Jackson v. Union-North United School Corp. Ex Rel. Board of School Trustees

582 N.E.2d 854, 1991 Ind. App. LEXIS 2153, 1991 WL 262424
CourtIndiana Court of Appeals
DecidedDecember 16, 1991
Docket46A03-9011-CV-508
StatusPublished
Cited by6 cases

This text of 582 N.E.2d 854 (Jackson v. Union-North United School Corp. Ex Rel. Board of School Trustees) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. Union-North United School Corp. Ex Rel. Board of School Trustees, 582 N.E.2d 854, 1991 Ind. App. LEXIS 2153, 1991 WL 262424 (Ind. Ct. App. 1991).

Opinions

GARRARD, Judge.

I. Facts and Procedural History

This is an appeal from the LaPorte Circuit Court challenging the trial court’s grant of summary judgment in favor of a school corporation and school bus drivers. The trial court ruled that a school corporation’s renegotiation of six transportation contracts did not violate the public bidding statutes because the renegotiation was expressly authorized under IC 20-9.1-2-13. We reverse.

Appellant Jeffrey L. Jackson (Jackson) challenged the legality of six school bus route contracts between Appellee Union-North United School Corporation (School Corporation) and six school bus drivers, Appellees Dennis E. Bettcher, Robert H. Albert, Robert D. Blount, Greg Huff, Dale L. Albert, and Ronnie R. McCartney (School Bus Drivers).

The School Corporation solicited public bids for bus route contracts. The contracts were for the period encompassing the 1989-90 through 1992-93 school years. On or about April 24,1989, the School Corporation received, opened, and tabulated bids for the transportation contracts. At the May 24, 1989 school board meeting the School Corporation accepted twenty bids, and awarded contracts to the successful bidders based on their respective bids. The School Corporation entered into an “Agreement of Understanding” at the May 24, 1989 school board meeting with those whose bids were accepted, and the agreement listed, among other items, the amount of an individual’s accepted bid and the route he or she was awarded. The agreement contemplated that a formal contract for the awarded routes would be executed at a later date.

On or about June 26, 1989, the formal school transportation contracts were submitted to the school board for the signatures of the individual board members. The twenty contracts were signed by the school board members. Six of the formal transportation contracts approved by the board were for greater amounts than listed in the agreements of understanding entered into at the May 24, 1989 board meeting.

The School Corporation, through its Superintendent, Dr. David L. Pruis, acknowledged that six of the original agreements had been renegotiated at some point between the May 24 award of the contracts and the June 26 signing of the contracts. [856]*856The School Corporation entered into an “Addendum to Contract” with the six school bus drivers which stated that a new and higher per diem rate was awarded to drivers who had expressed an intention to purchase new buses. The new buses did not contain greater seating capacities than the buses they replaced.

Jackson brought suit as a resident and taxpayer in the School Corporation’s township and county. He filed suit in the St. Joseph Superior Court on October 16, 1989, and, on the School Corporation’s motion for change of venue, the suit was transferred to and docketed in the LaPorte Circuit Court. Jackson sought to have the six contracts which were for higher rates than the originally accepted public bids declared illegal and void. He requested that the School Corporation be enjoined from spending any public funds on the contracts over and above the amounts of the bids accepted and the agreement signed on May 24,1989. Jackson claimed the total difference between the amount of the bids accepted and the contracts awarded was approximately $56,784.00.

Jackson alleged that the School Corporation and School Bus Drivers violated both the Indiana Open Door Law and the public bidding statutes. The School Corporation and the School Bus Drivers filed motions for summary judgment, claiming that Jackson’s Open Door claim had not been filed within the statutory time limit, and that the renegotiation of the transportation contracts was justified by the express provisions of IC 20-9.1-2-13 which allowed such renegotiation for the purchase of different equipment.

The trial court granted the School Corporation’s and the School Bus Drivers’ motions for summary judgment on both counts.

II. Issue

The sole issue on appeal is:

Whether the trial court erred in granting summary judgment in favor of the School Corporation and the School Bus Drivers by finding that IC 20-9.1-2-13 expressly allowed the renegotiation of the transportation contracts in this case for the purposes of purchasing new equipment (buses).1

III. Discussion and Decision

Jackson contends the trial court erred by ruling that IC 20-9.1-2-13 allows the School Corporation to renegotiate the School Bus Driver’s transportation contracts. We agree. Jackson is appealing from a trial court ruling granting summary judgment in favor of the School Corporation and the School Bus Drivers. We will reverse the grant of a summary judgment motion if the record discloses an unresolved issue of material fact or an incorrect application of the law to those facts. Jones v. City of Logansport (1982), Ind.App., 436 N.E.2d 1138, 1143. We find that the trial court has incorrectly applied the law to the facts of this case.

Jackson’s primary contention on appeal is that the renegotiated contracts hint of favoritism because they were privately renegotiated at higher amounts without notice to other prospective bidders just a few weeks after the School Corporation had publicly solicited, accepted, and awarded bids. He urges that the renegotiation violates the public bidding statutes that have been established by the legislature to govern the fair issuance of school transportation contracts. Specifically, we note that the School Corporation is required to give at least 10 days’ notice to the public prior to beginning negotiations for transportation contracts. IC 20-9.1-2-7. Otherwise, negotiations are not to occur. Id.

The School Corporation and the School Bus Drivers do not dispute that the contracts were renegotiated without notice to the public. However, they successfully alleged at the trial court level that by its express language IC 20-9.1-2-13 allowed [857]*857the renegotiation of the contracts for the purpose of acquiring different equipment. The statute provides:

Sec. 13. Transportation or Fleet Contracts, Change of Equipment. The governing body may require the school bus driver or fleet contractor to furnish equipment with greater seating capacity at any time. When a school bus driver or fleet contractor is required to furnish different equipment during the term of the contract, the contracting parties may mutually agree to the cancellation of the existing contract, and renegotiate a new contract for the balance of the term of the original contract. Action taken by a governing body under Section 12 of this chapter shall not preclude simultaneous exercise of authority under this Section.

IC 20-9.1-2-13.

Under the statutory language of IC 20-9.1-2-13, a contract must exist in order for renegotiation to occur. The trial court correctly found that a contract existed when the agreements of understanding were signed on May 24, 1989. In Indiana the written proposal of a public entity for work to be done, the written bid of a party to do the proposed work, and the written acceptance of such bid by the proper authorities, constitutes a contract to do the proposed work, even though a formal contract to do the work has not been executed. See Wiles v. Hoss (1887), 114 Ind. 371, 16 N.E. 800, 805.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pelak v. Indiana Industrial Services, Inc.
831 N.E.2d 765 (Indiana Court of Appeals, 2005)
Mid-States General & Mechanical Contracting Corp. v. Town of Goodland
811 N.E.2d 425 (Indiana Court of Appeals, 2004)
Cristiani v. Clark County, Indiana Solid Waste Management District
675 N.E.2d 715 (Indiana Court of Appeals, 1996)
Y.A. Ex Rel. Fleener v. Bayh
657 N.E.2d 410 (Indiana Court of Appeals, 1995)
Hilburt v. Town of Markleville
649 N.E.2d 1036 (Indiana Court of Appeals, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
582 N.E.2d 854, 1991 Ind. App. LEXIS 2153, 1991 WL 262424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-union-north-united-school-corp-ex-rel-board-of-school-trustees-indctapp-1991.