Broomes v. City of East Chicago

342 N.E.2d 893, 168 Ind. App. 348, 1976 Ind. App. LEXIS 831
CourtIndiana Court of Appeals
DecidedMarch 10, 1976
Docket3-575A101
StatusPublished
Cited by5 cases

This text of 342 N.E.2d 893 (Broomes v. City of East Chicago) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broomes v. City of East Chicago, 342 N.E.2d 893, 168 Ind. App. 348, 1976 Ind. App. LEXIS 831 (Ind. Ct. App. 1976).

Opinion

Hoffman, J.

Plaintiffs-appellants Edward L. C. Broomes, Edward Edwards, Katie Mason, Ceasar Bonilla and J. Winston Harper (collectively referred to herein as taxpayers) commenced this public lawsuit to secure an injunction preventing the performance of a construction contract between defendants-appellees City of East Chicago, Indiana, and others (collectively referred to herein as the City) and Metro Construction Company (Metro), and a declaratory judgment adjudicating such contract to be illegal and void. The taxpayers’ complaint alleged that such contract had been procured through a fraud by Metro, and that Metro had failed to follow *350 applicable bidding procedures. After a consolidated hearing, the trial court refused to issue an injunction, and adjudicated the contract in issue to be valid and binding. This appeal was subsequently perfected by the taxpayers.

The first issue presented by this appeal is whether the trial court erred in holding that the taxpayers failed to exhaust their remedies relative to the awarding of this contract before commencing this public lawsuit. Our Public Lawsuits statute 1 requires that any plaintiff bringing an action within its scope must first exhaust all the administrative remedies available to him as a condition precedent to maintaining such action. See, IC 1971, 34-4-17-8 (b) (Burns Code Ed.). Additionally, IC 1971, 34-4-17-8(c) (Burns Code Ed.), provides that where a municipal corporation is required by law to hold a public hearing, preceded by public notice thereof, before commencing the construction of a public improvement, and such a hearing is actually held, a public lawsuit plaintiff shall not be entitled to raise any issue in such lawsuit which he could have, but did not raise at such hearing.

In deciding the question of the exhaustion of administrative remedies by these taxpayers, it is important to examine the exact wording of IC 1971, 34-4-17- 8(b),supra:

“Exhaustion of Administrative Remedies. As a condition precedent to bringing any public lawsuit, a plaintiff must first exhaust all the administrative remedies available to him under applicable law, including but not limited to the filing of a remonstrance where the issues raised could have been raised by such filing under applicable law; and no plaintiff may commence a public lawsuit or be named as a party therein unless one of the plaintiffs has complied with this provision.” (Emphasis supplied.)

This subsection, when read in conjunction with the definition of the word “law” contained in IC 1971, 34-4-17-1 (d) (Burns Code Ed.) clearly requires that before it will operate as a *351 bar to an action by a public lawsuit plaintiff, some statutory remedy before the municipal corporation must be in existence. This court is unaware of, and the parties have not shown the existence of, any such remedy applicable to the submission of the bidding documents required by IC 1971, 5-16-1-1, et seq., (Burns Code Ed.). Indeed, as contended by the parties in reference to another issue, the reception of bids by such a municipal body is arguably a ministerial act under IC 1971, 19-7-4-21(6) (Burns Code Ed.), notwithstanding the requirement of IC 1971, 5-16-2-1 (Burns Code Ed.), that such reception be made at an open and public meeting.

It must be concluded that no administrative remedy was available to the plaintiffs-taxpayers in the case at bar within the meaning of IC 1971, 34-4-17-8 (b), supra, and, therefore, that this action is not barred by such section. Cf: Brutus v. Wright (1975), 163 Ind. App. 366, 324 N.E.2d 165.

The taxpayers’ action is also not barred by IC 1971, 34-4-17-8 (c), supra. Such section is applicable only “[w]here as a condition precedent to the construction, financing or leasing of a public improvement the municipal corporation is required to hold a public hearing thereon preceded by public notice thereof, and hearing is held and the notice is given in accordance with applicable law ***.” In the case at bar there is no contention that the City was required to hold a public hearing on the subject of the reception of bids for the improvements.

The trial court erred in holding that these taxpayers were required to show an exhaustion of remedies in order to maintain their action.

The second issue presented by this case concerns the bidding procedures utilized by the City in awarding a contract to Metro for the construction of improvements to certain parks. In particular, the taxpayers challenge the adequacy of the financial statement submitted by Metro with its bid. The *352 trial court held that such financial statement was sufficient under the applicable statutory requirements.

The financial statement which was submitted by Metro with its bid was made, in part, on a form designated for such purpose by The State Board of Accounts of Indiana, such form being designated as “General Form No. 96-a.”

The six-page portion of such form entitled “Contractor’s Financial Statement” was left entirely blank by Metro, save for its name and address, a statement that one “Charles J. Zordani” was authorized to conduct business for Metro, and the signatures of the three partners comprising the partnership. However, the notation “see attached” was made at the top of the form, and personal balance sheets for “Lawrence and Riva Bursten” and “Solomon and Gertrude Seidel” were appended to the form.

IC 1971, 5-16-1-2, supra, which is applicable to contracts such as that at issue in the case at bar, provides, in pertinent part:

“Sworn questionnaire to accompany bids — Financial statements — Aid in determining qualifications. — Whenever the aggregate costs of any work or improvement will be five thousand dollars [$5,000] or more, for the purpose of enabling such board, commission, trustee, officer or agent to ascertain and determine which of the bidders submitting bids for the performance of any such public work is, in the judgment of such board, commission, trustee, officer or agent, the lowest and/or best bidder and to exercise intelligently the discretion hereby conferred on such board, commission, trustee, officer or agent each bidder shall be required to submit under oath with and as a part of his bid *** a financial statement: ***. The statements hereby required shall be submitted on form which shall be prescribed by the state board of accounts. *** [T]he forms so prescribed are here prescribed as the forms which shall hereafter be used by all such boards, commissions, trustees, officers and agents in obtaining the information which is required in the administration of this act [5-16-1-1 — 5-16-1-3], If the information submitted by any bidder on the forms herein prescribed is found, on *353 examination, to be unsatisfactory, the bid submitted by such bidder shall not be considered.” (Emphasis supplied.)

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Related

Cristiani v. Clark County, Indiana Solid Waste Management District
675 N.E.2d 715 (Indiana Court of Appeals, 1996)
City of East Chicago v. Broomes
468 N.E.2d 231 (Indiana Court of Appeals, 1984)
Zordani v. State
371 N.E.2d 396 (Indiana Court of Appeals, 1978)
City of Richmond v. Indiana & Michigan Electric Co.
353 N.E.2d 467 (Indiana Court of Appeals, 1976)
State v. Morand
349 N.E.2d 718 (Indiana Court of Appeals, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
342 N.E.2d 893, 168 Ind. App. 348, 1976 Ind. App. LEXIS 831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broomes-v-city-of-east-chicago-indctapp-1976.