Anderson v. Fayette County Bd. of Educ.

738 So. 2d 854, 1999 WL 378599
CourtSupreme Court of Alabama
DecidedJune 11, 1999
Docket1980194
StatusPublished
Cited by4 cases

This text of 738 So. 2d 854 (Anderson v. Fayette County Bd. of Educ.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Fayette County Bd. of Educ., 738 So. 2d 854, 1999 WL 378599 (Ala. 1999).

Opinion

738 So.2d 854 (1999)

Mark ANDERSON
v.
FAYETTE COUNTY BOARD OF EDUCATION and The Trane Company, Inc.

1980194.

Supreme Court of Alabama.

June 11, 1999.

*855 Clatus Junkin and Charles E. Harrison of Junkin & Harrison, Fayette, for appellant.

Donald B. Sweeney, Jr., Rhonda Pitts Chambers, and David P. Condon of Rives & Peterson, P.C., Birmingham, for appellees Fayette County Board of Education and Bobby Hathcock.

Walter J. Sears III and Douglas E. Eckert of Bradley, Arant, Rose & White, L.L.P., Birmingham, for appellee The Trane Company.

HOUSTON, Justice.

The plaintiff Mark Anderson appeals a summary judgment against various claims he made stemming from an alleged violation of the Alabama Competitive Bid Law by the Trane Company and the Fayette County Board of Education. We affirm.

When reviewing a summary judgment, we examine the evidence in the light most favorable to the nonmovant. Scott v. Villegas, 723 So.2d 642, 643 (Ala.1998). In this case, however, the facts are not in dispute. Therefore, the only question before us is whether the defendants, Trane and the Board, were entitled to a judgment as a matter of law. Rule 56, Ala. R. Civ. P.; Ex parte Coleman, 705 So.2d 392, 394 (Ala.1997).

In December 1995, Fayette County Superintendent of Education Bobby Hathcock and members of the Fayette County Board of Education met with representatives from Trane, a provider of air-conditioning, heating, and ventilation equipment. The purpose of the meeting was to discuss the sale of air-conditioning and heating equipment and services to Fayette County. During the meeting, Trane told the Board that other customers had obtained opinions from attorneys that indicated contracts such as the one Trane uses would not be subject to the Alabama Competitive Bid Law ("the Bid Law"), codified at Ala.Code 1975, § 41-16-20 et seq.

In February 1996, the Board entered into a contract with Trane whereby the Board would pay Trane $35,750 to perform an "energy audit." In performing this "energy audit," Trane 1) analyzed the existing consumption of energy by the Fayette County School System's facilities; 2) made detailed reports of all the findings; and, based on those findings, 3) made recommendations as to what actions, including the installation of new equipment, could be taken to reduce, or make more efficient, the energy consumed. Included in the "energy audit" agreement was the understanding that if the Board entered into the "larger agreement" with Trane described below, then the $35,750 would be rolled into the total cost, which would then be financed; otherwise, the Board would be immediately liable to Trane for the full $35,750.

In June 1996, the Board decided to enter into that "larger agreement," known as a "Performance Agreement for Comfort from Trane" ("PACT"). The PACT provided, in pertinent part:

"The parties acknowledge and agree that the essence of this Agreement is to procure the professional services of Trane to design and, as a necessary component, install systems and equipment to achieve specified operational and energy savings. Trane's professional services shall include, without limitation, the following: survey of all specified schools for HVAC equipment, lighting, controls; prepare computer models of the schools based on the buildings' current operation and their respective operation subsequent to the retrofit; consultation with Alabama [P]ower [C]ompany to seek reduced utility rates; consult with architect for design approval; consult with Customer's facilities manager, consultation with mechanical contractor; prepare engineered *856 drawings for installment of controls, and HVAC equipment; monitoring of all relevant utility bills for the Term and such applicable Renewal Option exercised by Customer; weekly visits to Customer to review building automation system event logs for each system; semi-annual visits to the school to check calibration and proper operation; semi-annual visits to the school to monitor HVAC equipment; preparation and presentation of annual reports to Customer on the effect of energy conservation measures; and monthly meetings with Customer's facilities manager to discuss operations of the buildings over the Term and such applicable Renewal Option exercised by Customer.
"No later than November 26, 1996 (`Substantial Completion'), Trane shall have designed and performed such of the foregoing professional services and work as appropriate to substantially complete installation of the Equipment and such other work as Trane deems appropriate to achieve the Savings guaranteed Customer (hereinafter, collectively, the `Work') as defined in this Agreement. Trane's obligation hereunder is limited to the Work as defined herein. Excluded from the Work are any modifications or alternations[alterations] to the Premises (not expressly included within the Work as defined) that may be required by operation of the Americans With Disabilities Act or any other law or building code(s)."

In accordance with the PACT, the Board entered into a Maintenance Agreement with Trane on August 8, 1996. Pursuant to this agreement, Trane would provide monitoring and monthly bill analysis, for approximately $20,880 per year. Both the PACT and the Maintenance Agreement were for a 3-year term, renewable for up to 10 years.

Anderson, a taxpayer in Fayette County, filed this action in the Fayette Circuit Court, against Trane and the Board, alleging that the contracts between Trane and the Board violated the Bid Law. Anderson requested not only injunctive relief, but also damages based on claims of fraud, misrepresentation, and conspiracy. The trial court entered a summary judgment for the defendants, basing it on a conclusion that the Board did not abuse its discretion in determining that the contracts with Trane were not subject to the Bid Law. While we affirm the summary judgment, we hold that "abuse of discretion" is not the appropriate standard for determining whether the contract violates the Bid Law.

Both Trane and the Board argue that the Board did not abuse its discretion in not letting out for bid the contracts it eventually signed with Trane. They argue that an "abuse-of-discretion" standard is the only appropriate standard to be used when reviewing any decision of the Board concerning the Bid Law. In support of this argument, Trane and the Board cite several cases, including Ericsson Ge Mobile Communications, Inc. v. Motorola Communications & Elec., Inc., 657 So.2d 857 (Ala.1995); Crest Constr. Corp. v. Shelby County Bd. of Educ., 612 So.2d 425 (Ala. 1992); and International Telecomm. Sys. v. State, 359 So.2d 364 (Ala.1978).

However, those cases refer only to the Board's discretion in awarding a contract that has already been let out for bid. According to the Bid Law, the Board clearly has the discretion to determine the "lowest responsible bidder." See Ala.Code 1975, § 41-16-20. This does not mean that the Board's decision that a contract meets one of the exceptions found in § 41-16-51 will be given some presumption of correctness and thus will be reviewed under an abuse-of-discretion standard.

The only case mentioned by the defendants wherein this Court has used an abuse-of-discretion standard when reviewing a Board's determination that a contract fits an exception to the Bid Law is Union Springs Tel. Co. v. Rowell, 623 So.2d 732 (Ala.1993). In that case, the Union Springs Telephone Company ("USTC") sued the Alabama Department of Finance, seeking to enjoin the Finance Department *857

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Bluebook (online)
738 So. 2d 854, 1999 WL 378599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-fayette-county-bd-of-educ-ala-1999.