ISC Distributors, Inc. v. Trevor

903 P.2d 170, 273 Mont. 185, 52 State Rptr. 894, 1995 Mont. LEXIS 196
CourtMontana Supreme Court
DecidedAugust 28, 1995
Docket94-139
StatusPublished
Cited by21 cases

This text of 903 P.2d 170 (ISC Distributors, Inc. v. Trevor) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ISC Distributors, Inc. v. Trevor, 903 P.2d 170, 273 Mont. 185, 52 State Rptr. 894, 1995 Mont. LEXIS 196 (Mo. 1995).

Opinions

JUSTICE TRIEWEILER

delivered the Opinion of the Court.

The plaintiff, ISC Distributors, Inc., filed an amended complaint in the District Court for the Eighteenth Judicial District in Gallatin County, in which it alleged that the defendants, as employees of the State of Montana, violated its constitutional rights and acted negligently and in bad faith when they rejected its proposal for a microcomputer term contract. The District Court granted the defendants’ motion for summary judgment and dismissed the amended complaint. ISC appeals from the District Court’s order granting summary judgment. We affirm in part and reverse in part the judgment of the District Court.

The issues on appeal are:

1. Did the District Court err when it held that ISC had an insufficient property interest upon which to base a claim that it was denied due process of law in violation of 42 U.S.C. § 1983?

2. Did the District Court err when it held that ISC’s complaint of arbitrary and unfair treatment was insufficient to form the basis for a claim that it was denied equal protection of the law in violation of 42 U.S.C. § 1983?

3. Did the District Court err when it held that ISC could not state a claim for damages based on its allegation that the defendants acted negligently or in bad faith in their administration of the Montana Procurement Act?

[189]*189 FACTUAL BACKGROUND

The District Court’s order of summary judgment is based on the plaintiff’s uncontroverted complaint, plus additional material provided by the defendants in support of their motion for summary judgment. Since the allegations in the plaintiff’s complaint were assumed to be true by the District Court for purposes of its decision, we will assume them to be true for purposes of this opinion.

On July 26,1990, pursuant to the Montana Procurement Act found at §§ 18-4-101 to -407, MCA, the Montana Department of Administration (Department) issued a Request for Proposal for Microcomputer Term Contracts (RFP). It originally established a deadline of August 29, 1990, for responses, however later extended that deadline to September 12,1990, by “Addendum #1.” ISC prepared a proposal and submitted it prior to the September 12,1990, deadline.

ISC was not awarded a contract by the Department. In its complaint, it alleged that, contrary to the express provisions in the RFP, the defendants issued a second addendum on September 14, 1990, extending the deadline to October 9, 1990; accepted proposals from persons who failed to meet the September 12, 1990, deadline; and eventually awarded the contract to one or more of those persons.

ISC alleged that the RFP provided for contract awards to the first and second best applicant in two categories: (1) a category in which cost was to be the most heavily weighted factor; and (2) a category in which qualifications were to be the most heavily weighted factor. It alleged that based on the applicable criteria, it was either first or second in each category but that it was not awarded a contract because the defendants: (1) based their awards on criteria not included in the original RFP; (2) disclosed contents of plaintiff’s proposal to competing offerors; (3) failed to give the plaintiff fair and equal treatment with respect to discussion and revision of its proposals; and (4) applied evaluation criteria in an arbitrary and capricious manner.

Based on these allegations, ISC claimed a right to recover damages pursuant to 42 U.S.C. § 1983 for deprivation of its property right without due process, and for violation of its right to equal protection of the law in violation of the Fifth and Fourteenth Amendments to the United States Constitution. It also asserted claims for damages based on the alleged negligence and bad faith of the defendants during their administration of the Montana Procurement Act.

[190]*190The defendants moved to dismiss the original complaint pursuant to Rule 12(b)(6), M.R.Civ.P. Although that motion was briefed by both parties, it was not ruled upon by the District Court. The defendants submitted additional information, including an affidavit to which relevant portions of the RFP were attached, and moved for summary judgment. After considering briefs and arguments from both parties, the District Court granted the defendants’ motion for summary judgment and entered judgment for the defendants.

The District Court concluded that ISC had not stated a claim based on denial of its right to due process in violation of 42 U.S.C. § 1983 because under Montana law it had no property right which was protected. It concluded that ISC had not been denied equal protection in violation of § 1983 because, at most, it alleged a violation of the law, rather than an unfair or discriminatory classification under the law. Finally, the District Court concluded that ISC could not state a claim for damages based on the defendants’ alleged negligent or improper administration of the Montana Procurement Act because § 18-4-242, MCA, provides the exclusive remedy for violations of the Act, and claims for damages are not included.

ISSUE 1

Did the District Court err when it held that ISC had an insufficient property interest upon which to base a claim that it was denied due process of law in violation of 42 U.S.C. § 1983?

Defendants originally moved to dismiss the complaint pursuant to Rule 12(b)(6), M.R.Civ.P., for failure to state a claim for which relief may be granted. Although the motion was briefed by both parties, the District Court did not rule upon the defendants’ motion. In response to ISC’s amended complaint, defendants moved for summary judgment pursuant to Rule 56, M.R.Civ.P. The District Court granted that motion, but during the course of its opinion intermittently used language which suggested that its opinion was based on Rule 12(b)(6). A Rule 12(b)(6) order would assume all facts in the complaint to be true, but conclude that based on those facts, no legally cognizable claim has been stated. In this case, a resolution of ISC’s due process claim requires consideration of facts beyond those alleged in its complaint. It is necessary to consider the criteria set forth in the Department’s RFP 112-B. Therefore, we will treat the District Court’s decision as an order granting defendants’ motion for summary judgment.

We review a district court order granting summary judgment based on the same factors considered by the district court. Cooper v. [191]*191Sisters of Charity (1994), 265 Mont. 205, 207, 875 P.2d 352, 353. Summary judgment is not appropriate unless there are no issues of material fact and the moving party is entitled to judgment as a matter of law. Rule 56, M.R.Civ.P.

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ISC Distributors, Inc. v. Trevor
903 P.2d 170 (Montana Supreme Court, 1995)

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Bluebook (online)
903 P.2d 170, 273 Mont. 185, 52 State Rptr. 894, 1995 Mont. LEXIS 196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/isc-distributors-inc-v-trevor-mont-1995.