Great Falls Tribune Co., Inc. v. Day

1998 MT 133, 959 P.2d 508, 289 Mont. 155, 26 Media L. Rep. (BNA) 2377, 55 State Rptr. 524, 1998 Mont. LEXIS 114
CourtMontana Supreme Court
DecidedMay 29, 1998
Docket98-216
StatusPublished
Cited by21 cases

This text of 1998 MT 133 (Great Falls Tribune Co., Inc. v. Day) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great Falls Tribune Co., Inc. v. Day, 1998 MT 133, 959 P.2d 508, 289 Mont. 155, 26 Media L. Rep. (BNA) 2377, 55 State Rptr. 524, 1998 Mont. LEXIS 114 (Mo. 1998).

Opinions

JUSTICE TRIEWEILER

delivered the opinion of the Court.

¶1 The petitioner, Great Falls Tribune Company, Inc., filed a petition in the District Court for the First Judicial District in Lewis and Clark County in which it sought an order restraining the respondent, Rick Day, as Director of the Department of Corrections for the State of Montana, from excluding members of the public from meetings of the Department’s Private Prison Screening and Evaluation Committee. The District Court held that neither the petitioner nor other members of the public had a right to observe the deliberations of the committee during the negotiation phase of its work, but that once its negotiations had been completed, the process by which it arrives at its conclusions must be open to public observation. Both the Tribune and the Department of Corrections appeal from the District Court’s order. We reverse that part of the District Court order which excludes the petitioner and other members of the public from the committee’s deliberations.

¶2 The issue on appeal is whether § 18-4-304, MCA, as applied by the Director of the Department of Corrections to the facts in this case, violates Article II, Section 9, of the Montana Constitution, which guarantees to the people of Montana the right to examine documents and observe deliberations of all public bodies or agencies of state government.

FACTUAL BACKGROUND

¶3 In 1997, the Montana Legislature enacted §§ 53-30-601 to -611, MCA, which authorize the Department of Corrections to contract for the private operation of correctional facilities in Montana. Section [158]*15853-30-605, MCA, requires that, prior to contracting for services with a private correctional facility, the Department must publish a request for proposals which “must include a description of the long-range correctional needs, objectives, and goals of the department and the state.” That statute also provides a detailed list of the information that each proposal must include.

¶4 On December 1,1997, the Department published a Request for Proposal (RFP) for the development and operation of a 500-bed private, adult male prison facility pursuant to § 18-4-304, MCA, §§ 53-30-601 to -611, MCA, and § 2.5.602, ARM. The RFP also stated, at paragraph 1.1.4.2, that “[pjrior to award of contract, proposal information submitted in response to this RFP will be disclosed only to the persons participating in the evaluation or contracting process. The proposals will not be publicly opened.” This provision of the RFP reflected the requirements of § 18-4-304(4), MCA, and § 2.5.602, ARM. Section 18-4-304(4), MCA, is part of the Montana Procurement Act which was enacted by the Legislature in 1983. Section 18-4-302, MCA, provides that all state contracts for services must be awarded by a selection process provided for in the Procurement Act. Section 18-4-303, MCA, provides for awards following competitive sealed bidding, and § 18-4-304, MCA, provides for awards following competitive sealed proposals. Subparagraph (4) of that statute provides as follows:

Proposals must be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. A register of proposals must be prepared in accordance with rules adopted by the department and must be open for public inspection after contract award. After the contract is executed, proposal documents may be inspected by the public, subject to the limitations of the Uniform Trade Secrets Act, Title 30, chapter 14, part 4.

Section 18-4-304(4), MCA.

¶5 In response to the Department’s RFP, five private companies submitted proposals for construction of a private correctional facility in Montana. Rick Day, Director of the Department of Corrections, appointed a twenty-one-member committee to review the proposals, evaluate them, and make recommendations to him regarding which company to select.

¶6 At the committee’s orientation meeting on March 16,1998, Day instructed the committee that:

[159]*159Our goal is to select a new member of our partnership, a private prison contractor, through a neutral and objective process — a process which provides the best opportunity for Montana to obtain the most effective, professional, public safety-conscious, efficient prison service and which also provides evidence of strong local support. ...
This brings us to why we are here today. Each of you have been assigned to this extremely important committee. Your task will be to critically evaluate each submission. While performing your other jobs some of you must be prepared to make this assignment a three-or four-month priority.
State law requires that proposals be opened in a manner that avoids disclosure of contents to competing offerors, and prohibits the discussion of proposals which might reveal information to competing offerors (§ 18-4-304, MCA). What this means is that your work, evaluation, scoring and discussion is at this time confidential. Consequently, you cannot discuss this information with parties outside of this committee. In fact, if you are contacted you must advise the party that you cannot discuss the proposal information and you must immediately report this contact and any contact which may potentially influence the process to the Director’s Office. Although sometimes difficult to understand, this process is designed by law and recognizes the proposers’ legitimate expectation of privacy in their proposals. Once the contract is signed the proposals and related documents are open to public inspection.
... The work you do will have a lasting effect on Montana corrections well into the next century.

(Emphasis added.)

¶7 The Great Falls Tribune, Inc., is a daily newspaper circulated throughout the state of Montana with its headquarters in Great Falls. On April 3,1998, it petitioned the District Court to restrain Day and the Department’s committee from holding its meetings in private and to require that all papers associated with the meetings be open to public inspection. The Tribune alleged that Day’s directive to the committee that its work be done privately violates its rights guaranteed by Article II, Section 9, of the Montana Constitution, by denying it the right to observe deliberations and examine documents of a public body.

[160]*160¶8 In response, the Department contended that the public’s right to observe the committee’s deliberations and review its records, including proposals, was outweighed by the five vendors’ rights to privacy in the information they had submitted. The Department contended that the proposals submitted by the five vendors included trade secrets and proprietary information and that the committee could not evaluate those proposals in public without revealing that information.

¶9 Following a hearing at which a reporter for the Tribune, two state officials, and three representatives from the private vendors testified, the District Court held that while the five vendors had no reasonable expectation of privacy after a contract has been awarded, they do have a reasonable expectation that their proposals will be kept confidential during the negotiation process.

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Bluebook (online)
1998 MT 133, 959 P.2d 508, 289 Mont. 155, 26 Media L. Rep. (BNA) 2377, 55 State Rptr. 524, 1998 Mont. LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-falls-tribune-co-inc-v-day-mont-1998.