Keefe-Shea Joint Venture v. City of Evanston

845 N.E.2d 689, 364 Ill. App. 3d 48, 300 Ill. Dec. 800
CourtAppellate Court of Illinois
DecidedDecember 27, 2005
Docket1-04-3180
StatusPublished
Cited by45 cases

This text of 845 N.E.2d 689 (Keefe-Shea Joint Venture v. City of Evanston) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keefe-Shea Joint Venture v. City of Evanston, 845 N.E.2d 689, 364 Ill. App. 3d 48, 300 Ill. Dec. 800 (Ill. Ct. App. 2005).

Opinion

JUSTICE HALL

delivered the opinion of the court:

This is the third appeal arising from a contract bidding dispute between the plaintiff, Keefe-Shea Joint Venture (Keefe-Shea), the defendant, the City of Evanston (Evanston), and the intervenor, DiPaolo Company (DiPaolo). Keefe-Shea appeals from an order of the circuit court of Cook County granting summary judgment to Evanston, denying Keefe-Shea’s motion for summary judgment, denying its request for a preliminary injunction, denying it leave to amend its complaint and terminating the litigation on the grounds of mootness.

On appeal, Keefe-Shea raises the following issues: (1) whether the circuit court erred when it denied Keefe-Shea’s motion for the entry of a preliminary injunction and failed to award the Phase VI-B contract to Keefe-Shea; (2) whether the circuit court erred when it granted Evanston’s cross-motion for summary judgment and denied KeefeShea’s motion for summary judgment; (3) whether the circuit court erred when it dismissed Keefe-Shea’s remaining claims as moot; and (4) whether the circuit court erred when it denied Keefe-Shea’s motion for leave to amend its complaint. The pertinent history of this litigation is set forth below.

Background

In 1991, Evanston began a multiphase relief storm sewer project. The contract for Phase VI-B is at issue in this case. The contract was to be financed by a low interest rate loan from the Illinois Environmental Protection Agency (IEPA). In order to receive the loan, Evanston agreed to be bound by the rules and regulations promulgated by the IEPA in relation to the loans it makes.

In November 2000, Evanston solicited bids for Phase VI-B. The contract documents given to the prospective bidders were prepared by Evanston and contained specifications with which a prospective bidder would be required to comply in the event it was awarded the project. Pertinent to the issues in this appeal was the requirement that the bidder use minority and/or women-owned businesses (MBE/WBE) to perform no less than 15% of the awarded contract. With regard to the MBE/WBE participation, Evanston’s contract documents provided that if the bidder was unable to achieve the required MBE/WBE participation, the bidder could seek a waiver or modification of the utilization percentage by submitting a waiver request.

Both Keefe-Shea and DiPaolo submitted bids for the contract. Following a hearing, the Evanston city council voted to award the Phase VI-B contract to DiPaolo.

Court Proceedings Relating to First Appeal

On March 27, 2001, Keefe-Shea filed suit against Evanston, alleging that Evanston was required by law and its own ordinances to award the contract to the lowest responsible bidder. The complaint further alleged that DiPaolo was not the lowest responsible bidder due, inter alia, to its failure to comply with required procedure to obtain a MBE/WBE participation waiver. On April 20, 2001, DiPaolo was granted leave to intervene as a defendant. In its second amended complaint, filed on April 20, 2001, Keefe-Shea sought temporary and permanent injunctive relief to prevent Evanston from proceeding on the Phase VI-B project with DiPaolo, an order declaring that KeefeShea was the lowest responsible bidder on the project and a mandatory injunction requiring Evanston to enter into a contract for Phase VI-B with Keefe-Shea.

On May 7, 2001, a hearing commenced on Keefe-Shea’s motion for a preliminary injunction. On May 11, 2001, at the close of KeefeShea’s case, the circuit court granted the motions of Evanston and DiPaolo for a directed finding pursuant to section 2 — 1110 of the Code of Civil Procedure (the Code) (735 ILCS 5/2 — 1110 (West 2000)). KeefeShea filed a timely interlocutory appeal pursuant to Rule 307(a)(1) (188 Ill. 2d R. 307(a)(1)).

On August 29, 2001, this court vacated the circuit court’s order granting the section 2 — 1110 motions and denying Keefe-Shea a preliminary injunction. Keefe-Shea Joint Venture, Inc. v. City of Evanston, No. 1 — 01—2034 (2001) (unpublished order under Supreme Court Rule 23 (166 Ill. 2d R. 23)). The case was remanded to the circuit court with instructions to the circuit court to make specific findings of fact and conclusions of law and to set forth the reasons for its determinations as to each of the elements necessary for the granting of a preliminary injunction.

Court Proceedings Related to Second Appeal

On November 20, 2001, the circuit court issued its written opinion denying the motion for a preliminary injunction. Keefe-Shea filed an interlocutory appeal from that denial.

In the second appeal, this court rejected the circuit court’s determination that Keefe-Shea had not established a prima facie case as to the elements of irreparable harm and an inadequate remedy at law. This court held that an unsuccessful bidder may establish the element of irreparable harm by evidence that it was denied the right to participate in a fair bidding process and that the harm to bidders and the public alike would continue unabated unless the governmental body was enjoined from maintaining an unfair bidding process. We concluded that Keefe-Shea had established a prima facie case that Evanston had not awarded the contract to the lowest, responsive, responsible bidder based on DiPaolo’s failure to comply with the MBE/ WBE waiver requirements. As a result, Keefe-Shea had no adequate remedy at law. Keefe-Shea Joint Venture v. City of Evanston, 332 Ill. App. 3d 163, 175-77, 773 N.E.2d 1155 (2002).

Noting that the purpose of a preliminary injunction is to preserve the status quo pending a decision on the merits, this court stated as follows:

“We conclude that the record presents a prima facie case that [Keefe-Shea] would suffer the greater hardship if the preliminary injunction was denied and, therefore, a preliminary injunction is necessary in order to preserve the status quo. This determination is based upon the record before us and does not and cannot consider any evidence the defendants may present about the hardship to the citizens of Evanston from the delay in constructing the relief storm sewer project.” Keefe-Shea Joint Venture, 332 Ill. App. 3d at 178.

This court reversed the denial of the preliminary injunction and remanded the case “for a continuation of the hearing and the presentation of evidence on behalf of Evanston and DiPaolo.” Keefe-Shea Joint Venture, 332 Ill. App. 3d at 178.

Court Proceedings Related to Present Appeal

This court’s mandate was filed in the circuit court on November 4, 2002. On January 2, 2003, the circuit court granted Keefe-Shea’s motion to reopen limited discovery. On March 11, 2003, the circuit court granted Keefe-Shea’s motion to compel compliance with all outstanding discovery. On May 19, 2003, Keefe-Shea filed a motion for leave to file a third amended complaint. The proposed complaint added a count seeking a declaration that the Phase VI-B contract between Evanston and DiPaolo was null and void. On June 19, 2003, the circuit court granted Keefe-Shea leave to file its third amended complaint. On July 18, 2003, DiPaolo filed its answer, affirmative defenses and a counterclaim for declaratory judgment.

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Bluebook (online)
845 N.E.2d 689, 364 Ill. App. 3d 48, 300 Ill. Dec. 800, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keefe-shea-joint-venture-v-city-of-evanston-illappct-2005.