Communications-Pacific, Inc. v. City & County of Honolulu

221 P.3d 505, 121 Haw. 527, 2009 Haw. App. LEXIS 859
CourtHawaii Intermediate Court of Appeals
DecidedNovember 30, 2009
Docket28010
StatusPublished
Cited by2 cases

This text of 221 P.3d 505 (Communications-Pacific, Inc. v. City & County of Honolulu) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Communications-Pacific, Inc. v. City & County of Honolulu, 221 P.3d 505, 121 Haw. 527, 2009 Haw. App. LEXIS 859 (hawapp 2009).

Opinion

Opinion of the Court by

FUJISE, J.

Plaintiff-Appellant Communications-Pacific, Inc. (Comm-Pae) appeals from the May 10, 2006 final judgment of the Circuit Court of the First Circuit (circuit court) 1 in favor of Defendants-Appellees City and County of Honolulu, Mary Patricia Waterhouse, Director of the Department of Budget and Fiscal Services and Chief Procurement Officer, in her official capacity, and Toru Hamayasu (Hamayasu), Chief Planner, Transportation Planning Division, Department of Transportation Services and Acting Deputy Director of the Department of Transportation Services, in his official capacity (collectively, City). We affirm.

I.

On April 14, 2005, the City issued a “Notice to Consultants and Request for Professional Services” (RPS), seeking professional services to conduct an alternative analysis and prepare a draft environmental impact statement “to support the selection of a locally preferred high capacity transportation alternative for Oahu.”

On May 16, 2005, Parsons Brinckerhoff Quade & Douglas, Inc. (Parsons) and Earth-Tech (ET) submitted letters of interest and statements of qualification in response to the City’s RPS. Parsons’s submission identified Comm-Pae as one of its sub-consultants for public involvement and further described Comm-Pac’s Vice-President, Cindy McMillan, as the “Public Involvement Lead.” A committee designated by the City evaluated the submissions from Parsons and ET and deteimined that Parsons was the first-ranked competitor.

On August 26, 2005, the City and Parsons executed an “Agreement for Professional Services.” According to Comm-Pac:

During the course of the negotiations, [the City] directed or required Parsons to use a new sub-consultant on its team, Community Planning and Engineering, Inc. (“CPE”). The Contract stated that CPE would perform “Public Involvement” work (“Public Involvement” work Parsons had already designated in its submission for [Comm-Pac] and other team sub-consultants). The Contract further showed that CPE would receive $860,000 or nearly 10% of the total awarded work. By comparison, [Comm-Pac], the company Parsons had previously presented to the Selection Committee as Parsons’[s] “Public Involvement Task Lead,” would receive work valued at $25,000 or less than 1% of the awarded work.
CPE was not a sub-consultant on either of the teams Parsons and ET originally foimed and submitted to [the City] for evaluation on May 16, 2005. The Selection Committee had no opportunity to review any information about CPE prior to the award of the Contract to Parsons. Accordingly, the Selection Committee had no opportunity to evaluate or consider CPE in its rankings of Parsons, ET or any of their listed sub-consultants according to the se *529 lection criteria required under Haw. Rev. Stat. § 103D-304(f), prior to the award of the Contract to Parsons.
On or about October 27, 2005, during a public hearing before the City Council Transportation Committee, Defendant Ha-mayasu acknowledged that, during negotiations, he caused Parsons to add CPE as a sub-consultant to the Contract. According to Mr. Hamayasu, CPE was added because he identified a need for CPE when he was negotiating the contract’s “scope of work” with Parsons.

On November 23, 2005, Comm-Pac filed a petition for declaratory ruling with the Procurement Policy Board, Department of Accounting and General Services, as to the application of Hawaii Revised Statutes (HRS) § 103D-304 and Hawaii Administrative Rules (HAR) § 3-122-63(a). The City objected to the petition. The State Comptroller declined consideration of the petition, claiming a lack of jurisdiction on behalf of himself and the Procurement Policy Board. 2 Whether Comm-Pac pursued any other administrative remedies is not reflected in the record.

On December 20, 2005, Comm-Pac filed a complaint against the City, seeking (1) a declaratory judgment that the City violated the Procurement Code (HRS Chapter 103D) when the City added CPE as Parsons’s sub-consultant for the City’s transit project after evaluation of prospective service providers had been completed (count I), and (2) $362,000.00 in damages as a remedy for the City’s alleged tortious interference with Comm-Pac’s prospective business advantage (count II). On February 9, 2006, the City filed a motion to dismiss Comm-Pae’s complaint. On February 14, 2006, Comm-Pac filed a motion for partial summary judgment as to count I.

On April 13, 2006, after hearing arguments on both motions on March 29, 2006, the circuit court entered an order granting the City’s motion to dismiss and denying Comm-Pae’s motion for partial summary judgment (April 13, 2006 Order). On May 10, 2006, the circuit court entered final judgment in favor of the City and against Comm-Pac.

On May 19, 2006, the City filed a motion for fees and costs. On June 27, 2006, the circuit court dismissed the City’s motion for fees and costs and amended its April 13,2006 *530 Order by clarifying that it was dismissing both Comm-Pae’s complaint and Comm-Pac’s motion for partial summary judgment (Amended Order). Specifically, the circuit court adjudged and ordered as follows:

(1) HRS § 103D-704 provides for exclusive remedies with regard to aggrieved persons in connection with the solicitation or award of a contract and has broad application as a part of the Procurement Code (HRS Chapter 103D).
(2) The Hawaii Supreme Court in the cases of CARL Corporation v. Dept. of Education, 85 Hawai'i 431, 946 P.2d 1 (1997) and Nihi Lewa, Inc. v. Department Of Budget And Fiscal Servs., 103 Hawai'i 163, 80 P.3d 984 (2003) has made it absolutely clear that it wants to construe the Procurement Code such that the governmental contracting bodies are able to award contracts and end litigation contesting such awards, consistent with the terms of said Procurement Code.
(3) It is inconsistent therefore to allow subcontractors or sub-consultants to bring legal actions for judicial review outside of the Procurement Code procedures for matters involving their subcontracts pursuant to the solicitation or award of government prime contracts.
(4) Claims of subcontractors, or subcon-sultants can be brought under the Procurement Code by the contractor that received the contract and for whom they were sub-consultants or subcontractors.
(5) Therefore, this Court grants the [City’s] Motion to Dismiss [Comm-Pae’s] Complaint with prejudice and dismisses [Comm-Pac’s] Motion for Summary Judgment.

Comm-Pac filed its notice of appeal on June 28, 2006.

II.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alii Security Systems, Inc. v. Professional Security Consultants
383 P.3d 104 (Hawaii Intermediate Court of Appeals, 2016)
Koga Engineering & Construction, Inc. v. State
222 P.3d 979 (Hawaii Supreme Court, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
221 P.3d 505, 121 Haw. 527, 2009 Haw. App. LEXIS 859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/communications-pacific-inc-v-city-county-of-honolulu-hawapp-2009.