Curtis Ambulance of Florida, Inc. v. Board of County Commissioners of the County of Shawnee, Kansas, and Medevac Midamerica, Inc.

811 F.2d 1371, 1987 U.S. App. LEXIS 2249
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 18, 1987
Docket84-1892
StatusPublished
Cited by104 cases

This text of 811 F.2d 1371 (Curtis Ambulance of Florida, Inc. v. Board of County Commissioners of the County of Shawnee, Kansas, and Medevac Midamerica, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Curtis Ambulance of Florida, Inc. v. Board of County Commissioners of the County of Shawnee, Kansas, and Medevac Midamerica, Inc., 811 F.2d 1371, 1987 U.S. App. LEXIS 2249 (10th Cir. 1987).

Opinion

STEPHEN H. ANDERSON, Circuit Judge.

Plaintiff/appellant Curtis Ambulance of Florida, Inc. (“Curtis”) was the low but unsuccessful bidder for a county contract to provide residents of Shawnee County, Kansas with ambulance services. When defendant/appellee Board of County Commissioners of Shawnee County (“Board”) awarded the ambulance contract to a higher bidder, defendant/appellee Medevac Midamerica, Inc. (“Medevac”), Curtis filed this action in federal district court in Kansas, claiming that the award of the contract to Medevac constituted a violation of its civil rights pursuant to 42 U.S.C. § 1983, a breach of contract, and a violation of the Kansas Open Meetings Law, Kan.Stat.Ann. §§ 75-4317 to -4320a (1984 & Supp. 1985). The district court dismissed the action upon motions filed by the Board and Medevac. Curtis appeals from that judgment of dismissal. We affirm.

BACKGROUND

On July 1, 1983, the Board issued a “Request for Quotations” (“bid solicitation”) from various ambulance companies to replace the outgoing ambulance service. The bid solicitation included a detailed set of bid specifications and set forth a closing date, a pre-bid meeting, and an invitation to contact certain county officials “prior to or subsequent to the pre-bid meeting” for additional information. R.Vol. II at 410.

The bid specifications were divided into four categories of service: combined emergency and non-emergency service; emergency service only; pre-scheduled transfer and non-emergency service only; and an alternate combined emergency and non-emergency service program, in which the bidder prescribed the model of service to be provided. In addition, the specifications contained maximum rates, bidder qualifications and requirements, and provided a tax subsidy of $455,000.00 for the successful bidder. No language in the specifications required the Board to award the contract to the lowest bidder. In fact, the only language concerning the Board’s evaluation of bids stated:

13. Rejection of Bids
The county reserves the right to reject any and all bids and to waive any informalities in bidding.

R.Vol. II at 428.

Four companies, including Curtis and Medevac, submitted bids on the ambulance *1374 contract. Curtis submitted its bid on the first option, combined emergency and non-emergency service. Medevac submitted its bid on option four, the alternate combined service. The submitted bids were opened at a public meeting held at 2:00 p.m., July 28, 1983, at the Shawnee County Courthouse.

After the bids were opened, a bid review committee appointed by the Board to review the bids determined that Medevac was the “best” bid. The Board received the written recommendation of the bid review committee at a Board meeting on August 1, 1983. The committee’s recommendation made no findings but merely stated that the Medevac bid was the “best” bid and should be accepted. R.Vol. I at 24.

At the August 1 meeting, a member of the Board made a motion to accept Medevac’s bid. Before voting on the motion, the Board allowed Medevac representatives to appear before the Board to clarify and explain their company’s bid. No representatives of Curtis or the other bidders were invited to attend the meeting. After Medevac representatives appeared, the Board, by a two to one vote, awarded the contract to Medevac.

On August 25, 1983, the Board and Medevac executed a contract for the provision by Medevac of ambulance services to Shawnee County. The contract provided, among other things, that the Board would (1) hold Medevac harmless from certain losses of revenue, (2) hold Medevac harmless from costs of litigation from third party challenges to Medevac’s right to execute the contract, (3) allow Medevac to substitute a letter of credit for surety, (4) allow for options to extend the contract, and (5) “entertain an application by Medevac for the issuance of Industrial Revenue Bonds ... for the purchase of equipment or other lawful purposes____” R.Vol. I at 41.

Upon receiving the contract, Medevac applied for the issuance of industrial revenue bonds to finance the purchase of equipment. Medevac, the Board, and other public officials initiated appropriate procedures, conducted hearings, and drafted resolutions. Ultimately, bond counsel deemed the issuance of bonds clouded as a result of threatened litigation by Curtis. Consequently, Medevac abandoned its pursuit of that financing alternative and sought instead the issuance of “no-fund” warrants. The Board filed an appropriate application with the State Board of Tax Appeals and passed Resolution No. 83-149 authorizing $444,739 to be obtained from no-fund warrants for the purchase of ambulance equipment. At the time Resolution 83-149 was passed, the Board appointed Medevac’s legal counsel as the Board’s representative to the Civic Center Board.

Curtis was notified by letter of Medevac’s selection. Following notification of the contract award to Medevac, Curtis commenced this action. The district court granted the defendants’ motion to dismiss for failure to state a claim upon which relief could be granted. Curtis Ambulance of Florida, Inc. v. Board of County Comm’rs, Civ. No. 83-4366 (D.Kan. March 9, 1984). This appeal followed.

Curtis contends that the bidding and contracting procedure employed by the Board “turned into an unmitigated sham,” R.Vol. I at 3, and that the Board’s awarding the contract to Medevac amounted to a “sweetheart contract,” R.Vol. I at 18. It claims that the Board “predetermine[d]” the award of the contract as evidenced by the Board’s “waiving” and “changing” of bid specifications and agreeing to “improperly equip and subsidize [Medevac’s] entire operation from the ground up.” R.Vol. I at 3-4. Based on these and similar allegations, Curtis asks us to find the Board’s conduct “arbitrary, capricious, and fraudulent,” Brief of Appellant at 22, in breach of Curtis’ constitutional and contractual rights, and in violation of the Kansas Open Meetings Laws.

In reviewing the grant of a motion to dismiss, we must take as true all well-pleaded allegations in the plaintiff’s complaint and we must indulge all reasonable inferences in favor of the plaintiff. Sckeuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90 (1974); *1375 Mitchell v. King, 537 F.2d 385 (10th Cir.1976); Dewell v. Lawson, 489 F.2d 877 (10th Cir.1974). “[A] complaint should not be dismissed for failure to state a claim unless it appears beyond all doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Scheuer, 416 U.S. at 236, 94 S.Ct. at 1686 (quoting Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 102, 2 L.Ed.2d 80 (1957)); Kennedy v. Meacham,

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811 F.2d 1371, 1987 U.S. App. LEXIS 2249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curtis-ambulance-of-florida-inc-v-board-of-county-commissioners-of-the-ca10-1987.