Brewer-Garrett Co. v. Metrohealth Sys., Unpublished Decision (10-5-2006)

2006 Ohio 5244
CourtOhio Court of Appeals
DecidedOctober 5, 2006
DocketNo. 87365.
StatusUnpublished
Cited by6 cases

This text of 2006 Ohio 5244 (Brewer-Garrett Co. v. Metrohealth Sys., Unpublished Decision (10-5-2006)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brewer-Garrett Co. v. Metrohealth Sys., Unpublished Decision (10-5-2006), 2006 Ohio 5244 (Ohio Ct. App. 2006).

Opinion

JOURNAL ENTRY AND OPINION
{¶ 1} This is an appeal from rulings of the common pleas court in a civil action brought by appellants, The Brewer-Garrett Company ("Brewer-Garrett") and its vice president Jeffery Zellers ("Zellers"), against appellees/cross-appellants, MetroHealth Systems ("MetroHealth"), et al. The underlying suit challenged MetroHealth's process in contracting a vendor to renovate a public health facility. Upon review of the record and the arguments, and for the reasons set forth below, we affirm in part, and dismiss in part.

{¶ 2} MetroHealth is a hospital owned by the state and county. In May 2004, MetroHealth acquired the Deaconess hospital facility. MetroHealth wished to renovate the facility, including its power plant. In renovating the power plant, MetroHealth wanted to employ energy conservation measures to decrease energy costs. MetroHealth needed to contract with a vendor who could implement these renovations within a specified budget. To that end, MetroHealth decided to seek proposals from contracting vendors for the project, pursuant to R.C. 307.041. By seeking proposals pursuant to R.C. 307.041, MetroHealth elected not to accept bids, pursuant to the R.C. 307.86 competitive bidding process.

{¶ 3} Between May and June 2004, MetroHealth initiated the proposal process of R.C. 307.041 by placing advertisements for the renovation project in two issues of The Plain Dealer and then issuing formal requests for proposals ("RFP"). MetroHealth received proposals from two potential vendors: Brewer-Garrett and Reliance Mechanical, L.L.C. ("Reliance"). On June 30, 2004, MetroHealth's board of trustees authorized negotiations with Reliance, pending approval by the Cuyahoga County Commissioners. Brewer-Garrett took issue with the board's decision, and this civil action ensued.

{¶ 4} On July 6, 2004, appellants, Brewer-Garrett and Zellers, filed a complaint seeking declaratory judgment, injunctive relief, mandamus, attorney fees and costs. Hours before filing the complaint, appellants faxed a letter to the Cuyahoga County Prosecutor's office asking the prosecutor to also take action against MetroHealth on behalf of the taxpayers. The prosecutor's office refused, asserting that notice of only a few hours was an insufficient amount of time to properly investigate the matter. Appellants therefore filed suit on behalf of the state as taxpayers, pursuant to R.C. 309.13.

{¶ 5} On July 7, 2004, the trial court issued a temporary restraining order ("TRO") enjoining MetroHealth from entering into or executing any form of contract with Reliance. This TRO was effective until July 12, 2004, at which time a hearing was held pursuant to appellants' motion for preliminary injunction. On July 21, 2004, the trial court issued a judgment entry granting the preliminary injunction.

{¶ 6} MetroHealth responded by filing a motion to set bond. MetroHealth's board also took collateral measures and, on July 28, 2004, rescinded its authorization to contract with Reliance pursuant to the R.C. 307.041 process. The board then rejected all proposals and terminated the R.C. 307.041 proposal process. MetroHealth thereafter initiated a competitive bidding process, pursuant to R.C. 307.86.

{¶ 7} On November 1, 2004, the trial court issued a journal entry granting in part appellees' motion for summary judgment, holding that neither Brewer-Garrett nor Zellers were valid taxpayers permitted to file public suit pursuant to R.C. 309.13. The trial court thereby dismissed any claims for attorney fees or costs. The trial court also granted appellees' motion to set bond, pursuant to Civ.R. 65, and on November 16, 2004, the $267,000 bond was posted.

{¶ 8} On December 28, 2004, the trial court issued a judgment entry that proved fatal to appellants' complaint wherein the trial court denied a motion by appellants for leave to amend their complaint. It also denied their prior motion for summary judgment holding that it did not have the power to order the county to enter into a contract with Brewer-Garrett. Accordingly, the trial court dismissed appellants' claim for mandamus, leaving only the claims for declaratory judgment and injunctive relief.

{¶ 9} On February 18, 2005, appellees filed a motion for summary judgment on the remaining counts arguing that they were now moot since the R.C. 307.041 proposal process at issue had been terminated. On October 28, 2005, the trial court agreed that the remaining claims were moot and granted appellees' motion for summary judgment, dismissing the balance of the complaint. This appeal followed with appellants offering two assignments of error and appellees/cross-appellants offering four assignments of error.1

APPELLANTS' APPEAL
{¶ 10} The assignments of error presented by appellants challenge the rulings of the December 28, 2004 journal entry, which denied their motion for leave to amend their complaint and rejected their request for mandamus:

{¶ 11} "Plaintiff's motion for leave to file first amended complaint to add new party defendants, filed 10/20/04, is denied. Plaintiff's motion for summary judgment, filed 8/4/04, is denied. * * * For the energy conservation program to renovate the Deaconess Facility power plant MetroHealth chose to request proposals under O.R.C. 307.041 and not to engage in competitive bidding under O.R.C. 307.86. O.R.C. 307.041 reads `upon receiving the proposals, the county shall analyze them and select the proposal or proposals most likely to result in the greatest energy savings considering the cost of the project and the county's ability to pay for the improvements with current revenues or by financing the improvements.' Additionally, MetroHealth's request for proposals issued on June 9, 2004, reads, `MetroHealth reserves the right to reject any and all proposals.' Therefore, pursuant to O.R.C. section 307.041(C)(2) only the Cuyahoga County Commissioners can select a proposal. The court cannot at this time order the county to enter into a contract with Brewer-Garrett. Hence, the court denies plaintiff's request for a Writ of Mandamus. * * *"

{¶ 12} Appellants also argue that the trial court erred in its November 1, 2004 judgment entry, which found that they are unable to bring a public suit as taxpayers pursuant to R.C.309.13:

{¶ 13} "* * * The court finds plaintiff's attempt to bring this action as a Cuyahoga county taxpayer is without merit. O.R.C. 309.13 reads `if the prosecuting attorney fails, upon written request of a taxpayer of the county, to make the application or institute the civil action contemplated * * * the taxpayer may make such application or institute such civil action in the name of the state.' Plaintiff faxed a letter to William Mason, the Cuyahoga County Prosecutor, on the afternoon of July 6, 2004, requesting he take action regarding this captioned case.

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Bluebook (online)
2006 Ohio 5244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brewer-garrett-co-v-metrohealth-sys-unpublished-decision-10-5-2006-ohioctapp-2006.