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The Changes in Contract Rights that Trigger a Hearing

By Eric L. Lipman

Likewise among the unpublished opinions issued on Tuesday, a panel of the Minnesota Court of Appeals held that a local housing authority was not required to hold a hearing if the agency decided not to use the services of a particular housing vendor in the future.

Alleging that the vendor was in fact in living in an apartment being subsidized in favor of his paramour, in violation of the program rules, the agency cancelled the vendor?s Section 8 contracts and sought to set-off the amount of the improper granted subsidies against payments that were due under four other housing program contracts.

As the panel reasoned, the contract termination did not oblige a separate pre-termination hearing because the vendor?s rights ?are no different than those arising when a buyer terminates a practice of purchasing goods or services from a particular vendor.? (The vendor did, however, have a hearing on the agency?s set-off claims.)

The panel?s complete analysis is accessible here.

Full post as published by Within the Scope on April 12, 2008 (boomark / email).