Hines v. Board of Education of the Cleveland City School District

499 N.E.2d 39, 26 Ohio Misc. 2d 15, 26 Ohio B. 348, 1985 Ohio Misc. LEXIS 110
CourtCuyahoga County Common Pleas Court
DecidedJuly 22, 1985
DocketNo. 074531
StatusPublished
Cited by6 cases

This text of 499 N.E.2d 39 (Hines v. Board of Education of the Cleveland City School District) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hines v. Board of Education of the Cleveland City School District, 499 N.E.2d 39, 26 Ohio Misc. 2d 15, 26 Ohio B. 348, 1985 Ohio Misc. LEXIS 110 (Ohio Super. Ct. 1985).

Opinion

James J. McMonagle, J.

This matter came before this court upon the plaintiff’s complaint seeking declaratory relief, a temporary restraining order, and a preliminary permanent injunction.

Pursuant to the Rules of Civil Procedure, the request for temporary restraining order and preliminary permanent injunction were merged into a hearing on the merits in the matters now before this court, the issues having been joined by answers filed by all of the defendants. The plaintiff’s complaint seeks relief against the Board of Education of the Cleveland School District (“the board”) and its individual members, Alva T. Bonda, Joseph G. Tegreene, Joseph M. Gallagher and Ralph J. Perk, Jr., and also against Frederick D. Holliday, Superintendent of the school system; Paul Yacobian, Business Manager of the system; and Automated Disposal, Inc. (“ADI”), the successful bidder on the contract that is the subject of the within lawsuit.

The complaint of the plaintiff-taxpayer, Elsie Hines, substantially states, inter alia, that the board abused its discretion, and violated state law and federal court orders in the manner and [16]*16means by which it awarded ADI a contract for the hauling and disposal of garbage generated in connection with the operation of the Cleveland Public School system.

The facts concerning events prior to April 26, 1984, the date of the awarding of the subject contract, are substantially not in dispute.

In 1981, the board advertised for bids for the removal and disposal of rubbish from the board’s various physical structures, both school buildings and administrative buildings. Pursuant to the bids submitted, the board signed a contract with Regional Refuse Systems, Inc. (“Regional”), and ADI, a joint venture. This contract provided that the Regional-ADI joint venture would remove the board’s garbage for $1.44 per cubic yard from November 1, 1981 through December 31, 1982.

On March 4,1982, the board and the above-mentioned joint venture entered into a supplemental agreement allowing Regional to withdraw from the joint venture and assign its interest to ADI.

Browning Ferris Industries of Ohio (“BFIO”) and ADI entered into an oral agreement by which BFIO would be responsible for collecting the trash and ADI would be responsible for any contact with the board. Pursuant to this agreement, BFIO reported to ADI the amount of refuse it had picked up each week and charged ADI $1.84 per cubic yard. Based upon what is reflected in these reports, ADI retained seven percent of the monies that are collected for its services rendered in its relations with the board. BFIO received $1.71 per cubic yard for the refuse it hauled for the board, or, in other words ninety-three percent of the $1.84 per cubic yard charge.

On January 25, 1983, the board and ADI entered into another supplemental agreement. This agreement extended the original contract from January 1, 1983, through December 31, 1983, with a price per cubic yard of $1.84.

This extension was based upon the original joint venture’s bid proposal dated October 5, 1981, which had contained a clause permitting two one-year options at specified prices.

In late 1983, ADI proposed to extend its previous contract to December 31, 1984, at the rate of $1.84 per cubic yard and also proposed that the board should be permitted to have four one-year options at the rate of $1.84. The board, however, refused to reformulate and rewrite the specifications, but instead opted to enter into an interim contract for 1984.

In January 1984, the board passed Resolution No. 49-84 authorizing the business chief to negotiate a contract with ADI for $1.84 per cubic yard for

1984. ADI did not sign this contract. However, its subcontractor, BFIO, did continue to remove the board’s garbage without a contract, but submitted bills charging the board $3.50 per cubic yard.

On March 19, 1984, the board’s Audit Committee met and conversation was had regarding competitive bidding of the trash-hauling contract.

On April 26, 1984, Resolution No. 250-84 appeared before the board, authorizing the business chief to enter into a new contract with ADI at a price of $1.84 per cubic yard for the years 1984, 1985, and 1986. This resolution had not previously been submitted to either the Business Affairs Committee or to any other committee of the board. The board discussed the merits of the resolution, and heard testimony from an individual who was an officer of the Inland Refuse Transfer Company who indicated that his firm could perform like or similar services at a lower cost to the board. The board, however, voted to enter into an agreement with ADI. Subsequent to the board’s passage of the resolution, the business chief certified that the monies were available to [17]*17fund such a contract, and the state fiscal officer (who had been assigned to oversee the board’s operation since it was in receivership at that time) also indicated approval from the state.'

In order to prevail on the merits of this case, the plaintiff-taxpayer must prove, by clear and convincing evidence, that:

(1) the board’s award of this contract to ADI constituted an abuse of discretion; and

(2) the award of this contract resulted in some tangible harm to the public in general, or to the plaintiff as an individual.

The court, in White v. Long (1967), 12 Ohio App. 2d 136 [41 O.O.2d 200], acknowledged the gravity of the task presented by a complaint for equitable relief such as the one before us, as follows:

“There are fixed rules to guide the courts in the granting or refusing of injunctions. The right to an injunction must be clear and the proof thereof clear and convincing, and the right established by the strength of plaintiff’s own case rather than by any weakness of that of his adversary.
“It is said an injunction will not be granted where damage is trifling, fanciful, sentimental or a mere inconvenience, and that the invasion of a private right without actual and palpable injury does not stir the conscience of the court so that injunction will lie.
“It is said that caution should be exercised in granting injunctions, and especially so in cases affecting a public interest where the court is asked to interfere with or suspend the operation of important public works or to control the action of another department of government.’’ Id. at 140.

With these cautionary words in mind, we must ascertain whether or not the board abused its discretion by awarding the trash-hauling contract to ADI. The board awarded the contract without utilizing the competitive bidding or requests for proposals processes. A minority business enterprise was neither sought out nor retained for the job. Certifying and verifying signatures were not obtained until after the board resolved to grant the contract to ADI. Moreover, at the time that the board was considering ADI, its Articles of Incorporation had been cancelled by the Secretary of State for non-payment of franchise taxes. Do these facts taken together constitute abuse of discretion? The term “abuse of discretion” connotes more than an error of law or of judgment. Indeed, it implies an unreasonable, arbitrary or unconscionable attitude. See Dayton, ex rel. Scandrick, v. McGee (1981), 67 Ohio St. 2d 356, 359 [21 O.O.3d 225].

It is true that trash-hauling contracts were competitively bid in prior years.

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Bluebook (online)
499 N.E.2d 39, 26 Ohio Misc. 2d 15, 26 Ohio B. 348, 1985 Ohio Misc. LEXIS 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hines-v-board-of-education-of-the-cleveland-city-school-district-ohctcomplcuyaho-1985.