Allied Fuels, Et Ano., V. State Of Washington, Et Ano.

CourtCourt of Appeals of Washington
DecidedMay 31, 2022
Docket82494-5
StatusUnpublished

This text of Allied Fuels, Et Ano., V. State Of Washington, Et Ano. (Allied Fuels, Et Ano., V. State Of Washington, Et Ano.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Fuels, Et Ano., V. State Of Washington, Et Ano., (Wash. Ct. App. 2022).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

ALLIED FUELS† and JAMES HASTY, DIVISION ONE Appellants, No. 82494-5-I v. UNPUBLISHED OPINION STATE OF WASHINGTON, Department of Enterprise Services; and RENEWABLE ENERGY GROUP, an Iowa corporation,

Respondents.

DWYER, J. — Allied Fuels and James Hasty (collectively Allied Fuels)

appeal from the trial court’s orders granting summary judgment to Renewable

Energy Group (REG) and the Washington State Department of Enterprise

Services (the Department). Allied Fuels asserts that the trial court erred by

dismissing various claims on summary judgment. Additionally, Allied Fuels

contends that the trial court erred by denying, in part, a motion wherein Allied

Fuels sought to amend its first amended complaint to advance a claim of

negligent misrepresentation against the Department. Because Allied Fuels fails

to establish an entitlement to relief on any of these claims, we affirm.

I

In December 2017, the Department issued a request for proposal,

denominated as RFP 01817, for a contract related to fuel supply. Under this

† The record indicates that the correct name of the appellant is Allied Fuel, LLC. For reasons unexplained in its briefing, appellant refers to itself as Allied Fuels. Throughout this opinion, we refer to the party in the same manner that it has referred to itself. No. 82494-5-I/2

request for proposal, the Department sought to contract with a single fuel

refinery, which would, in turn, subcontract with fuel distributors. The request also

required any refinery submitting a proposal to submit an “inclusion plan.” Under

this inclusion plan, the refinery was required to identify small and minority owned

businesses that would perform as subcontractors for the project.

In May 2017, before the Department issued its request for proposal, two

employees of the Department contacted James Hasty to organize a meeting with

him. Hasty, who is Black, owned a fuel distribution company, Allied Fuels. That

same month, Hasty met with three employees of the Department to discuss the

request for proposal that the Department planned to issue. These employees

encouraged Hasty to reach out to REG to “establish a relationship.”

In January 2018, Hasty approached REG to discuss the Department’s

request for proposal. Hasty informed Todd Ellis, REG’s director of regional

sales, that Allied Fuels was designated as a minority business enterprise in

Washington and also provided fuel distribution and delivery services.

Thereafter, Allied Fuels and REG engaged in a series of negotiations

regarding Allied Fuels’ potential role as a subcontractor to REG in the event that

REG was awarded a master contract from the Department.

On January 18, 2018, Hasty sent a document to Ellis that was entitled

“Re: Joint Venture proposal – Washington Enterprise Service Fuel Contract.”

This document stated: “Allied Fuel LLC (‘Allied’) is pleased to submit this

proposal for services to strengthen Renewable Energy Group’s (‘REG’) execution

of the WA DES Fuel Contract in the event REG is awarded the Master Contract.”

2 No. 82494-5-I/3

The document outlined 13 services that Allied Fuels was willing to provide in the

event that REG was awarded the master contract. Allied Fuels did not state that

it would provide fuel distribution services. In exchange for providing the services

contained within this proposal, Allied Fuels requested that it receive “forty cents

($0.40) per gallon for total delivered annual gallons with payment terms to be

determined in the event of award for WA DES RFP.”

That same day, REG submitted a bid to the Department for the master

contract. In its bid submission, REG listed Allied Fuels as both a fuel distributor

and a certified diverse subcontractor with whom REG intended to work. REG

described the nature of the services that it anticipated to be provided by Allied

Fuels as “[s]upply, transportation, tank monitoring, [and] emergency planning.”

REG also represented that the “[a]nticipated percent of total contract amount”

allocated to Allied Fuels would be 5 percent.

Five days later, Ellis responded to Allied Fuels’ proposal via an e-mail

message. In this communication, Ellis identified various “key terms” that Allied

Fuels would need to agree to in order “to progress further.” With regard to these

terms, Ellis also stated that “REG is pleased to provide the following non-binding

terms to progress our conversations forward.”

That same day, Hasty replied to Ellis’s e-mail message. Therein, Hasty

identified three proposed terms to which he did not agree. The following

emphasized language is text that was added by Hasty in response to Ellis’s

proposed terms:

(1) “REG is proposing .07–.10 a gallon for services performed by Allied Fuels. Not agreeable. Allied will agree to .30 cpg on all

3 No. 82494-5-I/4

products awarded along with a 30% guarantee of the total Diverse Business annual spend amount.” (2) “If awarded [the] contract, REG reserves the right to further negotiate final service fee w[ith] Allied Fuels. Not Agreeable. This will be based on Allied’s provided service capabilities and business planning. All work determined by the initial agreement will be final and any additional work can be negotiated.” (3) “Due to the lack of information regarding details of the support services and proposed partners, REG may select at its discretion which services and partners Allied Fuels will support for the Fuel Contract. Pursuant to Allied’s most recent written proposal dated January 18, 2018 at 10:44am (please see attached), these are the services Allied will provide.”

(Emphasis added.)

On January 29, 2018, Ellis sent Hasty an e-mail message containing

revised proposed terms, which were essentially the same as the terms that Ellis

proposed to Hasty on January 23. The only difference was the language used to

describe the second proposed term that Hasty did not agree to on January 23. In

Ellis’s January 29 e-mail message, this second proposed term read: “Based on

Allied’s proposed service capabilities and business planning REG and Allied will

finalize total service fees.” In a response to Ellis’s January 29 e-mail, Hasty did

not agree to the same three terms with which he had previously disagreed.

Also on January 29, Ellis sent Hasty a text message, which stated: “James

thank you for the feedback. We will not be able to meet you at that price point.

We appreciate the opportunity and look forward to finding ways to work together

in the future.” On January 30, Hasty replied by text message that, “We’ll accept

your offer of 10 cpg.” That same day, Ellis responded, “Thanks James. I will call

soon. Tied up in a meeting.”

4 No. 82494-5-I/5

On January 31, 2018, Ellis sent Hasty a text message, which stated: “We

need to go ahead and submit.” Ellis sent another text message, which read:

“Reminder to send tax id.” That same day, Hasty sent an e-mail message that

contained Allied Fuels’ tax identification number:

Per our discussion, here’s our TIN (XX-XXXXXXX) and is intended for the use of [REG]’s initial bid submittal on the WA DES RFP in the event Allied and REG do not reach an agreement All[ied] reserves the right to withdraw that from our REG’s [sic] proposal.

REG and Allied Fuels, however, never entered into a signed written

agreement outlining all of the terms that the parties would be subject to in the

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