Home > Construction Law, Real Estate Law > Coral Construction, Inc. Case upholds ruling against San Francisco’s former 12d Ordinance under Prop. 209

Coral Construction, Inc. Case upholds ruling against San Francisco’s former 12d Ordinance under Prop. 209

In Coral Construction, Inc., v. City and County of San Francisco (2010) (No. S152934. Aug. 2, 2010), the California Supreme Court affirmed the court of appeals decision in a consolidated case, which effectively ended San Francisco’s 12d set aside ordinance.  Originally, this was an action against the City and County of San Francisco brought by non-minority construction companies, challenging the constitutionality of a 2003 version of an ordinance (the 12d ordinance) that preferentially awards public contracts to minority-owned business enterprises (MBE’s) and women-owned business enterprises (WBE’s).  The trial court ruled the ordinance was unconstitutional under Prop. 209, now Article I, Section 31 of the California constitution, and basically enjoined that code from being utilized.  The court of appeals affirmed the trial court ruling in most respects.  Now, in what will likely be the last decision on this controversial matter which has been undergoing appeals for several years, the California Supreme Court has essentially affirmed the lower court rulings.  The net affect is that the former 12d ordinance cannot be implemented as it is unconstitutional.  After the challenges to 12d, San Francisco later enacted what is still referred to as the 14b ordinance, which is designed to cover local business enterprises (LBE’s) and is not race or gender based; the 14b ordinance was not part of this lawsuit.

Nothing herein should be construed as legal advice or creating any attorney-client relationship. Please consult with an attorney for specific legal advice. Thank you.

All Rights Reserved © 2010 by Michael L. Mau, Esq.

The Mau Law Firm

Blog: http://maulaw.spaces.live.com

Website: www.MauLaw.com

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