Carpet City, Inc. v. Stillwater Municipal Hospital Authority

1975 OK 75, 536 P.2d 335, 1975 Okla. LEXIS 419
CourtSupreme Court of Oklahoma
DecidedMay 20, 1975
Docket48353
StatusPublished
Cited by21 cases

This text of 1975 OK 75 (Carpet City, Inc. v. Stillwater Municipal Hospital Authority) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carpet City, Inc. v. Stillwater Municipal Hospital Authority, 1975 OK 75, 536 P.2d 335, 1975 Okla. LEXIS 419 (Okla. 1975).

Opinion

HODGES, Vice Chief Justice.

This is an Application to Assume Original Jurisdiction and Petition for Writ of Mandamus to direct the Stillwater Municipal Hospital Authority, a public trust, created under 60 O.S.1971 § 176 et seq. and its Board of Trustees to comply with the provisions of the Public Competitive Bidding Act of 1974, 61 O.S.1974 Supp. § 101 et seq., the “Act”.

The Trustees, incident to the construction of a new hospital facility, advertised and solicited bids based on architectural specifications.

After interviewing numerous carpet manufacturers and their representatives, the Trustees in late 1974, issued an advertisement for bid in three parts: (1) floor covering only; (2) installation only; (3) installation and floor covering. Eight bidders, including Carpet City, Inc. “Carpet City”, submitted bids for the carpet and/or installation. The Trust awarded the contract to Don J. Greve “Greve”.

It was decided at a Trustees meeting on March 4, 1975, to withdraw and re-solicit bids because the provisions of the Act had not been followed in awarding the bid to Greve.

Carpet City, unaware of the Boards decision, instituted an action in the District Court of Payne County, Oklahoma, on March 6, 1975, seeking to restrain the Board from signing a contract with Greve, and to have the Board directed to execute a contract with Carpet City. When Carpet City discovered the Trustees had decided to re-solicit bids, it did not prosecute its action.

At a later meeting of the Trustees on March 11, 1975, compliance with the Act, and the floor covering contract were discussed. The decision to re-solicit bids was re-affirmed.

On March 18, 1975, the Trustees again discussed the award of the carpet contract. The majority voted to reverse the actions of March 4, and of March 11, and to re-award the contract to Greve. The contract was executed on March 21, 1975, sixty days after it was first awarded.

Arguments were heard by the District Court at its disposition docket on March *337 21, 1975. The Court denied Carpet City’s request for a temporary restraining order. Another hearing was set for March 24, 1975. Carpet City was allowed to modify its Petition to request injunctive relief.

At the hearing on March 24, 1975, the following stipulations were entered as a matter of record:

1. The date of the opening bids was 7:30 p. m., January 7, 1975.
2. On January 21, 1975, the Board awarded a contract to Don Greve.
3. That the Board of Trustees relied upon a summary of bids prepared by the architects dated January 16, 1975.
4. Carpet City was the low bidder on Antron II Carpets.
5. That the architects’ summary contained no information concerning a five percent (5%) discount for payment within thirty (30) days on Carpet City’s bid.
6. The Board of Trustees voted on March 4, 1975, to reject Don Greve’s bid for failure to comply with 61 O. S.1974 Supp. § 101 et seq.
7. The Board voted on March 18, 1975, to re-award the contract to Don Greve and to waive until commencement of work the requirements of 61 O.S.1974 Supp. § 113[(B)](4).
8. That a contract was executed on March 21, 1975, subject to delivery at a later date of the bond required by 61 O.S.1974 Supp. § 113[(B)](1).
9. That the Board has not declared an emergency to exist under the provisions of 61 O.S.1974 Supp. § 130.

In addition to the stipulations, one of the respondents testified at the March 18 Trustees meeting the Trustees had voted to waive the requirement for a maintenance bond as set out in 61 O.S.1974 Supp. § 113[(B)](3).

The Respondents demurred to the proceedings in the District Court on the basis that the Act was not intended to apply to acquisitions such as floor covering. The

court overruled the demurrer, but after hearing, entered judgment denying the temporary and permanent injunction requested by Carpet City.

There are four questions presented concerning the applicability of the Act. The first is whether a contract for carpet, installation, or carpet and installation to be utilized in the construction of a hospital facility, which is a public trust, is subject to the provisions of the Act.

It is urged by respondents that the sale and installation of carpet in a public building is not covered by the Act because carpet and its installation has a life expectancy of 5 years. It is argued that to fall within the definition of construction, the items must become an integral permanent part of the structure intended to last the useful life of the structure. We do not agree, especially where the carpet and installation is a part of the specifications for tjie construction of the hospital.

It is provided in 61 O.S.1974 Supp. § 103 that all public construction contracts shall be let and awarded in accordance with the provisions of the Act.

Public construction contract is defined by 61 O.S.1974 Supp. § 102(4) as meaning:

* * * any contract, exceeding Two Thousand Five Hundred Dollars ($2,500.00) in amount, awarded by any public agency for the purpose of making any public improvements or constructing any public building or making repairs to the same.”

The Trust is covered by the Act. The statutory definition of “public agency” as promulgated by 61 O.S.1974 Supp. § 102(3) expressly includes any public trust or any public entity specifically created by the statutes of the State of Oklahoma.

The facts indicate that the carpeting is to be permanently affixed to the sub-floors in a construction project for a püblic building. It thus becomes a part of the realty. See United Benefit Life Insurance Company v. Norman Lumber Co. 484 P.2d 527 (Okla.1971).

*338 The term construction with reference to a building means to put together the materials and constituent parts used therein in their proper place and order. Scharff v. Southern Illinois Construction Co., 115 Mo.App. 157, 92 S.W. 126, 130 (1905); Olney v, Hutt, 251 Iowa 1379, 105 N.W.2d 515, 520 (1960). A hospital is more than a mere building of four walls and a roof. See Hollis v. Erwin, 237 Ark. 605, 374 S.W.2d 828, 833 (1964). Certainly where the specifications of the architect require carpet and its installation as an essential part of the construction of a public building, the bids for it are subject to the provisions of the Act.

The next problem presented is whether the Trust complied with the Act when it accepted a bid it had previously rejected. We find that it did not. To allow such an action would permit effective circumvention of the Act, and prevent free and open competitive bidding.

The Act, 61 O.S.1974 Supp. § 119, provides :

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1975 OK 75, 536 P.2d 335, 1975 Okla. LEXIS 419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carpet-city-inc-v-stillwater-municipal-hospital-authority-okla-1975.