In a recent Rock Products article, Making the Cut, Breyana Penn and I explore a recent case in which a federal appeals court agreed with a lower court judge that a state department of transportation could remove an aggregate producer’s quarries from its list of approved suppliers for state highway projects. In Martin Marietta Materials, Inc. v. Kansas Department of Transportation, the Tenth Circuit affirmed the dismissal of Martin Marietta’s (“MM”) suit against the Kansas Department of Transportation (KDOT). MM sued KDOT after being removed from the “approved list” of aggregate supplies for Kansas highway projects.
To the aggregate industry, the ruling has two interesting outcomes. First, the Court determined that MM’s status as an aggregate supplier, as opposed to a highway contractor, meant that MM did not have a contractual relationship with Kansas. Second, the Tenth Circuit agreed with the lower court that MM’s quarries had to comply with the KDOT testing standards. The failure to satisfy the standards was a prerequisite to any potential property interest MM might have had in a highway project. Read the full article here.