COUCH CONST. CO., INC. v. Department of Transp.

361 So. 2d 184
CourtDistrict Court of Appeal of Florida
DecidedJune 16, 1978
DocketKK-100
StatusPublished
Cited by10 cases

This text of 361 So. 2d 184 (COUCH CONST. CO., INC. v. Department of Transp.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
COUCH CONST. CO., INC. v. Department of Transp., 361 So. 2d 184 (Fla. Ct. App. 1978).

Opinion

361 So.2d 184 (1978)

COUCH CONSTRUCTION COMPANY, INC., Petitioner,
v.
DEPARTMENT OF TRANSPORTATION, State of Florida, Respondent, and
White Construction Company, Inc., Intervenor.

No. KK-100.

District Court of Appeal of Florida, First District.

June 16, 1978.
Rehearing Denied June 26, 1978.

*185 Robert R. Feagin, III, F. Alan Cummings and John Radey of Holland & Knight, Tallahassee, for petitioner.

H. Reynolds Sampson, Tallahassee, for respondent.

John S. Rawls and Elaine N. Duggar, Tallahassee, for intervenor.

BOOTH, Judge.

This cause is before us on Petition for Review of final agency action by order dated June 2, 1978, dismissing the complaint of Couch Construction Company [Couch] for failure to state a cause of action. This case was briefed and argued with its companion case, II-314, in which a separate opinion of this Court has been filed.[1] The controversy in both cases involves the bidding for, and award of, the asphalt paving contract for the last link of I-10, known as the Flat Creek Project. In Case II-314, the specific issue was the validity of DOT's action rejecting all bids at the first, December, 1977, bidding on the contract due to failure of the apparent low bidder, Couch, to attend the mandatory pre-bid conference. The issues in this case are the qualification and responsibility of White Construction Company [White] which were challenged by Couch following White's apparent low bid at the second bidding on the contract in January of 1978.

Complaint by Couch was filed February 21, 1978, against DOT requesting proceedings under Florida Statute § 120.57 and Chapter 14-6, Rules of the Department of Transportation, for the following relief:

*186 "[T]hat Respondent [DOT] find, under section 337.16, Florida Statutes, and section 8-8 of the Standard Specifications that White Construction Company, Inc., was disqualified from submitting bids on December 21, 1977, and January 12, 1978, on the basis of its status as delinquent in the performance of Contracts held by it with Respondent; or, in the alternative, that White Construction Company, Inc., was not the lowest responsible bidder that submitted bids at the January 12, 1978, bid letting; and that Respondent immediately award the contract for the Project to Petitioner ..." (emphasis supplied)

Respondents White and DOT moved to dismiss the complaint on grounds: (1) That Couch lacked standing to challenge White's contract rights with DOT and (2) That the complaint failed to state a cause of action in that White had never been declared delinquent by DOT.

On the standing issue, the hearing officer held that Couch had standing to challenge the qualifications of other bidders, stating:

"[T]he right of a bidder for a public contract to a fair consideration of his bid and his right to an award of the contract if his is the lowest, responsible bid are matters of `substantial interest' to him, thus entitling him to a hearing pursuant to § 120.57 ..."

The foregoing holding is correct and supported by this Court's decision in Greenhut Construction Co. v. Henry A. Knott, Inc., 247 So.2d 517 (Fla. 1st DCA 1971). On the claim that White be disqualified under § 337.16,[2] the recommended order, as adopted by DOT, holds:

"[T]he statute in question, F.S. § 337.16(1), seems to clearly provide that a contractor who is delinquent on a previously awarded contract, as disclosed by an investigation by the highway engineer, is disqualified from bidding. However, the undersigned Hearing Officer considers herself bound by the Florida Supreme Court White case cited above. That case, while dealing specifically with a suspension for cause of a certificate of qualification, clearly recognizes the DOT's procedures for disqualification due to delinquency. And, its holding is that if such procedures are not complied with, the bid must be opened and given all consideration to which it is legally entitled. Applying the White case to the facts alleged in the petition herein, it is clear that the respondent White Construction Co., Inc., was not disqualified from bidding at either bid letting, and therefore the petitioner's complaint fails to state a cause of action for which relief can be granted. The harshness of the result of this dismissal is recognized by the undersigned. It would seem that if indeed a contractor were delinquent on previously awarded contracts, the failure of the DOT to properly act on such delinquency should not defeat the rights of another contractor to be awarded a bid if it is otherwise the lowest responsible bidder."

Couch's petition for review was filed May 25, 1978 and sought "review of the inaction and refusal [of DOT] to take timely final agency action with respect to petitioner's complaint of February 21, 1978." Thereafter, on June 2, 1978, DOT acted by dismissing Couch's complaint. Prior to that final agency action, however, briefs had been filed and arguments held in this Court, on May 30, 1978, in this case and the companion case. This expedited procedure was adopted by the Court in the interest of facilitating early disposition of the cases. The parties agreed to waive exceptions to *187 the recommended order of the hearing examiner in this case and no renewed petition for review has been filed which contests the merits of the agency order dismissing the complaint. Time has not expired for the filing of such renewed petition, however, we dispense with the need for it in the interest of avoiding further delay and proceed to the merits.

The recommended and the final orders correctly hold that White is not disqualified to bid, and that Couch's first alternative ground of attack on White's low January bid must fail. However, there is no ruling except by implication on Couch's second alternative ground, that White "was not the lowest responsible bidder." The DOT's implied holding, that that ground, too, was foreclosed by the Supreme Court decision in White Construction Company v. Division of Administration, 281 So.2d 194 (Fla. 1973), is erroneous.

Neither § 337.16 nor the Supreme Court's White case has eliminated the traditional competitive bidding requirement that the contract be awarded to the lowest responsible bidder. That requirement is codified in Florida Statute § 337.11. Delinquency in fact in work progress is evidence to be considered on the question of whether White was a responsible bidder to whom the contract could be awarded. The term "responsible" as used in bidding statutes such as § 337.11, has been defined as follows:[3]

"The term `responsible' ... is not limited in its meaning to financial resources and ability. What the public desires is a well-constructed work, for which a lawsuit even against a responsible defendant is a poor substitute; and authorizations of this kind are held to invest public authorities with discretionary power to pass upon the honesty and integrity of the bidder necessary to a faithful performance of the contract — upon his skill and business judgment, his experience and his facilities for carrying out the contract, his previous conduct under other contracts, and the quality of his previous work — as well as to pass upon his pecuniary ability, and when that discretion is properly exercised, the courts will not interfere." (emphasis supplied)

See also, Kelling v. Edwards, 116 Minn. 484, 134 N.W.

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361 So. 2d 184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/couch-const-co-inc-v-department-of-transp-fladistctapp-1978.