Written by attorney Joshua D. Freeman

Dangers of Enforcing Contracts with Government Entities

Statute of Limitations Problems: The 2011 Utah Court of Appeals opinion in the Alpine Orthopaedic Specialists, LLC v. Utah State University, 2011 UT App 294 is illustrative of the problems that frequently arise in enforcing and seeking judicial review of private party contracts with government entities. In this case a contractor with Utah State University sought judicial review of a decision of the procurement board for what they thought was a breach of their contract with Utah State University. See id. at para. 2-7. The court held that the 6 year statute of limitations for breach of contract did not apply, but that a 20-day statute of limitations applied under the Utah Procurement Code because the breach arose in connection to Utah State's soliciting for bids to replace the contract plaintiff had thus triggering a 20-day statute of limitations. See id. at para. 18-19. This decision was based on the language found in the Utah Procurement Code found in UCA 63G-6-815 and -817.

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