YKA Industries, Inc. v. Redevelopment Agency of City of San Jose

Appellant Y.K.A. Industries, Inc. (YKA), appeals from the trial court’s summary judgment in favor of the Redevelopment Agency of the City of San Jose (Agency) and Nina Grayson, a city employee, on YKA’s cross-complaint. In a single cause of action, YKA, a subcontractor on an Agency-approved housing project, alleged a claim against the Agency and Grayson for “deprivation of due process under color of state law” pursuant to 42 United States Code section 1983 based on the Agency’s having asserted a prevailing wage violation against YKA in connection with the construction of the project. YKA sought general and punitive damages and statutory attorney fees. The trial court granted the Agency and Grayson’s motion for summary judgment on the claim. The court concluded that YKA had failed to exhaust mandatory judicial remedies—in the form of a petition for writ of mandate to compel the Agency to afford an evidentiary hearing—before filing a legal action for federal civil rights violations and that the doctrine of exhaustion of judicial remedies therefore barred the action.

YKA appeals, contending that the Agency and Grayson failed to meet their burden on the motion of…