Duvergee, Inc. v. Government of the Virgin Islands

22 V.I. 56, 1986 V.I. LEXIS 18
CourtSupreme Court of The Virgin Islands
DecidedJune 13, 1986
DocketCivil No. 28/1986
StatusPublished
Cited by4 cases

This text of 22 V.I. 56 (Duvergee, Inc. v. Government of the Virgin Islands) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duvergee, Inc. v. Government of the Virgin Islands, 22 V.I. 56, 1986 V.I. LEXIS 18 (virginislands 1986).

Opinion

MEMORANDUM OPINION

I. INTRODUCTION

After an initial denial of plaintiff’s motion for a Temporary Restraining Order, a Permanent Injunction was issued herein in favor of plaintiff as the lowest effective bidder to supply meals for the Commission on Aging. Subsequently, motions to intervene as [59]*59defendants were filed by Marriott In Flite Services, Inc. (Marriott) and Hnghsons, Ltd. (Hughsons). The motions to intervene were granted and the intervenors filed motions to dismiss for lack of subject matter jurisdiction. Thereafter, defendant Government of the Virgin Islands (Government) also filed a similar motion to dismiss, after having filed its Notice of Appeal.

This matter is before the court on these motions to dismiss. Specifically, the movants contend that the value of the prospective contracts exceed the $200,000 jurisdictional limitation of this court. In opposition, plaintiff contends that the issue is not one of contract but one of bidding procedure, subject to the court’s equitable jurisdiction, and that even if a contract was in issue, it is divisible, thereby falling within the $200,000 civil jurisdiction of the Territorial Court.

After presentation of testimony and arguments of counsel, the motions were taken under advisement and all parties were afforded the opportunity to file post-hearing briefs, which have been received and considered, along with the further research of the court. For the reasons which follow, the court will deny the motions to dismiss.

II. FACTS

On November 12, 1985, prior to the filing of the case at bar and based on a previous bid award and supply contract, plaintiff filed an action for injunctive and declaratory relief in the District Court of the Virgin Islands against the same Government defendants (Dist. Ct. Civ. No. 85-391). In that still-pending action, plaintiff sought enforcement of a written contract which required plaintiff to prepare and deliver 95,000 meals for defendant Commission on Aging (Commission) payable by defendant Government in the sum of $460,000. Plaintiff further alleged that of the 95,000 meals contracted for, defendant Commission refused to order 26,699 meals, although plaintiff was ready, willing and able to perform. Plaintiff therefore sued to obtain, among other things, payment for the unordered meals. Plaintiff sought enforcement in the District Court because the contract amount exceeded the $200,000 limitation of the Territorial Court. In answering to plaintiff’s District Court complaint, the Government defendants contended that the amount in controversy did not exceed $200,000. They also denied liability, claiming that they did not intend to be obligated to pay plaintiff for any meals which were not ordered, despite the total [60]*60meals estimated in the contract. Because the language of that contract did not specifically relieve them of liability for unordered meals, the Government defendants changed the language of the new invitation to bid, which is the subject of the case at bar. The new language unequivocally excludes any obligation by the Government to pay for meals until and unless the meals are ordered, prepared, accepted, and delivered.

Specifically, the new language provides, inter alia, as follows:

QUANTITY
Separate quotations will be considered for the provisions on [sic] individually packaged, nutritionally sound meals which meet the 1/3 Recommended Daily Dietary Allowances. The estimated number of meals are as follows:
St. Thomas ...................................................... 60,000 meals
St. Croix .......................................................... 57,000 meals
Provider should be willing to negotiate a decrease in price per meals for each fifty (50) meal increase in the number of meals for the duration of such increase. Of the total number of meals estimated above, the Nutrition Program for the Elderly will only pay for those meals ordered, prepared, accepted and delivered. Of the estimated number of meals requested on this bid, the Commission on Aging reserves the right to order a minimum of 55,000, maximum of 65,000 meals on St. Thomas, minimum of 54,000, maximum of 60,000 meals on St. Croix, during the Fiscal Year 1986 without penalty. (Emphasis added.)

Plaintiff’s Exhibit Ml at P. 2.

On January 10, 1986, plaintiff filed this action seeking injunctive relief here in the Territorial Court, regarding the validity of the bid award for the current period. Plaintiff alleged that defendant Herman Richardson wrongfully awarded bids to provide meals for the elderly, through the Commission on Aging, to Marriott on St. Croix and Hughsons on St. Thomas. Plaintiff had submitted bids to service both islands and alleged that by virtue of its status as the only preferred bidder, it was the lowest effective bidder, among all three bidders, and should have been awarded the bid for both islands.

[61]*61Additionally, plaintiff alleged that although defendant Richardson was aware of the fact the Hughsons, Ltd., had neither a qualified nutritionist nor dietician on staff, and as a result would be unable to perform in accordance with the requirements expressly specified in the invitation to bid, he still awarded the St. Thomas bid to Hughsons. In opposition the Government contended that because federal funds were involved, the preferred bidders law was not applicable.

No contract was entered into between plaintiff and the Government at the time of the hearing on the Injunction, the only question being the validity of the bid awards. At the consolidated hearing of the Preliminary Injunction and the Permanent Injunction, the court found that the federal rules authorized the use of local laws in the circumstances of this case and that the preferred bidders law was in fact applicable, that plaintiff was the only preferred bidder, and that as such, it had submitted the lowest effective bids, and therefore should have been declared the successful bidder. Thus, the Permanent Injunction was granted in favor of plaintiff.

During the hearing on the motions to dismiss, the Government defendants admitted that the change in the language of the invitation to bid was intended to eliminate any obligation on their part to pay for any meals that were not ordered, prepared, accepted, and delivered. They further admitted that they could only place their orders for meals one day in advance of the date of delivery, but would process the bills for payment of the meals on a monthly basis. They also admittéd, consistent with their representation in the District Court case, that they did not consider this bid award to exceed the $200,000 jurisdictional limit of the Territorial Court, and that their reservation of the right to order a minimum or maximum number of meals was not an obligation to do so, but was merely discretionary.

Plaintiff agreed with the Government defendants, as did the representative for Marriott, that based on the contract and past experience with the Commission on Aging they could not determine the maximum or minimum value of the contract until the contract period had expired. No evidence was submitted which contradicted the factual admissions of the Government defendants, but the intervenors have opposed the government’s interpretation of the language of the bid documents regarding the question of jurisdiction based on the number of meals estimated and their projected valuation.

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Cite This Page — Counsel Stack

Bluebook (online)
22 V.I. 56, 1986 V.I. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duvergee-inc-v-government-of-the-virgin-islands-virginislands-1986.