In re the Appeal of Lord

25 Haw. 76, 1919 Haw. LEXIS 1
CourtHawaii Supreme Court
DecidedAugust 5, 1919
DocketNo. 1207
StatusPublished
Cited by1 cases

This text of 25 Haw. 76 (In re the Appeal of Lord) 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
In re the Appeal of Lord, 25 Haw. 76, 1919 Haw. LEXIS 1 (haw 1919).

Opinion

OPINION OF THE JUSTICES.

This is an appeal to the justices of the supreme court from a ruling or decision of the auditor of the Territory of Hawaii as provided for in section 1406 R. L. 1915. Pursuant to call for tenders duly published the board of supervisors of the City and County of Honolulu on March 4, 1919, received and opened bids for the construction of Avhat is designated as the first unit of the belt road, Koolaupoko district, Island of Oahu. Two bids were submitted, one being that of the appellant E. J. [78]*78Lord and the other of the Hawaiian Contracting Company, Limited. The board of supervisors took up the consideration of the bids and after sundry hearings the bid of the Hawaiian Contracting Company was rejected as irregular and not in conformity with the call for tenders, the form of proposal and the specifications relating thereto, and on April 1, 1919, the board awarded the contract to the appellant E. J. Lord, who hereinafter will be referred to as the contractor. Thereupon the contractor submitted an approved bond as required and the contract for the work was duly executed by the contractor and the City and County through its authorized officers. The contract was submitted to the auditor of the Territory for his certificate as provided for in section 1420 E. L. 1915, the purpose of which was to validate the contract by showing that funds Avere available sufficient to cover the amount required by the contract, and the auditor on June 24, 1919, attached to the contract his certificate to the effect that there Avas on hand and available the sum of $281,699.58 unexpended and unapplied. The contract for the work having been duly and regularly executed by the proper city and county official and the contractor the board of supervisors instructed the city and county engineer to notify the. contractor to commence work forthwith and the said engineer pursuant to said instruction did so notify the contractor on April 25, 1919; that after the receipt of said notification and on the 25th day of June, 1919, the contractor commenced work under said contract and on the 26th day of June, 1919, presented to the board of supervisors for approval his claim and demand in the amount of $78.19; that said claim was duly certified to and approved by the city and county engineer and duly approved by the board of supervisors at its meeting on June 26, 1919, and thereafter the contractor duly presented his claim to the auditor of [79]*79the Territory at the same time requesting a warrant therefor. The auditor disallowed and refused to approve said claim and refused to issue a warrant therefor and so notified the contractor by letter. From this decision of the auditor and his refusal to approve or allow the demand the contractor has appealed to the justices of this court.

In response to an order to show cause the auditor has appeared by his attorneys, and Mr. J. D. Mclnerny, a taxpayer of the City and County of Honolulu and a purchaser of territorial bonds sold for the purpose of raising funds to construct said belt road, ay as permitted to intervene. The territorial auditor interposed a motion to quash the order to shoAv cause and the summons issued, and Mr. Mclnerny, by his attorney, interposed a motion to dismiss the appeal. The first motion Avas tacitly withdrawn and the merits of the second will be determined later on in this opinion. Thereupon the respective parties agreed upon the issues involved herein, which are as follows:

“It is contended by the auditor and denied by the appellant. as follows:
“1. That the plans and specifications are so indefinite, uncertain and ambiguous as to defeat the purpose of calling for tenders.
“2. That the plans and specifications, together with the bids required to be filled up and filed, are so indefinite and uncertain as to render it impossible of ascertainment therefrom as to. Avkich of the competing bidders was the lowest bidder on the proposed Avork.
“3. That the fact that the sum of money now available for this belt’ road is not sufficient to complete the entire tAvelve miles (the first unit) of the road, renders it impossible to ascertain as to which of the competing bidders is the lowest bidder on that portion of the road capable of being built under existing available funds.
“I. That the said plans and specifications are such as [80]*80to enable a bidder to submit an unbalanced bid and while appearing to be the lowest bidder, he might so perform the work under and according to the said plans and specifications as to be in fact the highest bidder.
“5. That the time as attempted to be fixed by the said plans and specifications within which the contract is to be performed is so indefinite and uncertain as to prevent real competition between the bidders.
“6. That the plans and specifications and the call for tenders were illegally changed at a late hour by a private communication from the city and county engineer to two only of the bidders, which change was not publicly or otherwise advertised; and further the additional call for tenders and the change in the plans and specifications relating to the hauling of cement and/or iron as made by the letter of the city and county engineer dated Feb. 27, 1919, is so indefinite, uncertain and ambiguous as to defeat the purpose of the call for tenders and is calculated in itself and in connection with the original plans and specifications to mislead prospective bidders.
“7. That the contract incorporated in the plans and specifications, and as executed by the parties, requires the contractor to continue and complete the contract, notwithstanding any decision by the courts declaring the said contract illegal.
“8. That the contract executed by the parties does not conform in matters of substance to the plans and specifications, and to the advertised call for tenders.
“9. That the contract executed by the parties does not conform in matters of substance to the contract referred to in, and made a part of the plans and specifications and the call for tenders.
“10. That E. J. Lord to whom the cohtract was awarded, was not the lowest bidder.”

These issues were signed by all of the parties but Mr. Mclnemy filed additional and separate grounds for attack upon the legality of the contract between Lord and the City and County of Honolulu as follows:

“I. The specifications upon which bids for said con[81]*81tract were asked for are indefinite and uncertain in that (a) While time is made the essence of the contract by Section 33 of the general conditions of the specifications yet in the event of insufficient funds being available to complete the entire unit (which is the situation confronting us) the time of completion of such portion of the work as can be finished is left entirely to the discretion of the board of supervisors; (b) under said specifications, together with the form of hid prescribed, the contract might, contrary to law, be awarded .to the highest instead of the lowest bidder for the work actually done; (c) that under the advertisement for bids and the specifications the respective bidders were required to make bona fide bids for the removal of material and performance of work well known by.

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Related

In re the Appeal of Thompson
27 Haw. 221 (Hawaii Supreme Court, 1923)

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Bluebook (online)
25 Haw. 76, 1919 Haw. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-appeal-of-lord-haw-1919.