South Carolina              
Administrative Law Court
Edgar A. Brown building 1205 Pendleton St., Suite 224 Columbia, SC 29201 Voice: (803) 734-0550

SC Administrative Law Court Decisions

Materials Transport, Inc vs. DOT

South Carolina Department of Transportation

Materials Transport, Inc

South Carolina Department of Transportation

Linda C. McDonald, Esq.

James Coffas, Esq.
Attorneys for the Respondent SCDOT

Douglas Jennings, Jr.
Attorney for Russell Faulk, Shawn Godwin and MTI

L. Morgan Martin, Esq.
Attorney for Palmetto Paving Corporation



This matter arises out of action taken by the Respondent South Carolina Department of Transportation (SCDOT) pursuant to 25A S.C. Code Ann. Regs. 63-306 (Supp. 2001) to disqualify Russell Faulk and Shawn Godwin and any business with which they are affiliated, particularly the named Petitioner Materials Transport, Inc., from participating in contracts with SCDOT because of alleged acts reflecting a lack of business integrity or honesty. Petitioner denies that such acts have taken place and has sought relief from disqualification by requesting a contested case heraing pursuant to 25A S.C. Code Ann. Regs. 63-306(E)(3). The Administrative Law Judge Division has subject matter jurisdiction of this matter pursuant to S.C. Code Ann. Section 1-23-600 (B) (Supp. 2001) and 25A S.C. Code Ann. Regs. 63-306 (E)(3)(Supp. 2001).

Based upon a consideration of the evidence in this matter and other informatoin provided to the Respondent by the Petitioner, including an Affidavit of Shawn Godwin and Russell Fault, dated March 10, 2003, a copy of which is attached hereto and made a part hereof, the parties have reached the following negotiated resolution of this matter:

(1)MTI is disqualified from participation as a prime or subcontractor in any SCDOT work for a period of one year commencing August 29, 2002, and ending August 29, 2003.

(2)Shawn Godwin, Russell Faulk, and any firm with which they are now or shall become affiliated, particularly Palmetto Paving Corporation, are disqualified from participating as a prime or subcontractor on any new SCDOT projects for the three month period commencing March 1, 2003 and ending May 31, 2003. No transfer of the assets or functions of the disqualified firm(s) shall be made during this three month disqualification period.

(3)In lieu of a monetary sanction for the DBE shortfall of $265,642 on File Nos. 16.105B, 16.106, 21.114B and 34.102B, Palmetto Paving and MTI or any other entity with which Godwin or Faulk become affiliated will obtain additional DBE participation on current or future SCDOT projects in the amount of $398,463 (one and one half of the amount of the shortfall) by September 2004. “Additional DBE participation” shall mean DBE participation in excess of what is required by the DBE goal on the applicable projects, proven by statements from DBE’s acknowledging receipt of payments. To the extent the additional DBE participation is not obtained, Palmetto Paving shall pay SCDOT an amount equal to one-half of the amount not obtained in additional DBE participation as a monetary sanction.

(4)SCDOT shall have the right to audit or review the books and records of MTI, Palmetto Paving, or any other entity with which Godwin or Faulk become affiliated to ensure compliance with the above agreements. In the event a violation is found, the violating firm and its principals shall be subject to an additional one-year period of disqualification in addition to other penalties provided by law or regulation.



Marvin F. Kittrell

Chief Administrative Law Judge

May 16, 2003

Brown Bldg.






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