Hoon v. Pate Const. Co., Inc.

607 So. 2d 423, 1992 WL 211718
CourtDistrict Court of Appeal of Florida
DecidedSeptember 2, 1992
Docket90-1254, 90-2284, 91-0035
StatusPublished
Cited by29 cases

This text of 607 So. 2d 423 (Hoon v. Pate Const. Co., Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoon v. Pate Const. Co., Inc., 607 So. 2d 423, 1992 WL 211718 (Fla. Ct. App. 1992).

Opinion

607 So.2d 423 (1992)

L. Ed HOON, and Hoon & White, Architects, Inc., a Florida corporation, and Fairview Properties, Inc., a Virginia corporation qualified to do business in the State of Florida as Fairview South, Inc., Appellants/Cross Appellees,
v.
PATE CONSTRUCTION COMPANY, INC., a Florida corporation, Appellee/Cross Appellant.

Nos. 90-1254, 90-2284, 91-0035.

District Court of Appeal of Florida, Fourth District.

September 2, 1992.
Motions for Rehearing and Certification Denied October 13, 1992.

*424 Larry Klein of Klein & Walsh, P.A., West Palm Beach and Crary, Buchanan, Bowdish & Bovie, Stuart for appellants/cross appellees.

Leif J. Grazi of Law Offices of Grazi Gianino & Cohen, Stuart, and Marjorie Gadarian Graham, P.A., West Palm Beach, for appellee/cross appellant.

Thomas J. Guilday of Huey Guilday Kuersteiner & Tucker, Tallahassee, Amicus Curiae — Florida Ass'n American Institute of Architects.

PER CURIAM.

This is an appeal and cross appeal from a judgment, and post verdict orders, on claims by appellee, Pate Construction Company, Inc., against appellants, L. Ed Hoon, Hoon & White, Architects, Inc., and Fairview Properties, Inc., arising out of events surrounding Fairview's failure to award a construction contract to Pate after Pate submitted a low bid. We reverse.

Pate sued Fairview, the property owner and the owner's architects, on multiple counts. At trial the court directed a verdict for defendants on quantum meruit and promissory estoppel. The jury found in favor of Pate as to the remaining counts, and awarded various damages: (1) $123,000 compensatory damages for breach of implied contract; (2) $150,000 compensatory damages and $100,000 punitive damages for negligent misrepresentation; (3) $7,000 for defamation; (4) $1,000,000 compensatory damages and $1,150,100 punitive damages for conspiracy to defame; and (5) $100,000 compensatory damages and $550,000 punitive damages for civil conspiracy. Subsequently, the trial court granted a new trial as to damages on the claim for negligent misrepresentation and conspiracy to defame. The trial court also set aside the verdict on negligent misrepresentation as to Hoon and Hoon & White.

The trial court entered a final judgment: (1) against all defendants for $123,000 compensatory damages for breach of implied contract; (2) against all defendants for $7,000 compensatory damages for defamation; (3) against all defendants for $100,000 compensatory damages for civil conspiracy; (4) punitive damages against architect Hoon for $250,000; (5) punitive damages against Fairview South for $250,000; and (6) punitive damages against Hoon and White for $50,000.

FACTS

L. Ed Hoon, an architect with the firm of Hoon and White Architects, Inc., requested Pate, a general contractor, to submit a bid for construction of the "Sun Bank Monetary Triangle" on property owned by Fairview South, Inc., in Stuart, Florida. Pate was one of six prequalified contractors asked to submit a bid.

The written bid instructions supplied to the contractors stated an intent to award the bid to the lowest bidder, as well as a reservation of rights to reject any bid for any reason. The instructions provided:

Owner intends to award construction to the lowest responsible bidder qualified by experience and who possesses adequate plant, equipment, and supervisory *425 personnel to complete the contract, and who is financially secure.
* * * * * *
Owner reserves right to reject any or all bids for whatever reason he may deem necessary for his best interest, and to waive any or all formalities in regard to acceptance or rejection of any bid.

Six contractors submitted bids on the project. Subsequently, bid opening for the contractors was held and it was determined that Pate presented the lowest bid, in the amount of $3,720,913. However, Maddox Construction, the second lowest bidder at $3,850,000, was awarded the construction contract by Fairview South.

The bid form contained in the specifications required a listing of the identities of five major subcontractors and the dollar amount of these subcontracts. Pate's bid form failed to disclose the identities of two of the major subcontractors and failed to list the estimated charges of any of the subcontractors.

THE MAIN APPEAL

The owner and architects assert on appeal that there is no legal or factual basis for any of the claims of Pate. They assert that all of Pate's claims arose out of the Stuart construction project and the failure of the owner to award the construction contract to Pate as the lowest bidder. They claim that the trial court erred in failing to grant either their motion for judgment on the pleadings made at the start of trial or their subsequent motions for directed verdict on all claims. To determine these issues we must examine the legal and factual predicates for each of the claims.

BREACH OF CONTRACT

The count of the complaint entitled "Breach of Contract" stated:

32. The Defendants either directly or through their agent made express warranties to PATE that the low bidder would be entitled to construct THE PROJECT.
33. By pre-certifying PATE as a qualified and solicited bidder on the project, HOON impliedly guaranteed PATE, pursuant to the usage of trade and the course of dealing, that PATE would be the general contractor for construction of THE PROJECT were PATE's bid the lowest received.
34. The defendants breached their oral and written warranties and the terms of their contract with PATE.

The trial court denied defendants' motion for judgment on the pleadings and for directed verdict on breach of contract and submitted the issue to the jury as a claim for breach of an "implied contract". Appellants initially assert that there was no contractual relationship, and hence, no cause of action could arise for breach of contract for the owner's failure to award a private construction contract to the lowest bidder.

In L. Lieby, Florida Construction Law Manual § 5.01 (2d ed. 1988), it is stated:

[T]he general rule in the case of private construction, as distinguished from construction for governmental bodies or agencies, is that the owner or contractor receiving the bid has the freedom to accept or reject it, whether it is high, low, or in between, responsive or non-responsive.

The Restatement (Second) of Contracts § 26(d) (1981), similarly states:

Invitation of bids or other offers. Even though terms are specified in detail, it is common for one party to request the other to make an offer. The words "Make me an offer" would normally indicate that no offer is being made, and other conduct such as the announcement of an auction may have similar effect. See § 28. A request for bids on a construction project is similar, even though the practice may be to accept the lowest bid conforming to specifications and other requirements.

Although citing no Florida cases involving private bidding, appellants rely on similar bidding cases involving government construction projects. In William A. Berbusse, Jr., Inc. v. North Broward Hosp. *426 Dist., 117 So.2d 550, 551 (Fla. 2d DCA 1960), the court held that no cause of action was stated where the defendant did not award the contract to the lowest bidder:

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Bluebook (online)
607 So. 2d 423, 1992 WL 211718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoon-v-pate-const-co-inc-fladistctapp-1992.