Emerald Enterprises, Ltd. v. City of Oklahoma City

1997 OK CIV APP 19, 939 P.2d 27, 68 O.B.A.J. 1472, 1997 Okla. Civ. App. LEXIS 19, 1997 WL 205265
CourtCourt of Civil Appeals of Oklahoma
DecidedJanuary 14, 1997
DocketNo. 87323
StatusPublished
Cited by1 cases

This text of 1997 OK CIV APP 19 (Emerald Enterprises, Ltd. v. City of Oklahoma City) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Emerald Enterprises, Ltd. v. City of Oklahoma City, 1997 OK CIV APP 19, 939 P.2d 27, 68 O.B.A.J. 1472, 1997 Okla. Civ. App. LEXIS 19, 1997 WL 205265 (Okla. Ct. App. 1997).

Opinion

MEMORANDUM OPINION

GARRETT, Judge:

Emerald Enterprises, Ltd. (Appellant) sued the City of Oklahoma City (City), Central Oklahoma Transportation and Parking Authority (COTPA) and S.M.J. Industries, Inc. (SMJ), (collectively, Appellees), for a declaratory judgment, contending the City violated its City Charter when it purchased real property to relocate the COTPA bus maintenance facility without competitive bidding. Appellant also sought a permanent injunction to restrain the City from performing under the contract.

Appellees filed motions to dismiss Appellant’s petition for failure to state a claim upon which relief can be granted, under 12 O.S. 1991 § 2012(B)(6). The trial court sustained the motions to dismiss as to all Ap-pellees. The court specifically found the applicable provision of the Oklahoma City Charter, Art. IX, § 4,1 is inapplicable to the acquisition of real estate and does not require competitive bidding. The court found [29]*29Appellant’s petition contained an incurable pleading defect which could not be remedied and dismissed Appellant’s petition with prejudice. Appellant filed a Motion to Reconsider (Or For A New Trial), which was denied. This appeal followed.

For reversal, Appellant raises the following issues of error:

1. Whether the trial court erred when it determined that the city charter provision requiring competitive bidding on “all other contracts upon the part of the City of whatever character” does not apply to contracts for the-purchase of real estate;
2. Whether the trial court erred when it determined that the city charter provision requiring competitive bidding on “all contracts pertaining to public improvements” does not apply to a contract for the acquisition of real property entered into for the express purpose of moving a facility in order to construct public improvements on the property vacated;
3. Whether the trial court denied Appellant due process and a fair hearing when it granted the motion to dismiss before Appellant had the opportunity to receive and respond to new matter raised in Appellees’ reply brief filed in support of the motion to dismiss; and
4. Whether the trial court erred when it denied Appellant’s motion to reconsider (or for new trial).

Appellant alleged in its amended petition the City owned land leased to COTPA for its mass transit operations and a bus maintenance facility, and that under the MAPS plan, it became necessary to relocate COTPA in order to construct a sports facility on that land. Appellant alleged it had contacted the City with a bid to sell its property consisting of 50 acres of undeveloped land located at S.E. 25th and High Streets, Oklahoma City, to COTPA for its bus facility. It offered to sell the property at $10,000.00 per acre and submitted cost estimates to the City for paving and building construction to make the land suitable for COTPA’s purposes. Appellant alleged, however, that the City never responded to its offer, and property owned by Turner Brothers was bought at a price higher than Appellant’s bid. Appellant alleged COTPA failed to follow Art. IX, § 4 of the City Charter, requiring competitive bidding for the purchase. It contends Turner Brothers’ property was really bought with City funds because proceeds from the sale of COTPA’s property to the City were used to purchase it. Appellant alleged the contract between City and COTPA and the contract between COTPA and Turner Brothers together constitute an agreement among City; COTPA and Turner for the City, as the real party in interest; and COTPA as the nominal party in interest, to acquire Turner Brothers’ property with City funds.

Appellant alleged all taxpayers of the City have been injured by City’s failure to obtain the lowest and best bid in the acquisition of the property and that Appellant was specifically injured by City’s refusal to consider its bid under § 4.

In Appellees’ motion to dismiss, they alleged: (1) case law provides that provisions such as Art. 9, § 4 do not require competitive bidding for acquiring real estate; (2) accepting Appellant’s construction of the charter provision would render meaningless other provisions of the charter, i.e., Art. I, §§ 1, 5, which expressly grant to the City the power to acquire real estate; and (3) under the rule of ejusdem generis, the general wording of Art. IX, § 4 concerning “all other contracts upon the part of the City of whatever character” must be restricted to mean contracts analogous to or of the same general kind or class as those enumerated in the preceding specific wording of the section, which do not include real estate contracts.

First, City argued that case law in other states and one Oklahoma Court of Criminal Appeals case, Ex parte Houston, 93 Okla.Crim. 26, 224 P.2d 281 (1950), hold in line •with the majority rule, as to the power of a municipality to acquire real estate without competitive bidding, which is in line with 64 Am.Jur.2d, Public Works and Contracts, § 45:

Where the proper purpose of a contract is simply to acquire specific property, the principle of competitive bidding is said to be inapplicable. Thus, it has been held that a state is not required to submit to [30]*30competitive bidding in order to acquire title to property by agreement-with the owner or by the exercise of the right of eminent domain.
Contracts for the renting of real property or the hire of chattels generally are not considered within provisions requiring contracts for work, supplies, or materials to be let upon competitive bidding.

Although factually distinguishable from the instant case, Ex parte Houston, supra, considered Art. IX, § 4 of the Oklahoma City Charter, the same provision at issue here. Although it is dicta, the Court of Criminal Appeals stated there are well recognized exceptions to competitive bidding provisions such as this. The Court stated, 224 P.2d at page 295:

And where there are statutory or charter provisions requiring competitive bidding, there are well recognized exceptions. For instance, contracts for renting of real property or the hire of chattels generally are not considered within provisions requiring contracts for work, supplies or materials to be let upon competitive bidding. Ambrozich v. City of Eveleth, 200 Minn. 473, 274 N.W. 635, 112 A.L.R. 269. Nor professional services of an engineer, physician, lawyer, artist, etc. The reason for the exception in the first instance is that the location of a particular structure may answer the needs of a municipality, where some other building might not; and where professional and personal services of a specialized nature are required, the municipality may better safeguard the public interest by negotiation rather than competitive bidding, because the low bidder might cause the municipality untold damage and loss. The problem is to contract with individuals who are best qualified to and who give promise of, best serving the interest of the municipality and the public.

Cited approvingly in Ex parte Houston is Ambrozich v. City of Eveleth, 200 Minn. 473, 274 N.W. 635 (1937). It considered whether the City had the power to lease real property for use as a public restroom without advertising for competitive bids.

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1997 OK CIV APP 19, 939 P.2d 27, 68 O.B.A.J. 1472, 1997 Okla. Civ. App. LEXIS 19, 1997 WL 205265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emerald-enterprises-ltd-v-city-of-oklahoma-city-oklacivapp-1997.