Goldwin-Kent, Inc. v. County of Broome

107 Misc. 2d 722, 435 N.Y.S.2d 1011, 1981 N.Y. Misc. LEXIS 2090
CourtNew York Supreme Court
DecidedJanuary 21, 1981
StatusPublished
Cited by4 cases

This text of 107 Misc. 2d 722 (Goldwin-Kent, Inc. v. County of Broome) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldwin-Kent, Inc. v. County of Broome, 107 Misc. 2d 722, 435 N.Y.S.2d 1011, 1981 N.Y. Misc. LEXIS 2090 (N.Y. Super. Ct. 1981).

Opinion

[723]*723OPINION OF THE COURT

Richard F. Kuhnen, J.

Petitioner seeks by this article 78 proceeding to review the action of the Broome County Legislature on December 9, 1980, awarding to respondent Innerst Medical Supply, Inc., a contract for supplying unit dosage medication services to two extended care nursing facilities, commencing January 1, 1981. The contract was held by petitioner to that date. A temporary stay restraining respondents from taking any further action in furtherance of the award of the contract pending the determination of the court has been denied.

Prior to October 24, 1980, the Broome County purchasing director advertised for competitive bids on the new contract, on specifications prepared by the nursing homes’ administrator. The specifications called for “Drustar 24 hour medication exchange system or Drustar 7 day exchange system, or equivalents providing they meet the needs of the facility”. The specifications also reserved the right “as the interest of the County may required [sic] to reject any and all bids and to waive any informality in bids received”.

Thereafter, on October 24, 1980, the bids were opened at the scheduled time and it was determined that respondent Innerst, doing business as Gordon’s Drugs’ bid was the lowest of the four submitted, with petitioner GoldwinKent, Inc., second.

Subsequently, petitioner raised objections with the purchasing director that the bid submitted by Gordon’s Drugs did not meet the specifications, but these objections were rejected after consideration. However, the county officials were evidently disturbed at the possibility of legal action and consulted the County Law Department which became aware, it is claimed, for the first time, that the contract had been submitted on competitive bids although, if a contract for professional services, it was not necessarily subject to competitive bidding. The Law Department thereafter determined that it was a contract for professional services and that the bids submitted should be considered on that basis. By letter dated November 19, [724]*7241980, to all four bidders, the Law Department so informed them and invited also alternate proposals for consideration by the legislature at its meeting scheduled for November 20. The letter was hand delivered to the attorneys for Goldwin-Kent, Inc., at 11:10 a.m. on November 20, prior to the meeting of the legislature which was scheduled to take place at 2:00 p.m. on that day. A letter of protest was immediately delivered to the Law Department objecting to the procedure, insisting that petitioner should be considered the low bidder, that the county “does not have the right to reject all bids and then to accept the ‘proposal’ of Gordon as an exempt professional services contract”, and threatening legal action if the county awards the contract to Gordon’s Drugs.

What occurred thereafter is not entirely clear and is in some dispute. There was evidently some confusion on the part of the public health committee of the county, some vacillation, and some lack of communication between the various departments of the county involved. A proposed resolution of the health committee awarding the contract to Gordon’s Drugs, on November. 20, was considered by the legislature on that date, but held over. It was again considered by the health committee on December 8 and petitioner’s attorneys appeared before the committee on that date and submitted four new and separate proposals for unit dosage supply. The committee, after hearing the proposals, decided not to consider them and to consider only the proposals submitted on the original bids. Again, by letter on the following day, petitioner objected and threatened suit.

On December 9, 1980, the Broome County Legislature, by a vote of 17-2, adopted the resolution awarding the contract to Gordon’s Drugs and the contract was executed on December 18, 1980.

The position of petitioner on this proceeding, which was immediately instituted after the events recited, is that: (1) whether or not the contract involved professional services, the county is bound to follow the competitive bidding procedure of section 103 of the General Municipal Law once it has solicited, received and opened competitive bids; (2) a question of fact is presented as to whether the [725]*725bid of Gordon’s Drugs did not comply with the specifications and should therefore be rejected; and (3) a question of fact is presented as to whether the county acted in good faith and for the public interest.

The relief sought by petitioner is that the award of the contract to Gordon’s Drugs should be set aside and the contract awarded to petitioner, or in the alternative, that the contract and all bids should be vacated and new bids solicited. In the meantime, as pointed out, petitioner requested a stay until determination of the proceeding and this has been denied in view of the importance that there be no interruption in services to the two nursing facilities.

The county takes the position that the .action of the county legislature is not reviewable by way of an article 78 proceeding, that the contract involved was one for professional services and therefore exempt from the requirements of competitive bidding, and that if not, the contract had to be awarded to Gordon’s Drugs as the lowest bidder.

We will examine each of these contentions in turn.

THE FORM OF THE ACTION

This proceeding is essentially one to review the action of the Broome County Legislature in awarding the contract to Gordon’s Drugs on December 9, 1980, by Resolution No. 405. Although an article 78 proceeding may not be utilized to review a legislative act (Matter of Lakeland Water Dist. v Onondaga County Water Auth., 24 NY2d 400), however, as pointed out in the decision cited, the form of the action or proceeding is not controlling as long as a remedy is available. (See CPLR 103.)

The county concedes this but argues that the court must nevertheless have jurisdiction of the necessary parties, in this case the members of the Broome County Legislature, and that they have not been made parties as such (Matter of National Merritt v Weist, 50 AD2d 817, affd 41 NY2d 438). The county itself, however, has been made a party respondent and, in the court’s opinion, was the proper party as the contract involved was made, not with the legislature, but with the county on authorization of its agent, the legislature. (See County Law, § 51.)

[726]*726WHETHER THE CONTRACT INVOLVES PROFESSIONAL SERVICES

The competitive bidding requirements of statutes such as subdivision 1 of section 408-a of the County Law, and section 103 of the General Municipal Law, have been held inapplicable to contracts requiring special skills or training (People ex rel. Smith v Flagg, 17 NY 584). In that case the court pointed out that (p 587) “[i]t would be an unreasonable and mischievous construction of the statute [the competitive bidding statute involved] to apply it to services which require in their proper performance scientific knowledge or professional skill”. The list of services since recognized by the court as being within the exception include insurance contracts (Matter of Surdell v City of Oswego, 91 Misc 2d 1041; Matter of Lynd v Heffernan, 286 App Div 597, opp withdrawn 1 NY2d 919), stadium management (Hurd v Erie County,

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Bluebook (online)
107 Misc. 2d 722, 435 N.Y.S.2d 1011, 1981 N.Y. Misc. LEXIS 2090, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldwin-kent-inc-v-county-of-broome-nysupct-1981.