Gariup Construction Co. v. Carras-Szany-Kuhn & Associates, P.C.

945 N.E.2d 227, 2011 Ind. App. LEXIS 598, 2011 WL 1304880
CourtIndiana Court of Appeals
DecidedApril 6, 2011
Docket45A04-1007-PL-429
StatusPublished
Cited by9 cases

This text of 945 N.E.2d 227 (Gariup Construction Co. v. Carras-Szany-Kuhn & Associates, P.C.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gariup Construction Co. v. Carras-Szany-Kuhn & Associates, P.C., 945 N.E.2d 227, 2011 Ind. App. LEXIS 598, 2011 WL 1304880 (Ind. Ct. App. 2011).

Opinion

OPINION

VAIDIK, Judge.

Case Summary

An unsuccessful bidder on a public construction project brought an action under the Indiana Antitrust Act against the architect and the successful bidder, two nongovernmental entities, alleging that they colluded to restrict bidding. The trial court granted summary judgment in favor of the architect and the successful bidder and denied the unsuccessful bidder’s partial summary judgment motion. The unsuccessful bidder now contends that the trial court erred by doing so because: (1) its claim was properly brought under Indiana Code section 24-1-2-3 of the *230 Indiana Antitrust Act as a matter of law, even where it did not allege that the governmental entity was a party to the collusion and (2) genuine issues of material fact exist as to the collusion between the architect and the successful bidder. We conclude that the unsuccessful bidder’s claim was properly brought under Section 24-1-2-3 of the Indiana Antitrust Act. We further conclude, however, that the designated evidence presents no genuine issue of material fact from which a factfinder could reasonably infer that the architect and successful bidder colluded to restrict bidding. Finally, we decline to conclude that the architect and successful bidder are entitled to appellate attorneys’ fees. We affirm the trial court.

Facts and Procedural History

In 2001, the Lake County Public Library (“Library”) and Carras-Szany-Kuhn & Associates, P.C. (“CSK”), entered into a contract providing that CSK would serve as the architect in the construction and/or renovation of branch library facilities. The contract provided in relevant part that CSK “shall assist” the Library in the bidding process:

2.4.2 [CSK] shall assist the [Library] in the preparation of the necessary bidding information, bidding forms, the Conditions of the Contract, and the form of Agreement between the [Library] and Contractor.
$ * ⅜ * * *
2.5.1[CSK], following the [Library]’s approval of the Construction Documents and of the latest preliminary estimate of Construction Cost, shall assist the [Library] in obtaining bids or negotiated proposals and assist in awarding and preparing contracts for construction.

Appellees’ App. p. 10. Thomas Kuhn, who owns one-third of CSK, signed the contract.

In August 2007, CSK completed a project manual for additions and renovations to the Library’s branch facility in Munster. The project manual indicated that Kuhn was the project architect. Sections of the project manual included the Advertisement for Bids and the Instructions to Bidders.

The Advertisement for Bids, which was published twice in August 2007, instructed contractors interested in the Munster project to submit their sealed bids by 1:00 p.m. on September 20, 2007, at which time they would be opened and publicly read. It required each bid to be “properly executed on Indiana State Form 96 including the Non-collusion Affidavit and Contractor’s Financial Statement,” id. at 24, and directed each bidder to submit a satisfactory bid bond in the amount of five percent of the maximum bid, id. at 23. It also required each bidder to submit a complete list of subcontractors within twenty-four hours of the bid due date and time:

Bidders shall submit to the [Library] within hours from the bid due date and time a complete list of all subcontractors to be awarded contracts on this project. Bidder’s bid may be rejected if the sub-contractors list is not submitted as requested in accordance with the Bid Documents. The successful bidder’s award of sub-contractors contracts shall not deviate from the sub-contractors list as submitted unless approved by the [Library]. The Bidder’s subcontractor list is requested to be complete for all subcontracted work and shall list only one subcontractor for each.

Id. at 24 (emphasis added). The Instructions to Bidders provided in pertinent part that the bidders had to comply with the conditions set forth in the Advertisement for Bids:

1.10 AWARD OF CONTRACT-REJECTION OF BIDS
*231 A. The Contract will be awarded to the lowest responsive and responsible bidders complying with the conditions of the advertisement for bids, provided the bidder’s bid is reasonable and to the interest of the [Library] to accept it....

Id. at 28.

The bid proposal form for the project included blanks for, among other things, the base bid, Alternate Bid # 1, Alternate Bid # 2, and the number of days to complete the project. Alternate Bid # 1 was the amount to be added to the base bid to start the project in spring 2008. Alternate Bid # 2 was the amount to be added to the base bid to provide additional light fixtures. The sealed bids were opened and publicly read on September 20, 2007. The only bids relevant to this appeal, those submitted by Gariup Construction Company, Inc., and Gil Behling & Son, Inc., were the lowest bids submitted.

Gariup’s base bid was $717,400, Alternate Bid # 1 increased the base bid by $6000, Alternate Bid #2 increased the base bid by $16,500, and it agreed to complete the work in 168 days.

Behling & Son’s base bid was $730,000, and Alternate Bid # 2 increased the base bid by $10,500. Behling & Son did not include a price for Alternate Bid # 1 or the number of days to complete the project.

Shortly after the opening and reading of the bids, Kuhn reminded Gariup and Behl-ing & Son that they had to submit their subcontractor lists within twenty-four hours of the bid due date and time, as required by the Advertisement for Bids. Behling & Son timely submitted its subcontractor list to CSK. Along with its list, Behling & Son indicated that Alternate Bid # 1 would increase the base bid by $6000 and that it would complete the work in 180 days. Gariup submitted its subcontractor list to CSK at 2:12 p.m. on September 21, one hour and twelve minutes late.

Kuhn gave Behling & Son’s and Gariup’s subcontractor lists to the Library. He told the Library’s attorney, Tim Kelly, that Behling & Son’s list was on time and Gariup’s list was late but offered no opinion on which contractor should get the job.

The Library asked Attorney Kelly to review the bids and provide the Board of Trustees with a legal opinion. In a September 26 letter to the Library, Attorney Kelly noted that each bid must meet five requirements as prescribed by Indiana statute, the State Board of Accounts, and the Library’s published notice to bidders. Each bidder must submit: (1) a bid on Indiana State Form 96; (2) a properly executed non-collusion affidavit; (3) a financial statement; (4) a bid bond for 5% of the maximum bid; and (5) a list of subcontractors within twenty-four hours of the bid due date and time. Attorney Kelly summarized:

These five items are all mandatory and must be part of every bid submitted. The Library Board of Directors cannot legally waive any of these requirements.

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Bluebook (online)
945 N.E.2d 227, 2011 Ind. App. LEXIS 598, 2011 WL 1304880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gariup-construction-co-v-carras-szany-kuhn-associates-pc-indctapp-2011.