CHICAGO UNITED INDUSTRIES, LTD. V. CITY OF CHICAGO
445 F.3d 940 (7th Cir. 2006)
NATURE OF THE CASE:
FACTS: Believing that CUI (P) had billed the City (D) for goods that P knew it had not
delivered, D, after months of wrangling, notified P that it proposed to cancel all P's
contracts with D and bar it from further contracts with D. P was given 30 days to respond to
the proposal; it responded; and D then terminated the contracts and instituted a three-year
bar. P filed suit in the federal district court in Chicago. P sought injunctive relief on
the ground that D had violated the due process clause of the Fourteenth Amendment by failing
to give P a predeprivation hearing. P moved for a preliminary injunction, and a temporary
restraining order, to prevent the cancellation and debarment. The district court granted the
TRO and then renewed it for another 10. D notified P that it was withdrawing its
cancellation and rescinding the debarment order. D moved to dismiss P's lawsuit as moot. The
district court denied the motion. The temporary restraining order was then extended by
agreement of the parties for another month, to October 31. P then asked the court to modify
the order to prevent D from circumventing it. The order was again extended by consent to
November 21st for the preliminary injunction hearing. Before that date arrived the court
modified the order in favor of P. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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