L & H SANITATION, INC. v. Lake City Sanitation, Inc.

585 F. Supp. 120, 1984 U.S. Dist. LEXIS 18939
CourtDistrict Court, E.D. Arkansas
DecidedMarch 2, 1984
DocketB-C-82-93
StatusPublished
Cited by12 cases

This text of 585 F. Supp. 120 (L & H SANITATION, INC. v. Lake City Sanitation, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L & H SANITATION, INC. v. Lake City Sanitation, Inc., 585 F. Supp. 120, 1984 U.S. Dist. LEXIS 18939 (E.D. Ark. 1984).

Opinion

ORDER

EISELE, Chief Judge.

There remains in this case a single claim founded on federal jurisdiction, and it is the subject of a pending motion to dismiss. For the reasons stated below, the motion will be granted.

The following facts appear to be undisputed by all parties. In 1981, the city of Heber Springs was notified by the State of Arkansas that it would have to close its city dump for pollution reasons no later than late spring or early summer of 1982. In late fall of 1981 city and county officials met with officials from Lake City Sanitation (“Lake City”) to discuss the possibility of franchising the waste collection service to Lake City. This meeting was apparently held at the request of Lake City. Lake City subsequently prepared a proposal for the city officials, while the city officials, on the other hand, appointed a committee to recommend a solution for the solid waste disposal problem facing the city. Sometime after being formed, the committee considered Lake City’s proposal, but decided that it would be better under the circumstances to award the contract for waste collection after soliciting bids. A notice for bids was advertised on December 9, 1981, stating as follows:

NOTICE FOR BIDS
The Mayor of the City of Heber Springs, Cleburne County, Arkansas is accepting bids on a contract beginning December 9th, 1981 at 9:00 a.m. through December 16th, 1981 at 12:00 p.m.
The Contract will grant a franchise to a person, firm, or corporation for collection, transportation and disposal of solid waste within the City.
A copy of the Contract and bidding instructions is available at the Office of the Mayor, Municipal Building, Heber Springs, Cleburne County, Arkansas. The City reserves the right to refuse any, all, or any and all bids.

Plaintiff L & H Sanitation (“L & H”) submitted its bid on December 16, 1981, as a corporation although it did not file its articles of incorporation with the Arkansas Secretary of State until January 4, 1982.

The city received two bids for the waste collection franchise, one from Lake City and one from L & H. After opening the two bids, the mayor and the city attorney studied them. The city then apparently decided not to make any immediate decision on the award, although L & H had submitted the lower bid.

On January 6, 1982, a representative of the Arkansas Department of Pollution Control and Ecology, Mr. Jim Beardon, attended a meeting with city officials. Officials of Lake City were also invited to, and did, attend that meeting. Apparently officials of L & H were not invited and, indeed, according to L & H, its officials were refused entry into the meeting. At the meeting the city awarded the waste collection franchise to Lake City in return for Lake City’s agreeing to modify its bid to give city residents the option of having Lake City haul their waste or hauling it themselves to the landfill at no charge.

The city argues that the award of the waste collection contract was made in a manner that was not arbitrary and capricious. It supports its argument by contending that it had to close its city dump within six to eight months and therefore needed quickly to put into operation an alternative waste-collection and disposal system. In selecting Lake City as the successful bidder, the city claims it took into account that: (1) Lake City had been operating a sanitation service since April of *122 1981, while L & H was just being formed as a corporation and had no experience in operating a sanitation service; (2) L & H made its contract absolutely contingent on its being able to secure a landfill site and get it approved by the EPA, while Lake City required no such contingency as to its bid since it had EPA-approved landfill sites available for its use; (3) L & H was not incorporated' at the time it submitted its bid and could have reneged on the contract, while Lake City was a viable business corporation and liable for its contracts; and (4) although L & H submitted the lower bid, in light of the above factors and the concession made by Lake City to allow residents to haul their own waste to Lake City’s landfill at no expense, the city believed that Lake City offered a better value for the dollar, and therefore was the lowest responsible bidder.

The plaintiff L & H claims that the award was a “sweetheart deal” in that the city from late fall 1981 had, essentially in conspiracy with Lake City, predetermined that Lake City, one of whose principal owners was the brother-in-law of a member of the city council, would receive the contract. L & H states that the following evidence will support such allegations: First, Lake City and city officials met and discussed a possible contract before bids were solicited. Second, only one week, as opposed to a customary three, was allowed in which to submit bids, and the bid notice itself was much less detailed than usual bid notices set out by the city. Third, L & H had difficulty obtaining bidding instructions and contract forms from the city. Fourth, the sample contract it was given by the city had attached to the back a draft contract of what appeared to be the bid of Lake City which should not have even been opened by that date. Fifth, after both bids were opened the mayor announced that both bids would be rejected, ostensibly because L & H had, surprisingly, submitted the lower bid. Sixth, the contract was awarded at a special private meeting to which Lake City was invited, and attended, while L & H was not invited. Indeed, L & H states that when it did find out about the meeting it attempted to join in but was confronted by a locked door and told to leave by the mayor.

As the Court stated in its Memorandum entered on October 19, 1982, there is but a limited ground of federal jurisdiction potentially remaining in this case, and that is, whether under 42 U.S.C. § 1983 and the Fourteenth Amendment the plaintiff can sustain a cause of action on the ground that the city through its officials acting in concert with Lake City deprived L & H of a protected property interest by failing to follow its own procedures and by awarding the waste collection contract to Lake City in an arbitrary and capricious manner, and also whether the defendants denied L & H the equal protection of the laws by awarding the contract to Lake City in an arbitrary and capricious manner.

In order to establish a Fourteenth Amendment claim for a denial of due process, the plaintiff must first demonstrate the deprivation of a protected property or liberty interest. Board of Regents of State Colleges v. Roth, 408 U.S. 564, 569, 92 S.Ct. 2701, 2705, 33 L.Ed.2d 548 (1972). Once such an interest has been established, the issue becomes whether the plaintiff received the process that was due. Morrissey v. Brewer, 408 U.S. 471, 481, 92 S.Ct. 2593, 2600, 33 L.Ed.2d 484 (1972).

In the ease at bar, L & H claims that it was deprived of a protected property interest in not being awarded the sanitation contract.

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Bluebook (online)
585 F. Supp. 120, 1984 U.S. Dist. LEXIS 18939, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-h-sanitation-inc-v-lake-city-sanitation-inc-ared-1984.