Fones Hardware Co. v. Erb

13 L.R.A. 353, 17 S.W. 7, 54 Ark. 645, 1891 Ark. LEXIS 121
CourtSupreme Court of Arkansas
DecidedJuly 3, 1891
StatusPublished
Cited by53 cases

This text of 13 L.R.A. 353 (Fones Hardware Co. v. Erb) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fones Hardware Co. v. Erb, 13 L.R.A. 353, 17 S.W. 7, 54 Ark. 645, 1891 Ark. LEXIS 121 (Ark. 1891).

Opinion

Hemingway, J.

This appeal presents for determination three questions: First—When a board of commissioners for building a bridge across a stream more than 400 feet wide have advertised for and received bids with competitive plans and specifications, can it adopt a plan and specifications thus received and accept the accompanying bid ? Second—Can such board make a contract for building a bridge before any appropriation therefor has been made, or when there is an unexpended appropriation “ for preliminary work, estimates, etc., toward securing such bridge?” Third—If such board is about to make such a contract, will a court of equity, at the suit of a tax-payer of the county, interfere by injunction?

1. Letting contracts for county I. If the first question could be determined by the provisions of the act of February 19, 1891, our response would be, that the board was authorized to adopt a plan and specifications submitted in response to such notice, and to accept the accompanying bid. But it is insisted for the appellant that this act is unconstitutional, because it contravenes section 16, art. 19, of the constitution of the State, which is in the following words: “All contracts for erecting or repairing public buildings or bridges in any county, or for materials therefor, or for providing for the care and keeping of paupers where there are no almshouses, shall be given to the lowest responsible bidder under such regulations as may be provided by law.”

The point made is, that the act does not admit of competitive bidding in awarding contracts, and provides a plan by which the lowest bidder cannot be ascertained, or the giving of contracts confined to such bidder.

The constitutional provision was designed to secure economy in the line of public improvements to which it relates. Extravagance therein might arise either from the inattention or incompetency of the contracting officer, and his consequent failure to obtain favorable offers for contracts ; or it might arise from the corruption or favoritism of such officer and his consequent refusal to accept favorable offers when made. To prevent extravagance from the first source the plan of public letting is adopted, the public are informed of contracts to be let, and its self-interest and rivalry are appealed to for proper offers upon them; to prevent extravagance from the latter source all discretion is-withheld from the contracting officer, he is bound to give the contract to the lowest bidder, and cannot let it out for individual gain or as a reward to another. The method prescribed is well understood, clearly defined and of disstinctive character, specially adapting it to a conservation of public interests. It embodies three vital principles—an offering to the public, an opportunity for competition and a basis for an exact comparison of bids; and any statutory regulation of the matter which excludes or ignores either principle destroys the distinctive character of the system and thwarts the purpose of its adoption. Any arrangement which excludes competition prevents a letting to the lowest bidder; and it does not matter that such an arrangement maintains the form of public letting; if it excludes the essential principle of competition, there can be no real public letting. This is recognized as so essential, that in some cases, where all the forms were preserved, but the contracts to be let were according to plans protected by a patent and the subject of a monopoly, it was held that such contracts could not be made because the monopoly prevented competition. I Dillon on Mun. Corp., sec. 467, and cases cited.

When a contract to build a bridge is to be let, there are two kinds of competition that may arise : First, that between persons desiring to build different kinds of bridges and second, that between those desiring to build the same kind. And as was said by Judge Christiancy in discussing a provision similar to that under consideration, the bidding which it contemplates is of the latter kind—bidding for the same particular thing to be done according to the same specifications. For, says he, no bids for different kinds of' work, and referring to different specifications, could be recognized as coming in competition with each other, for the purpose of determining the lowest bid, within the requirement of this section, without opening the door to the same corrupt combinations, and furnishing facilities for the same fraudulent practices, which it was the purpose of this provision to prevent. Attorney General v. Detroit, 26 Mich., 263. As the competition contemplated is that between those desiring to do the same particular thing according to the same specifications, it is obviously essential that an opportunity should be given all persons to enter into competition for the-specific thing which is the subject of the letting ; and such opportunity cannot be afforded, unless the specific thing to be let has been determined upon and made known. The constitution contains no express provision with regard to plans and specifications, but the requirement of an award to-the lowest bidder implies the further requirement that such information shall be put within the reach of bidders as will enable them to understand the offering and bid intelligently, and enable the representatives of the county to know who-is the lowest bidder. Detroit v. Circuit Judge, 79 Mich., 384. There can be no intelligent bidding for a contract unless all bidders may know what the contract is ; and this cannot be known unless the plan of the work to be contracted for and the specifications according to which it is to be done have been adopted, for they, with the price to be agreed upon, go to make up the contract.

In the case of Boren v. Darke County, 21 Ohio St., 311, the Supreme Court of Ohio held, under a statute embodying the provisions of our constitution, that a bid could not be entertained which contemplated work or material not included in the plans and specifications according to which the contract was offered. This ruling was placed upon two grounds: First, that it could not be known who was the lowest bidder; and second, that the contract thus bid for had not been submitted to competition.

In the case of People v. Commissioners, 4 Neb., 150, the Supreme Court of Nebraska, considering the question upon a similar provision, ruled that, from the necessity of the case, plans and specifications must be adopted in advance of the offering as a basis upon which bids are to be made, and that where county commissioners advertised for plans and specifications with accompanying bids, they could not adopt plans and specifications and accept a bid thus received, because no opportunity had been given for competitive bidding, and no basis had been fixed on which to make bids.

In the case of Bigler v. The Mayor, 5 Abb., N. C., 51, an action was brought upon a contract with a city to recover the price of lumber furnished, and the recovery was resisted -on the ground that the contract was invalid because it had not been let to the lowest bidder. The advertisement was for bids to furnish nine different kinds of timber during the term of one year, specifying each kind of timber, but not specifying "the quality of either or the aggregate.

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Bluebook (online)
13 L.R.A. 353, 17 S.W. 7, 54 Ark. 645, 1891 Ark. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fones-hardware-co-v-erb-ark-1891.