Checie v. Cleveland

31 Ohio Law. Abs. 1, 1939 Ohio Misc. LEXIS 844
CourtOhio Court of Appeals
DecidedNovember 20, 1939
DocketNo. 17429
StatusPublished

This text of 31 Ohio Law. Abs. 1 (Checie v. Cleveland) 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
Checie v. Cleveland, 31 Ohio Law. Abs. 1, 1939 Ohio Misc. LEXIS 844 (Ohio Ct. App. 1939).

Opinions

[2]*2OPINION

By MORGAN, J.

This is an action begun in the Common Pleas Court on March 31, 1939, in which the plaintiff, as a taxpayer, asks that a contract between the City of Cleveland and M. H. Rhodes Inc., defendants herein, for delivering and installing three thousand manual parking meters on a rental arrangement with an option to purchase by the City, be declared void and for an injunction restraining the parties from proceeding with the contract.

Plaintiff bases his action on allegations that the law of Ohio and the City Ordinances as to competitive bidding were not complied with; that the samples accompanying the bid of M. H. Rhodes Inc., were never tested, and that those which were tested failed to meet the tests in important particulars, and that both the original and substituted samples deviated materially from the specifications; also that the defendants were guilty of conspiracy and of fraud.

On June 20, 1938, the City Council of Cleveland passed an ordinance authorizing the Director of Public Safety to advertise for bids for three thousand (3000) parking meters of the manual type. This ordinance was amended on September 21, 1938, by authorizing competitive bids for both the manually operated and the automatic parking meters, reserving the right to the Board of Control, after the receipt of the bids, to decide what kind would be best adapted to the requirements of the city.

The City Charter of Cleveland required that advertising for competitive bids should be published once a week for two (2) consecutive weeks, in the City Record. In this case, there were four (4) weekly insertions of the advertisement for bids in the City Record the first insertion being on September 28, 1938, and the last on October 19th, 1938. Detailed specifications were prepared by the City which were modified on October 8th and on October 15th, 1938.

The bids were opened on October 27, 1938, and disclosed that six (6) bids were received for furnishing manual and four for furnishing automatic meters. The low bidder was the defendant, M. H. Rhodes Inc., on both the manual and the automatic type meters, whose bid was $19.95 for each manual meter and $33.60 for each automatic meter, to be furnished by the company and which are known in the trade as the “Mark Time” meter. The next lowest bid on the manual type meter was that of the United States Parking Meter Company at the price of $29.75 per meter, and the next lowest bid on the automatic meter was that of the Dual Parking Meter Company at $43.30 per meter.

The specifications prepared by the City required that each bidder “must submit with his proposal and as a part thereof, three (3) parking meters of the exact kind he proposes to furnish.” The various bidders, including the defendant, M. H. Rhodes Inc., accompanied their bids with samples, the defendant submitting three (3) manual and three (3) automatic sample meters or six (6) samples in all.

The specifications further provided that the city would submit the samples furnished to a laboratory test, and that the test should first be made on the meters submitted by the lowest bidder conforming to the specifications.

The city selected The Pittsburg Testing Laboratory to make the tests and mailed by parcel post the six (6) sample meters submitted by the defendant, M. H. Rhodes Inc., to the laboratory at Pittsburg.

The sample meters were packed and shipped to Pittsburg by an employee of the city in charge of the store room at the City Hall. He packed the sample meters in two packages, one of [3]*3which contained two automatic meters and the other package contained one automatic meter and the three manual meters. He testified that the packages were carefully packed and. mailed by parcel post to the laboratory.

The laboratory reported that the two automatic meters were damaged in shipment and that “as far as we could note from visual examination, all of the other four meters seemed unaffected.”

It is a reasonable conclusion that the two automatic meters damaged ¡were in one of the packages while no damage was observed to the three manual meters, and one automatic meter in the other package.

Nevertheless, the laboratory recommended that all new samples be substituted. As a result, Mr. Strasser, representing the defendant, M. H. Rhodes Inc., delivered in person six (6) samples, three manual and three automatic meters to the Pittsburg Testing Laboratory and these meters, and not the original meters were tested.

The laboratory submitted its report to the City on December 22, 1938. The report found that:

“The automatic meter as submitted did not meet the requirements of the specifications.”

As to the manual type meter, the report concluded:

“The manual meter, while deviating from the specifications in several respects, meets our interpretation of the intent of the specifications in all essential characteristics.”

This statement is somewhat ambiguous, as it cannot be contended that a meter which deviates from the specifications in several respects can be said strictly to comply with the specifications. The fair interpretation of this statement seems to be that, in the opinion of the testing laboratory, either the deviations from the specifications we re slight and negligible or what is more likely, the provisions of the specifications deviated from were of such little importance that deviations from them might well be ignored.

On February 8, 1939, Mr. Eliot Ness, Director of Public Safety, in a letter to the Board of Control of the City of Cleveland, reported that the manual type meter of the defendant, M. H. Rhodes Inc., was the only meter which had passed the test set forth in the specifications and was the low bid, and the Director recommended its acceptance by the city. This letter was presented to the Board of Control and on February 8, 1939, the Board passed two resolutions; the first expressed the findings of the Board that “the kind of meter which is best adapted to the requirements of the City of Cleveland is the parking meter requiring manual movement in order effectually to start its operation.” The second resolution accepted the bid of the defendant, M. H. Rhodes Inc., for manual parking meters.

Later, on the 13th day of April, 1939, a written contract was entered into between the City of Cleveland and defendant, M. H. Rhodes Inc., by which the latter company agreed to furnish manual parking meters to the city, .

“in accordance with the attached specifications and copy of original proposal of October 27, 1938, and the supplemental letter of the said M. H. Rhodes Inc., dated February 6, 1939, all of which are attached hereto and made a part of this contract.” :

The letter of February 6, 1939, which was made a part of the contract, was mailed by M. H. Rhodes Inc., to Mr. C. B. Patterson, City Purchasing Agent, and stated that it confirmed the statement made orally to the city by their attorney “that if they should be awarded the contract they would make certain slight changes in the operation of the manual mark time meter selected by the city.” The letter named three such changes to which we shall later refer.

The case was tried in the Common Pleas Court before Judge Silbert who [4]*4granted the injunction and gave judgment for the plaintiff.' He stated in his opinion that he found in this case “absolutely no proof of fraud and collusion.” We agree with him.

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Bluebook (online)
31 Ohio Law. Abs. 1, 1939 Ohio Misc. LEXIS 844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/checie-v-cleveland-ohioctapp-1939.