Inbound v. Dept. of Forestry

252 P.3d 336, 241 Or. App. 619
CourtCourt of Appeals of Oregon
DecidedMarch 23, 2011
Docket08C18347 A140921
StatusPublished
Cited by3 cases

This text of 252 P.3d 336 (Inbound v. Dept. of Forestry) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inbound v. Dept. of Forestry, 252 P.3d 336, 241 Or. App. 619 (Or. Ct. App. 2011).

Opinion

252 P.3d 336 (2011)
241 Or. App. 619

INBOUND, LLC, an Oregon limited liability company, Plaintiff-Respondent,
v.
DEPARTMENT OF FORESTRY, Defendant-Appellant.

08C18347; A140921.

Court of Appeals of Oregon.

Argued and Submitted June 15, 2010.
Decided March 23, 2011.

Jeremy C. Rice, Assistant Attorney General, argued the cause for appellant. With him on the briefs were John R. Kroger, Attorney General, and Jerome Lidz, Solicitor General.

Kevin J. Jacoby, Salem, argued the cause for respondent. With him on the brief was Paul R.J. Connolly.

Before ORTEGA, Presiding Judge, and ROSENBLUM, Judge, and LANDAU, Judge pro tempore.[*]

LANDAU, J., Pro Tempore.

Plaintiff entered into a contract with defendant, the Oregon Department of Forestry (ODF), to provide firefighters for one fire season, with the possibility of extensions. ODF later informed plaintiff that it would not extend the contract to another season, however, based on the fact that plaintiff's rate exceeded a previously undisclosed "price cap" for the firefighting work. Plaintiff initiated this action for breach of contract and for judicial review, contending that, among other things, ODF violated public contracting law in failing to disclose the existence of a price cap as a condition for contract renewal. Plaintiff moved for summary judgment on the claim for judicial review; ODF cross-moved for summary judgment on the same claim on the twin grounds that the petition had not been timely filed and that, in any event, ODF was not obligated to disclose the price cap. The trial court granted plaintiff's *337 motion for summary judgment, denied ODF's, and awarded plaintiff attorney fees. ODF now appeals, arguing that the trial court erred in holding that plaintiff's claims were timely, that ODF violated the public contracting law, and that plaintiff was entitled to attorney fees. We affirm, writing only to address ODF's contention that the petition had not been timely filed.

The relevant facts are undisputed. Every year, ODF retains the services of dozens of 20-person fire-fighting crews for dispatch to wildfires on state, federal, and private lands. It uses public procurement processes to secure those fire-fighting services. During the relevant time period, ODF applied the procurement rules set out under the Oregon Public Contracting Code, ORS chapters 279A and 279B.

In May 2007, ODF issued a request for proposals (RFP) to procure fire crews from various contractors for the 2007 fire season. The RFP provided that the agreement would be a one-year contract, with the possibility of two one-year extensions. Along with other necessary documentation, the RFP required interested contractors to provide a price quote for the 2007 fire season, as well as price quotes for the two potential extensions covering the 2008 and 2009 fire seasons. At that time, ODF had set the maximum hourly rate for the 2007 season at $45 per person/per hour. The RFP, however, said nothing about price caps for the 2008 and 2009 seasons, above which ODF would summarily reject the proposed extensions.

Section G of the RFP set out the provisions governing the procedure for granting extensions of the term of the agreement. Specifically, it provided:

"G.1.1 RENEWAL NOTICE. If ODF intends to extend the Agreement with the CONTRACTOR, ODF will notify the CONTRACTOR in writing of ODF's intent to extend the Agreement (`Renewal Notice') at least 30 (thirty) days prior to the expiration of the current term of the Agreement. If the CONTRACTOR wants to accept the extension, the CONTRACTOR must sign and return the Renewal Notice to ODF by the time specified in the Renewal Notice. If the CONTRACTOR does not return the signed Renewal Notice by the specified time, the Agreement shall expire according to its terms, unless earlier terminated.
"* * * * *
"G.3.1 ODF may decide, at its sole option and discretion, whether to initiate any extension of the Agreement with the CONTRACTOR under Section G.1.1. The CONTRACTOR has no entitlement to any extension of the Agreement. * * *
"G.3.2 ONE MONTH EXTENSION OPTION. Notwithstanding anything to the contrary in this Section G, ODF State reserves the right, to be exercised in its sole discretion to extend, at the pricing establishing for the then-current term, the Agreement for a maximum of one (1) calendar month beyond any term. ODF shall notify CONTRACTOR in writing of the one-month extension prior to the expiration of the then-current term."

(Boldface, underscoring, and capitalization in original.) Additionally, the RFP provided that either ODF or a contractor could terminate the agreement "for the convenience of the terminating party" at any time, as long as that party gave five days' notice.[1]

Plaintiff submitted a proposal to ODF offering $45 per person/per hour for the 2007 season and $47.50 per person/per hour for the 2008 season (the 2009 season is not at issue in this case). In August 2007, ODF accepted plaintiff's proposal, and the parties executed the 2007 Interagency Firefighting Crew Agreement (agreement), which incorporated all of the RFP provisions, including Section G detailed above. The agreement was set to terminate on September 30, 2008, unless ODF exercised its option and offered plaintiff a one-year extension.

On January 18, 2008, ODF sent plaintiff a letter stating that, because plaintiff's hourly rate for the 2008 season exceeded $45, it was not only denying plaintiff the one-year contractual *338 extension for the 2008 season, but also terminating the current agreement. The letter provided that the application of a $45 price cap was applied to all fire crew contracts after analysis of what price was in the "best interest[s]" of ODF and its cooperating agencies.

On February 12, 2008, ODF notified plaintiff that it was rescinding its termination and invoking the one-month extension provision under Section G.3.2 of the RFP, extending the agreement until October 31, 2008. Specifically, the letter stated:

"ODF hereby rescinds its termination of the Agreement and reinstates your company for the purposes of allowing it to provide services for the 2008 fire season. * * * The terms and conditions of the Agreement will remain in full force and effect except as follows:
"Extension of Term of Agreement: The term of the Agreement shall be extended to and include October 31, 2008."

(Underscoring in original.) The letter did not mention the potential one-year extensions provided for in Section G.1.1 of the RFP.

In April 2008, plaintiff e-mailed certain ODF employees in an attempt to ascertain the status of year-long extension awards— specifically, whether other companies had been awarded extensions already and whether plaintiff would be awarded one as well. In one particular e-mail response, sent on May 2, 2008, Burke Mayer, a procurement officer for ODF, told plaintiff that "[d]ecisions regarding further extension of the 2007 [agreement], if any, past the October 2008 termination date ha[ve] not be[en] addressed."

On June 9, 2008, the extension agreement that reinstated the 2007 agreement and extended it until October 2008 was signed. On June 13, 2008, plaintiff received an e-mail from Steven Johnson, an ODF Compliance Specialist, which stated:

"To all Crew Contractors,

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Cite This Page — Counsel Stack

Bluebook (online)
252 P.3d 336, 241 Or. App. 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inbound-v-dept-of-forestry-orctapp-2011.