Hawaii Corporation v. Kim

500 P.2d 1165, 53 Haw. 659, 1972 Haw. LEXIS 165
CourtHawaii Supreme Court
DecidedSeptember 11, 1972
Docket5329
StatusPublished
Cited by14 cases

This text of 500 P.2d 1165 (Hawaii Corporation v. Kim) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hawaii Corporation v. Kim, 500 P.2d 1165, 53 Haw. 659, 1972 Haw. LEXIS 165 (haw 1972).

Opinions

OPINION OF THE COURT BY

KOBAYASHI, J.

The Hawaii Corporation, dba Pacific Construction Company, hereinafter called the appellant, filed a complaint in the trial court seeking to enjoin KeNam Kim, Comptroller, State of Hawaii, hereinafter called the appellee, from letting [660]*660the contract for the construction of Oahu Stadium to Dillingham Corporation, dba Hawaiian Dredging & Construction Company, hereinafter called the intervenor.

The trial court denied appellant’s request for injunction and dismissed its complaint.

FACTS

Appellee, the state officer charged with letting construction contracts, issued and caused to be published a Notice to Contractors, the pertinent paragraphs of said notice for the purpose of this appeal being, to-wit:

SEALED PROPOSALS will be received by the Comptroller, State of Hawaii, at the fifth floor of the Kekuanaoa Building in Honolulu, Hawaii, up to 2:00 o’clock P.M., H.S.T., THURSDAY MAY 18, 1972, for “Oahu Stadium, D.A.G.S. JOB NO. 02-10-1134.2,” and will then and there by [sic] opened and publicly read aloud. Bids received after the time fixed for opening will not be considered.
Plans and specifications and forms of contract documents may be examined at the office of the Comptroller in Honolulu and plans, specifications and contract forms may be obtained upon deposit of currency or certified check made payable to Director of Finance ....
All prospective bidders shall file at the Office of the Comptroller written notice of their intention to bid not later than six (6) calendar days prior to the date herein above designated for opening of bids.
The Comptroller reserves the right to reject any and/or all bids and waive any defects when, in his opinion, such rejection or waiver will be in the best interests of the State of Hawaii.

Appellant responded to the notice to contractors and obtained from appellee’s office plans, specifications and contract forms by depositing a certified check made payable to the Director of Finance. Included with the plans, speci[661]*661fications and contract forms was a document entitled “General Requirements and Covenants” and section 2.1 thereof states in detail the requirements of “Competency of Bidders” and section 2.2 of said document states the conditions of “Disqualification of Bidders.” Said section 2.1 and portion of section 2.2 are restated in a document entitled “Special Notice to Bidders.”

In said special notice, the paragraphs pertinent to this appeal read as follows:

COMPETENCY OF BIDDERS — Each prospective bidder must file a written notice of his intention to bid not later than six (6) calendar days prior to date designated for the opening of bids as required by section 103-25, Hawaii Revised Statutes.
The written notice of intention to bid is to be filed in the office of the Comptroller in the State Office Building at Honolulu, Hawaii, not later than 4:30 p.m. of the Friday preceding the Thursday of the bid opening, unless otherwise instructed in the Notice to Contractors. If the notice is mailed, the hour of posting must be stamped by the postal authorities and be prior to 12 midnight of the Friday described above. Commercial meter stamp on mailed notices will not be accepted should the mailed notice arrive after the deadline described above.
DISQUALIFICATION OF BIDDERS — Any one or more of the following causes will be considered as sufficient for the disqualification of the bidder:
1. Non-compliance with section 2.1 “COMPETENCY OF BIDDERS”.

Though appellant claimed that it gave notice of its intention to bid to the appellee by mail by depositing its written notice of intention to bid in the U.S. mails on May 9, 1972, the following critical evidence was adduced: Appellant addressed its written notice of intention to bid to “Director of Finance, 465 South King Street, Honolulu, Hawaii 96813.” [662]*662The street address is that of the State Office Building in which the appellee maintains his office. By stipulation between the appellant and appellee it was agreed at the trial that appellant had placed appellant’s written notice of intention to bid in an envelope addressed to the Director of Finance at 465 South King Street, stamped the envelope with a commercial meter stamp and then placed it in a place customarily designated for pick up of mail by the U.S. postal carrier.

Appellant’s written notice of intention to bid was ultimately hand-delivered to the appellee’s office at 8:11 a.m., Wednesday, May 17,1972, the day before the date designated for opening of bids by appellee. The said written notice, dated May 9, 1972, showed a time stamp marking of 12:04 p.m., May 11, 1972, of the Purchasing Section, Department of Finance, City and County of Honolulu. The written notice lacked any attachment of a mailed envelope with the hour of posting stamped by the postal authorities showing a posting prior to 12 midnight of the Friday preceding the Thursday of the date of bid opening. A commercial meter stamp was also lacking.

On May 17,1972 appellee, confirming his telephone statement to appellant disqualifying appellant, wrote a letter informing appellant that it was not qualified to bid because its written notice of intention to bid was not received within the time specified in the special notice toindders. Appellant received said letter on May 19, 1972.

Appellant requested appellee to exercise his discretionary powers and waive appellant’s failure in meeting the time specified in filing its written Notice of Intention of Bid. Appellee refused to waive the defect.

Notwithstanding appellee’s refusal to permit appellant to bid, appellant submitted a sealed bid prior to the specified deadline of 2:00 p.m., Thursday, May 18, 1972. Appellee, however, refused to open or consider appellant’s sealed bid. At the bid opening appellant orally stated the amount of appellant’s bid which, if correctly stated, was the lowest of all.

[663]*663ISSUES

Appellant urges upon this court that the trial court erred:

1. In ruling that the appellee lawfully disqualified appellant from bidding for the Oahu Stadium Contract because its Notice of Intention to Bid was not timely given;

2. In not ruling that the appellee’s refusal to waive the defect in appellant’s said notice was an abuse of discretion.

TIMELY NOTICE OF INTENTION TO BID

Paragraph No. 7 of the findings of fact of the trial court reads as follows:

. . . [T]here was no evidence on which the Comptroller could determine whether the Notice had been mailed or not, or if mailed it had been stamped by the postal authorities or by a commercial meter stamp.

In paragraph No. 8 thereof the trial court states:

Assuming that Pacific’s Notice was delivered through the mails, Pacific is responsible for the delay in its arrival at the Comptroller’s office because of the mis-addressing of the Notice to the “Director of Finance” rather than to the Comptroller. The evidence is not credible that the Comptroller’s office instructed Pacific to address its Notice to the “Director of Finance.”

The trial court in its conclusions of law held:

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Hawaii Corporation v. Kim
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Bluebook (online)
500 P.2d 1165, 53 Haw. 659, 1972 Haw. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawaii-corporation-v-kim-haw-1972.