A & K Midwest Insulation, Inc. v. State

35 Ill. Ct. Cl. 767, 1983 Ill. Ct. Cl. LEXIS 95
CourtCourt of Claims of Illinois
DecidedFebruary 8, 1983
DocketNo. 81-CC-0036
StatusPublished

This text of 35 Ill. Ct. Cl. 767 (A & K Midwest Insulation, Inc. v. State) is published on Counsel Stack Legal Research, covering Court of Claims of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A & K Midwest Insulation, Inc. v. State, 35 Ill. Ct. Cl. 767, 1983 Ill. Ct. Cl. LEXIS 95 (Ill. Super. Ct. 1983).

Opinion

OPINION ON MOTION TO DISMISS

Holderman J.

Claimant filed a petition before this Court claiming that it was the lowest bidder on the ventilation work for a new school in Metropolis, Illinois. The bids were awarded by the Capital Development Board of the State of Illinois. Claimant seeks to recover lost profits based on the alleged breach of statutory duty to accept the lowest responsible bid.

The Respondent, the State of Illinois, in its motion to dismiss, sets forth that Claimant was not the lowest bidder, but that a firm by the name of Eater Sheet Metal was the lowest bidder, and therefore the contract was awarded to it. Apparently from the records before us, the bid was broken down into a base bid and additional for alternate work. The State admits that the Claimant was the lowest bidder on the base bid. But considering the base bid along with the alternate bid, then the total of the two results in Eater Sheet Metal having the lowest total, and therefore was awarded the contract.

Attached to the motion to dismiss was a letter from the Capital Development Board setting forth these facts together with a copy of the bid tabulations of the Capital Development Board.

The documents attached to the motion to dismiss were submitted under Rule 14 of the Court, which states that all records and files maintained in the regular course of business by any department, board, agency, commission or authority of the State, and all departmental reports made by any office relating to any matter or case pending before the Court shall be prima facie evidence of the facts set forth therein. In response, Claimant does not deny the contention of the Capital Development Board’s letter, but states under Rule 20 the State had the obligation of filing an affidavit setting forth the facts. Rule 20 requires an affidavit when facts do not appear of record.

The State claims that attaching the letter and the bid tabulation from the Capital Development Board made these documents a matter of record under Rule 14. With this we agree. In addition, it is to be noted that Claimant has not contradicted in any way the facts set forth in the State’s motion.

The motion to dismiss is hereby allowed.

OPINION

Holderman, J.

In September of 1979, Respondent took bids for ventilation work for a new school in Metropolis, Illinois. Claimant, a construction firm, submitted a bid on this project but Respondent accepted the bid of another contractor and, as a result, Claimant alleges it lost profits in the amount of $62,789.72, and suit is brought for said lost profits.

This case was originally dismissed on motion of Respondent on the basis of a departmental report of the Capital Development Hoard which stated that Claimant’s bid was not the lowest bid on the proposed project.

Claimant filed a petition for rehearing under Rule 22 of this Court which alleged that Claimant had submitted the lowest bid and the departmental report, submitted under Rule 14, was in error. The order of this Court dismissing this cause was set aside and the matter was submitted to a commissioner for hearing.

Respondent’s position at the hearing was summarized by the Assistant Attorney General as follows:

“Any mistakes in computing the bids were the responsibility of the Claimant due to the negligence of the Claimant in misusing the bid forms which were submitted and in using the wrong bid form which set forth an inherent discrepancy in the bids which resulted in disqualification of Claimant’s bid.”

Respondent takes the position that Claimant’s bid was not in substantial conformity with the bidding documents, thereby violating Article 9.03(a)7 of the Revised Standard Documents for Construction, which were made a part of the contract by reference in this case, thereby resulting in the problem that was presented in this case.

At the hearing, James Alexander, one of the owners of the Claimant, .testified that his company was qualified to do work for the Capital Development Board and that he was experienced at having done many jobs for the State of Illinois. Claimant’s exhibit No. 2 was not submitted to Claimant at the time the bid forms were sent out by Respondent. Claimant’s exhibit No. 2 is the bid form which Respondent claims should have been filled out and which would have removed the discrepancies from the bid documents in this cause. As a result of Claimant’s failure to use bid forms submitted as Claimant’s exhibit No. 2, the dust collecting system had been included in Claimant’s base bid and was submitted by Claimant’s competitor as an alternate bid on the bid form identified as Claimant’s exhibit No. 2.

Claimant’s exhibit No. 4 was prepared by Claimant to show the breakdown of material costs, labor and profit which Claimant expected to make on the job in question.

It appeared at the hearing in this cause that subsequent to the original package of bid documents received by various bidders, including Claimant, an additional addenda of bid forms were sent out, including the bid form introduced as Claimant’s exhibit No. 2. It appears that the successful bidder in the case at bar followed the instructions in submitting. its bid in accordance with Claimant’s exhibit No. 2 and the Claimant in the case at bar did not utilize Claimant’s exhibit No. 2 but utilized the original package of bid forms that had been sent out by the State to prospective bidders .

Donald R. Gaddis testified for Claimant that he was the estimator for Claimant and prepared the bid forms. Gaddis testified that he did not receive Claimant’s exhibit No. 2. He testified that he did not open the mail, but that Mr. Burton, the vice president of the Claimant company, opened the mail.

Mr. Burton testified that he was the vice president of the Claimant company. Burton testified that although he opens the mail, he does not read matters pertaining to sheet metal, and he would have placed these papers once received from the Capital Development Board on Mr. Gaddis’ desk.

Mr. Viar testified for the Respondent that he was the manager of the contracts and pre-qualifications section of Respondent’s Capital Development Board. Viar testified that addendum No. 6 to the project’s specifications would have been furnished to all contractors of record in the architect’s office who had taken out plans and specifications on the Metropolis school property. Viar testified that had the alternate bid form introduced in evidence as Claimant’s exhibit No. 2 been omitted from the papers sent that the receiver would have been alerted to the discrepancy by references made to the alternate bid form in the documents.

Viar testified that the bid submitted by Claimant in the present case was not in substantial compliance with the State’s standard documents for construction in that the ventilation bid was not bid in the way that the Capital Development Board asked them to bid the alternate. The witness also testified that the bid submitted by Claimant’s competitor was in accordance with the bidding requirements.

The difference between the bid of the Claimant and the bid of Claimant’s competitor was that Claimant’s bid form failed to bid the dust collectors as an alternate.

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Bluebook (online)
35 Ill. Ct. Cl. 767, 1983 Ill. Ct. Cl. LEXIS 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-k-midwest-insulation-inc-v-state-ilclaimsct-1983.