Marshall v. Pasadena Unified School District

15 Cal. Rptr. 3d 344, 119 Cal. App. 4th 1241
CourtCalifornia Court of Appeal
DecidedJuly 28, 2004
DocketB160520
StatusPublished
Cited by62 cases

This text of 15 Cal. Rptr. 3d 344 (Marshall v. Pasadena Unified School District) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall v. Pasadena Unified School District, 15 Cal. Rptr. 3d 344, 119 Cal. App. 4th 1241 (Cal. Ct. App. 2004).

Opinion

*1245 Opinion

KLEIN, P. J.

Defendant and appellant Pasadena Unified School District, a California public school district (the District), appeals a judgment granting a petition for writ of mandate filed by plaintiffs and respondents Paul G. Marshall, Jr. (Marshall) and PW Construction, Inc. (PW) (collectively, petitioners).

The District awarded a construction contract pursuant to an emergency resolution which enabled it to dispense with public bidding. The trial court set aside the District’s action, finding no emergency existed.

The essential issue presented is what constitutes an emergency which allows a school district to bypass regular competitive bidding procedures.

Public Contract Code section 20113 allows a school district in an “emergency” to “[m]ake a contract... for the performance of labor and furnishing of materials or supplies . . . without advertising for or inviting bids.” 1 Section 1102 states: “ ‘Emergency,’ as used in this code, means a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services.” (Italics added.) Because section 1102 defines “emergency” for purposes of the entire Public Contract Code, its definition must be read into section 20113.

Here, there was no “sudden, unexpected occurrence” that posed a clear and imminent danger requiring prompt action to protect life, health, property or essential public services. (§ 1102.) The purported emergency herein stemmed from the District’s decision to terminate a prior construction contract for its own convenience. That event did not constitute an emergency within the meaning of section 1102. The judgment is affirmed.

FACTUAL AND PROCEDURAL BACKGROUND

1. The original contract and its termination.

In September 2000, the District publicly advertised for bids for a project to modernize Longfellow Elementary School. The project called for (1) upgrading the electrical and plumbing systems and installing new heating, ventilation and air conditioning in a 92-year-old building, which contains 35 classrooms, and (2) constructing a new building to house six classrooms.

*1246 B.F. Construction, Inc. (BFCI) submitted a bid for the project and was determined to be the lowest responsible bidder. On November 29, 2000, the District entered into a $5,987,500 contract with BFCI to do the work.

On December 20, 2001, BFCI wrote a letter to the District stating, inter alia: “BFCI is concerned because the project is at a standstill, [f] One of the problems is that change orders are being ‘piecemealed’ and unilaterally reduced by [the construction manager]. Additionally, BFCI is not being compensated for delays, and was directed to proceed on change orders, for which it was not paid. [][]... [f] Due to the numerous changes, be advised that we are unable to proceed effectively after January 7, 2002. [][]... It is our opinion that this project should be terminated for convenience by the owner, redrawn, reengineered, and put out for rebid as a possible solution for [the District] to straighten out the balance of the project.”

On February 1, 2002, the District invoked its express contractual right to terminate its contract with BFCI for the convenience of the District.

2. The dispute between BFCI and the District over the terminated contract.

The contract between BFCI and the District provided that in the event of a termination for convenience, BFCI would be entitled to payment for “Work actually performed and in place as of the effective date of such termination . . . .” BFCI submitted a claim to the District seeking payment of about $1.7 million. The District disputed the claimed amount.

On April 9, 2002, BFCI submitted a formal claim to the District pursuant to Government Code section 910 et seq. On May 16, 2002, BFCI assigned its claim against the District to Marshall. Marshall had been the vice-president of BFCI and was now the president of PW, a general contractor.

On July 31, 2002, Marshall, as BFCI’s assignee, filed suit against the District. 2

3. Pursuant to an emergency resolution, the District awards a contract for completion of the work to Hayward.

On April 1, 2002, two months after the District terminated its contract with BFCI, the District’s Board of Education (Board) adopted an emergency resolution to award a contract for completion of the modernization project at Longfellow Elementary School to Hayward Construction Co. (Hayward).

*1247 The resolution included the following recitals: “WHEREAS, the Completion of the Project was scheduled for August 28, 2002 and is falling behind schedule everyday; and, [f] WHEREAS, the current Codes governing the Letting of Public Contracts requires a process that will add an estimated Sixty (60) to Ninety (90) days to Award a Contract to resume the work and follow through to completion of the Project at Longfellow; and, [][] WHEREAS, these delays represent a serious impediment to the District’s ability to make the necessary transition to appointing another General Contractor in a timely manner in order to attempt to bring the Project back to schedule and deliver the Project on time for the beginning of the 2002-03 School Year; and, [f] WHEREAS, the inability to utilize the modemized/new classrooms will impact instruction/curriculum, and the unfinished structures, open trenches and materials represent serious safety concerns, and, [][] NOW, THEREFORE, BE IT RESOLVED, that the Board of Education of [the District] [does] hereby authorize the Award of Contract M-020301/5363Y in the amount of $3,952,804.00 to Hayward Construction Co. for completion of the Phase I Modernization Project at Longfellow ... on [an] emergency basis without the formal Public Bid and Award process.”

The Los Angeles County Superintendent of Schools subsequently approved the emergency resolution awarding the contract to Hayward. (§20113, subd. (a).)

4. Marshall and PW bring a petition for writ of mandate to enjoin the District from making any payments to Hayward and to require the District to advertise publicly for bids to complete the work.

On June 3, 2002, Marshall and PW filed a petition for writ of mandate (Code Civ. Proc., § 1085), alleging the District’s award of the contract to Hayward was unlawful in that no “emergency” existed which would allow the District to avoid compliance with section 20111, subdivision (b), 3 and the District had failed to comply with all procedures necessary to enter into a contract on an emergency basis as set forth in section 22050. 4 Marshall and PW sought to preclude the District from making any payments to Hayward, *1248

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15 Cal. Rptr. 3d 344, 119 Cal. App. 4th 1241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-pasadena-unified-school-district-calctapp-2004.