Design Dwellings, Inc. v. Town of Windham

CourtSuperior Court of Maine
DecidedMarch 13, 2017
DocketCUMap-16-15
StatusUnpublished

This text of Design Dwellings, Inc. v. Town of Windham (Design Dwellings, Inc. v. Town of Windham) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Design Dwellings, Inc. v. Town of Windham, (Me. Super. Ct. 2017).

Opinion

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STATE OF MAINE SUPERIOR COURT CU11BERLAND, ss Docket No.: AP-16-15

) DESIGN DWELLINGS, INC. d/b/a ) DDI CONSTRUCTION, ) ) Plaintiff, ) ORDER ON DEFENDANT'S ) M OTION FOR JUDGMENT ON v. ) THE PLEADINGS ) TOWN OF WINDHAM, ) ) STATE OF MAINE Cnmh.Arl~nd ,s Clerlc'1; Office Defendant. ) MAR 13 2017 I. Background RECEIVED Plaintiff Design Dwellings, Inc. d /b / a DDI Construction ("DDI") seeks

judicial review of the Town of Windham's award of a construction contract to

Party-in-Interest R.J. Grondin & Sons ("R.J. Grondin") rather than to Pla~tiff,

which was the lowest bidder. In February 2016, Windham solicited bids from

general contractors for a construction project known as "Angler's Road

Realignment" ("Project"). The Project is a Maine Department of Transportation

("MDOT") Municipal Partnership Initiative ("MPI") funded by the MDOT,

Windham, and the Portland Water District. Plaintiff submitted a bid for the

Project on or before February 25, 2016. On March 16, 2016, after request and

review of additional information from DD~ and R.J. Grondin, Windham notified

DDI that the Project would be awarded to R.J. Grondin.

DDI brought this action seeking review of Windham's decision to award the

Project to R.J. Grondin rather than DDI, which submitted the lowest bid. DDI

asserts claims for promissory estoppel and breach of contract. Windham moves

the Court for judgment on the pleadings. Plaintiff-Robert Ruesch Esq. Defendant Town of Windham­ 1 Stephen Langsdorf, Esq./Kevin Haskins, Esq. -~-------- - - - - - - - 1 ( ~ -·- - ··

IL Standard of Review

A defendant's motion for judgment on the pleadings is generally treated as

the equivalent of a motion to dismiss for failure to state a claim. MacKerron v.

MacKerron, 571 A.2d 810, 813 (Me. 1990). "[T]he court resolves a defense motion

for judgment on the pleadings by assuming that the factual allegations are true,

examining the complaint in the light most favorable to plaintiff, and ascertaining

'whether the complaint alleges the elements of a cause of action or facts entitling

the plaintif! to relief on some legal theory."' Cunningham v. Haza, 538 A.2d 265,

267 (Me. 1988) (quoting Robinson v. Washington Cnty., 529 A.2d 1357, 1359 (Me.

1987)).

III. Discussion

Plaintiff DDI has asserted claims of promissory estoppel and breach of

contract. Windham moves the Court for judgment on the pleadings arguing that

DDI has not alleged facts sufficient to meet the elements of either claim.

Windham contends that it did not make any promise or agreement with DDI and I therefore could not have broken a promise or breached an agreement.

Plaintiff asserts a claim of breach of contract. "The establishment of a contract - . requires that the parties mutually assent to be bound by all its material terms; the

assent must be manifested in the contract, either expressly or impliedly; and the

contract must be sufficiently definite to enable the court to determine its exact

meaning and fix exactly the legal liabilities of the parties." Forrest Assocs. v.

Passamaquoddy Tribe, 2000 ME 195,

DDI has also brought a claim for promissory estoppel. Maine has adopted the

definition of promissory estoppel found in the Restatement:

2 - · -- -- - ... .. -·- ·~ - - - ---- ·-···-· --­ -. A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires.

See Panasonic Communications & Sys. Co. v. State ofMaine, 1997 ME 43, ,r 17, 691

A.2d 190; RESTATEMENT (SECOND) OF CONTRACTS§ 90(1). DDI alleges that

Maine Law, the Charter of the Town of Windham, the Notice to Bidders, and special

bid documents required that Windham award the Project to the lowest bidder.

