American Environmental, Inc.

2024 VT 59
CourtSupreme Court of Vermont
DecidedAugust 30, 2024
Docket24-AP-015
StatusPublished
Cited by1 cases

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Bluebook
American Environmental, Inc., 2024 VT 59 (Vt. 2024).

Opinion

NOTICE: This opinion is subject to motions for reargument under V.R.A.P. 40 as well as formal revision before publication in the Vermont Reports. Readers are requested to notify the Reporter of Decisions by email at: JUD.Reporter@vtcourts.gov or by mail at: Vermont Supreme Court, 109 State Street, Montpelier, Vermont 05609-0801, of any errors in order that corrections may be made before this opinion goes to press.

2024 VT 59

No. 24-AP-015

American Environmental, Inc. Supreme Court

On Appeal from v. Superior Court, Chittenden Unit, Civil Division

Burlington School District June Term, 2024

Helen M. Toor, J.

Darren R. Misenko of Misenko Construction Law, Waterbury Center, and Michael P. Sams and Herling D. Romero (On the Brief) of Kenney & Sams, P.C., Southborough, Massachusetts, for Plaintiff-Appellant.

William F. Ellis and Kevin J. Coyle of McNeil, Leddy & Sheahan, Burlington, for Defendant-Appellee.

PRESENT: Reiber, C.J., Eaton, Carroll and Waples, JJ., and Johnson, J. (Ret.), Specially Assigned

¶ 1. WAPLES, J. This case tasks us with determining whether the trial court properly

granted summary judgment to defendant Burlington School District after determining that plaintiff

American Environmental, Inc.’s claim was moot. Because we elect to take judicial notice of the

completion of the demolition work undergirding the bidding process at issue in this case, we

dismiss this appeal as moot.

¶ 2. The following facts are derived from the trial court’s findings in its order granting

summary judgment to the District. Burlington High School was closed in September 2020 after

various toxic substances were detected in several of its facilities. Students were temporarily relocated to a renovated building downtown while the contaminated high school building was

demolished, the soil remediated, and a new building constructed in its place. In September 2022,

the Burlington School District sent a Request for Qualifications outlining the first phase of the

project to fifteen contractors, including plaintiff, and the ultimate winner of the disputed contract,

EnviroVantage. Section 559 of Title 16 governs the procedure for soliciting bids for a public

project where, as here, the cost is expected to surpass $500,000. The establishment of

prequalification requirements is described as such:

(1) The State Board shall establish, in consultation with the Commissioner of Buildings and General Services and with other knowledgeable sources, general rules for the prequalification of bidders on such a contract. The Department of Buildings and General Services, upon notice by the Secretary, shall provide to school boards undergoing construction projects suggestions and recommendations on bidders qualified to provide construction services. (2) At least 60 days prior to the proposed bid opening on any construction contract to be awarded by a school board that exceeds $500,000.00, the school board shall publicly advertise for contractors interested in bidding on the project. The advertisement shall indicate that the school board has established prequalification criteria that a contractor must meet and shall invite any interested contractor to apply to the school board for prequalification. All interested contractors shall submit their qualifications to the school board, which shall determine a list of eligible prospective bidders based on the previously established criteria. At least 30 days prior to the proposed bid opening, the school board shall give written notice of the board's determination to each contractor that submitted qualifications. The school board shall consider all bids submitted by prequalified bidders meeting the deadline.

16 V.S.A. § 559(b).* The statute directs that the contract shall be awarded “to the lowest

responsible bid conforming to specifications.” Id. § 559(c)(2). It also provides that a “board shall

have the right to reject any bid found not to be responsible or conforming to specifications or to

* The Legislature recently amended 16 V.S.A. § 559(b), increasing the cost threshold of what constitutes a “[h]igh-cost construction contract” from $500,000 to $2,000,000. The language above reflects the version of the statute in effect during the chain of events germane to this appeal. 2 reject all bids.” Id. Section 559(e) specifies that “[a]ny contract entered into or purchase made in

violation of the provisions of this section shall be void.”

¶ 3. The District provided the contractors with eleven prequalification criteria and noted

that it “reserve[d] the right to reject any and all submitted Pre-Qualifications, to readvertise, and

to waive any and/or all informalities.” Five of the fifteen contractors responded, including plaintiff

and EnviroVantage. As relevant here, the following was included among the prequalification

criteria:

1. Experience in successfully completing hazardous materials abatement and demolition projects ranging from buildings 75k - 300k SF in size and projects ranging from $5 to $20 million in cost.

...

9. The contractor has no previous citations for noncompliance with federal or state regulations pertaining to worker protection, removal, transport, or disposal related to PCBs or other hazardous materials.

In order to be prequalified to bid, contractors were required to submit documentation with proof

of meeting the above requirements and to provide “five (5) sample project examples from the past

three years demonstrating compliance with the qualification criteria.” On October 6, 2022, the

School Board voted to approve those five contractors as prequalified and entitled to bid on the

project. Bidding instructions were issued in early November with the caveat that the District

“reserve[d] the right to reject any and all Bids (sic), to waive any and all informalities not involving

price, time or changes in the work.” Of the five bids submitted, EnviroVantage’s was the lowest

at $11,439,895 and plaintiff’s was the second lowest at $11,711,000. The School Board

subsequently awarded the contract to EnviroVantage by a unanimous vote.

¶ 4. Plaintiff submitted a formal bid protest on December 22, claiming that

EnviroVantage was not a responsible or qualified bidder and requesting that the contract be

awarded to plaintiff. Plaintiff additionally filed a Vermont Rule of Civil Procedure 75 complaint

on January 6 and petitioned the trial court for a preliminary injunction. In denying the requested

3 preliminary injunction, the trial court considered the likelihood of plaintiff’s success on the merits,

determining that the claim may or may not be untimely, or barred by laches or a lack of standing.

In balancing the likelihood of harm and interests of the public, the court determined that granting

the injunction would cause the District to be liable for additional costs of around $700,000 a month,

and that the construction delay would not be in the best interests of the public. In coming to its

conclusion, the court succinctly noted, “the interest in enforcing the statutory bidding process is

heavily outweighed by the financial impacts of any delay upon the District and taxpayers.”

¶ 5. The parties then each moved for summary judgment, with plaintiff arguing that,

had the bidding criteria been adhered to, the contract should have been awarded to it, and the

District arguing that the case was moot because the project was substantially complete. Plaintiff

did not respond to the District’s argument that the case was moot.

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2024 VT 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-environmental-inc-vt-2024.