Unable to use affirmative action to get access to state highway contracts, minority firms are turning to federal and state law to make their case.
A federal lawsuit claims the N.C. Department of Transportation and white contractors working for it have discriminated against minority-owned firms seeking DOT contracts. The state and
white-owned companies, they say, violate Title VI of the Civil Rights Act of 1964, which bars discrimination in federally-assisted programs and Article I, Section 19 of the North Carolina Constitution, which
guarantees due process. The plaintiffs seek an injunction of federal funds to the state for construction programs.
"Substantially all of the prime contracts awarded by (DOT) in the past
five years have been awarded to businesses owned by Caucasian persons," said the lawsuit filed in Greensboro federal court Aug. 4.
The lawsuit seeks unspecified damages and an order from the court that DOT has violated federal civil rights law.
DOT spokesman Bill Jones said last Friday the department was reviewing the lawsuit and there was
no public comment on it.
Frank Emory, a Charlotte attorney and member of the state's transportation board, said using the
federal law is a departure from traditional means of redressing grievances. The board sets policy for the department, but is not named in the suit.
"It sounds like we're going to have an interesting ride," he said.
The lawsuit was filed for Fletcher Waden Jr. of Winston-Salem, owner of Waden Supply Co., and
the Carolina Associated Minority Contractors of Raleigh.
"I have waited for this opportunity for many years," said Walden. "I have waited for this opportunity
for many years. We will finally get our day in court and the justice we deserve."
"We believe that the practices and the policies established are unlawful, they are purposeful. It is
rooted in racism," said attorney Jonathan Koffa of Zebulon.
DOT receives $400 million in federal funds for its $2 billion annual budget. Koffa said the federal
money is supposed to be spent in accordance with rules established by federal civil rights law.
Waden said in a statement from Koffa that he had "waited for this opportunity for many year. We
will finally get our day in court and the justice we deserve."
The lawsuit contends that many white contractors will use only white subcontractors on highway
jobs, a practice it said DOT knows about but doesn't stop. Minority contractors, who earned 5 percent of state highway contracts in 1994, now receive 1.28 percent, according to Troy Watson,
president of the N.C. Black Chamber of Commerce and a CAMC executive officer.
DOT inspectors also apply different standards to work performed by black contractors and subcontractors, the lawsuit said.
"Work performed by Caucasian contractors that does not meet contract and NCDOT specifications is allowed to pass inspection, but work performed by plaintiffs and other African
American contractors which meet contract and NCDOT specifications is routinely failed," the lawsuit said.
White contractors, not named in the lawsuit, were accused of practices the complaint said were
known to and tolerated by DOT officials:
- Refusing a subcontract bid from a black firm even though it was lower than others.
- Telling black-owned firms not to bother making a bid.
- Forcing black firms to do work below their cost and conspiring with suppliers to delay delivery to force minority firms off a job.
- Issuing one check to several black subcontractors, but issuing individual checks to white subcontractors and refusing to pay black-owned firms promptly.
- Telling white subcontractors the amount of bids from black subcontractors
Emory said he has pushed for policies that give historically underutilized businesses, or HUBs, the opportunity to compete for state business. If the state isn't in compliance, he said, changes should be made.
"I don't know what all the practices are" as it relates to DOT's contract process, Emory said. "I'd be very interested in how this plays out. I want us to do this the right way so everybody has a
chance."
