AGC Sues State Over MBE Set-Asides

Kegler Brown Construction Newsletter

AGC has sued the State of Ohio in Federal Court to have the Ohio Minority Business Enterprise Act declared unconstitutional and to enjoin the construction of the Toledo Correctional Institution project which featured a set-aside contract worth approximately 20% of the $50 million project. The case has been assigned to Judge Graham who earlier determined the City of Columbus set-aside program to be unconstitutional. The Columbus case is currently on appeal and awaiting a decision by the Sixth Circuit in Cincinnati.

There is also a case (Ritchey Produce) pending in the Ohio Supreme Court on this issue. One of these three pending cases may well become the landmark case establishing the law in Ohio on MBE set-aside contracts.