracts and instituted the debarment. CUI filed suit in federal district court alleging the City violated the Fourteenth Amendment’s due process clause by failing to provide a predeprivation hearing. The district court issued a temporary restraining order preventing enforcement of the termination and debarment. The City subsequently withdrew the cancellation and rescinded the debarment order, though without prejudice to reinstituting proceedings based on the same allegations. The TRO was extended multiple times by agreement and was eventually modified by the district court to include additional restrictions on the City’s conduct, including provisions preventing the City from awarding certain contracts to other bidders and restricting communications between CUI and City employees. The City appealed, arguing the modified TRO had become an appealable preliminary injunction.
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