Cornell Pump Co. v. City of Bellingham

98 P.3d 84
CourtCourt of Appeals of Washington
DecidedSeptember 20, 2004
Docket52346-5-I
StatusPublished
Cited by6 cases

This text of 98 P.3d 84 (Cornell Pump Co. v. City of Bellingham) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cornell Pump Co. v. City of Bellingham, 98 P.3d 84 (Wash. Ct. App. 2004).

Opinion

98 P.3d 84 (2004)
123 Wash.App. 226

CORNELL PUMP COMPANY, a Delaware corporation, Appellant,
v.
CITY OF BELLINGHAM, a political subdivision in the State of Washington; and Morris Pump, an incorporation, Respondents.

No. 52346-5-I.

Court of Appeals of Washington, Division 1.

September 20, 2004.

*85 Joseph Straus, Bullivant Houser Bailey PC, Seattle, WA, for Appellant.

James Wagner, Scott Bissel, Stafford Frey Cooper, Christopher Wright, Mark Rosencrantz, Stanislaw Ashbaugh LLP, Seattle, WA, for Respondents.

COLEMAN, J.

A trial court may require a party that wrongfully obtains a temporary restraining order to pay the costs and fees associated with dissolving the order. The purpose of this equitable rule is to discourage parties from unnecessarily seeking injunctive relief. This rule has a limited application in the public bidding context because a disappointed bidder cannot obtain any relief once the contract has been signed and cannot receive damages. Thus, in many public bidding cases, awarding attorney fees may not be appropriate. There is not, however, an absolute bar to attorney fees in the public bidding context. Rather, in applying the rule, the trial court must determine whether, under the circumstances of the particular case, attorney fees are appropriate. Here, the trial court did not abuse its discretion in awarding attorney fees because the disappointed bidder did not have a tenable basis for challenging the bid award.

FACTS

In January 2003, the City of Bellingham published an invitation for bids on sewage pumps and other equipment for an upgrade project at the Oak Street Pump Station. Before submitting its bid, Cornell Pump Company met with the City's design consultant, Parametrix, Inc., and discussed the technical requirements of the bid. Cornell submitted its bid on January 29, 2003. Two other manufacturers, Morris Pump, Inc. and Fairbanks Equipment, also submitted bids. On February 3, 2003, Parametrix gave the City a written review of the bid proposals. Parametrix determined that Morris had submitted the lowest responsive bid and recommended that the City award the bid to Morris. Parametrix determined that Cornell's bid was nonresponsive and recommended that the City reject the bid:

• Review of non-technical bid submittals:
• Bidder did not meet specified experience requirements.
*86 • Bidder did not meet warranty requirements. Provided 2 years after pump delivery rather than 2 years after substantial completion.
• Review of technical bid submittals:
• Bidder did not provide sphere passing ability for both pump sizes.
• Bidder did not provide required efficiency for specified pump performance Condition D. Provided 55% rather than specified 66%.
• Bidder did not provide a pump suitable for operating at specified pump performance Condition E (Condition E is far outside manufacturer's acceptable operating range for the submitted pump).
• Bidder provided double volute pumps for large pumps are [sic] double volute, rather than single volute as specified.
Bid rejection recommended because bidder did not meet technical requirements.

The City's Public Works Department recommended that the City Council award the sewage pump contract to Morris at its next meeting. When Cornell learned about the recommendation, it contacted Parametrix to discuss the recommendations. On February 7, 2003, Cornell submitted a formal bid protest letter to the City. In the protest, Cornell argued that its bid was lower than Morris's and that it would meet all of the technical requirements of the project. Cornell acknowledged that its bid did not meet the City's specifications, but argued that because it did not "take any exceptions" to the specifications in the bid, it would comply with the requirements in its final submittal.

At the City Council meeting on February 10, 2003, Cornell addressed the Council and asked the Council to accept its bid, again arguing that because it did not "take any exceptions" to the specifications, it would comply with all of the requirements, despite the variances in the actual bid submitted. The Council unanimously voted to award the contract to Morris. The Council notified Morris of the contract acceptance on February 12, 2003.

On February 13, 2003, Cornell filed suit in the Whatcom County Superior Court to restrain the City and Morris from signing the contract and filed a motion for an ex parte temporary restraining order (TRO). Cornell sought the TRO against both the City and Morris, without notice to either party under CR 65(b). Cornell argued that the TRO was necessary to prevent the City and Morris from executing the contract prior to the hearing. The trial court granted the TRO and set a hearing to determine whether a preliminary injunction was appropriate. After a two-day hearing, the trial court dissolved the TRO and denied Cornell's request for a preliminary injunction on February 28, 2003.

The City and Morris filed motions for attorney fees and costs incurred in responding to Cornell's TRO and request for a preliminary injunction. After a hearing, the trial court granted the motions, concluding:

The Quinn case not withstanding, the City and Morris Pump are entitled to attorney fees. Without going into an awful lot of detail, it's pretty well explained that the temporary restraining order was improvidently granted and subsequently dissolved, and the prevailing party is entitled to its costs.
One of the reasons why they have that under Rule 65 is to make certain that the party who eventually prevails will be entitled to their costs. If they — if the Quinn case were to be extended to some ridiculous end, say that there never would be any costs, then we can eliminate the need for a bond or security as is required.
So to that extent Quinn doesn't apply as far as this case is concerned, and you'll have to pay the attorneys fees for the City and for Morris. That will be the judgment or the last and bravest order of this Court.

Report of Proceedings (April 18, 2003) at 12-13. Cornell filed a timely notice of appeal.

STANDARD OF REVIEW

"The applicable equitable rule is that attorney fees may be awarded to a party who prevails in dissolving a wrongfully issued injunction or, as here, temporary restraining order. The award is discretionary[.]" *87 Confederated Tribes of Chehalis Reservation v. Johnson, 135 Wash.2d 734, 758, 958 P.2d 260 (1998) (internal citations omitted). Therefore, we review for an abuse of discretion. A trial court abuses its discretion if it bases its decision on untenable grounds. State ex rel. Carroll v. Junker, 79 Wash.2d 12, 26, 482 P.2d 775 (1971).

ANALYSIS

We first address whether the trial court abused its discretion in awarding attorney fees incurred in dissolving the TRO to the City and Morris. Under state competitive public bidding rules, the public entity must accept the lowest responsive bid. The entity must also reject any bids that are nonresponsive. RCW 43.19.1911(1);

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Cite This Page — Counsel Stack

Bluebook (online)
98 P.3d 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cornell-pump-co-v-city-of-bellingham-washctapp-2004.