Defendant argues that none of the cited documents binds Windham in contract or

constitute a promise on Windham's behalf.

DDI cites to 23 M.R.S. § 4243, which governs the award of contracts by the

MDOT, for support. "The department has the right to reject any bids and to advertise

for new bids if, in the department's opinion, doing so is in the best interest of the

department; otherwise, the department shall award the contract to the responsible

bidder submitting the lowest bid." 23 M.R.S. § 4243. Section 4243 does not set out I I

contractual terms binding a municipality and a bidder. Rather, section 4243 sets out

the process by which the MDOT will award contracts, granting MDOT considerable

discretion to "reject any bids ... if, in the department's opinion, doing so is in the best

interest of the department." The Court does not find that section 4243 create an

enforceable promise or agreement.

DDI alleges that the terms of the Charter of the Town of Windham creates an

agreement or promise obligating Windham to bidders on contracts. According to the

section of the Charter of the Town of Windham cited by DDI: "The Town Manager

shall act as purchasing agent for all departments of the Town and provide for

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cooperative purchasing arrangements where feasible, and shall submit to

competitive bids any transaction in excess of the amount set by order of the

Council." Charter of the Town of Windham, Art III,§ 2(A) (9). Similarly to 23 M.R.S. §

4243, the language found in the Charter of the Town of Windham does not amount

to an agreement or promise. The language of the Charter merely holds that the

Town Manager will seek competitive bids for certain transactions. The language

does not require the acceptance of the lowest bid, nor does it create contractual or

equitable rights 'for those who seek to offer "competitive bids".

Finally, DDI points to the Notice to Bidders and the special bid documents as the

basis of the alleged contract and promise. The Notice to Bidders states that the

"basis of the award will be low bid." Notice to Bidders, ,r 3. The special bid

documents note that the "award of the contract, if it be awarded, shall be made ... to

the lowest responsible and qualified bidder whose proposal complies with these bid

documents." Special Provisions§ 103.02. The special provisions also state that I "[t]he Town reserves the right to reject any bid if the evidence submitted by, or the

investigation of such bidder fails to satisfy the town that such bidder is properly

qualified to carry .out the obligations of the Contract and to complete the work

contemplated therein." Special Provisions§ 102.01.

It is settled law in Maine that a solicitation for bids is neither a contract nor a

promise, but merely a request for offers. "[A]n advertisement soliciting bids is not

an offer but only a request for offers that may be accepted or rejected." Carroll F.

Look Constr. Co. v. Town ofBeals, 2002 ME 128, ,r 9, 802 A.2d 994. Plaintiff

distinguishes the facts of this case from the facts presented to the court in Carroll,

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Related

Forrest Associates v. Passamaquoddy Tribe
2000 ME 195 (Supreme Judicial Court of Maine, 2000)
Cunningham v. Haza
538 A.2d 265 (Supreme Judicial Court of Maine, 1988)
Robinson v. Washington County
529 A.2d 1357 (Supreme Judicial Court of Maine, 1987)
Town of Charleston v. School Administrative District No. 68
2002 ME 95 (Supreme Judicial Court of Maine, 2002)
Wyman v. Town of Phippsburg
2009 ME 77 (Supreme Judicial Court of Maine, 2009)
Bar Harbor Banking & Trust Co. v. Alexander
411 A.2d 74 (Supreme Judicial Court of Maine, 1980)
Carroll F. Look Construction Co. v. Town of Beals
2002 ME 128 (Supreme Judicial Court of Maine, 2002)
Rudolph v. Golick
2010 ME 106 (Supreme Judicial Court of Maine, 2010)
Robert Duffy v. Town of Berwick
2013 ME 105 (Supreme Judicial Court of Maine, 2013)
MacKerron v. MacKerron
571 A.2d 810 (Supreme Judicial Court of Maine, 1990)
Bizier v. Town of Turner
2011 ME 116 (Supreme Judicial Court of Maine, 2011)

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