McIntosh Road Materials Co. v. Woolworth

74 A.2d 384, 365 Pa. 190
CourtSupreme Court of Pennsylvania
DecidedJune 26, 1950
DocketAppeals, Nos. 5 to 8
StatusPublished
Cited by37 cases

This text of 74 A.2d 384 (McIntosh Road Materials Co. v. Woolworth) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McIntosh Road Materials Co. v. Woolworth, 74 A.2d 384, 365 Pa. 190 (Pa. 1950).

Opinions

Opinion by

Mr. Justice Jones,

This matter is before us on separate appeals by the respective plaintiffs and on cross appeals by the Commonwealth acting by its administrative and fiscal officers named as defendants. The appellant plaintiffs complain of the lower court’s refusal of their prayers for an injunction to restrain the defendants from entering into or acceding to any contracts for the furnishing and applying of bituminous materials in the maintenance and repair of State highways (for a specified period) other than as awarded to the plaintiffs and five other successful bidders by the Secretary of Property and Supplies on or about March 1, 1950; the plaintiffs [194]*194also complain of the lower court’s enjoining of the defendants from proceeding to effectuate the contracts so awarded the plaintiffs, — action which no one sought or requested. On the cross appeals, the Commonwealth assigns for error the action of the court below in declaring illegal, null and void the award of contracts for the furnishing of the specified materials and the performance of the correlative work which the Secretary of Property and Supplies attempted to make on March 29, 1950.

The questions involved relate in the main to the legal effect of the learned chancellor’s supportable findings which received the approval of the court en banc and the legal conclusions properly to be drawn therefrom. The following is the factual situation giving- rise to the controversy.

On January 18, 1950, the Department of Property and Supplies, acting as the purchasing agent for the Department of Highways,1 invited bids on proposal forms prepared and furnished by the Secretary of Property and Supplies for certain specified bituminous materials and work in' connection therewith for use in the maintenance and resurfacing of State highways in the eleven highway districts of the State during the contract year of April 1, 1950, to March 31, 1951. The bids were sought on alternative bases under three numbered schedules, viz., Schedule 1. for the furnishing of the desired materials, Schedule 2. for applying them and Schedule 3. for furnishing and applying the specified materials. In the fore part of the proposal form, it was stated that in considering the “bids and award of contracts, the right is reserved, by the Commonwealth, to determine the awards to the best interests of the Commonwealth for either; Schedule 1, . . . Sched[195]*195ule 2 . . . .or Schedule 3 ... or any combination of bids for Schedules 1, 2, and 3 . . .” (Emphasis supplied). The proposal form stipulated that bidders under Schedule 1 “. . . shall be liable for car service, track storage, and truck transport layover charges, except in such cases wherein the layover is caused by weather conditions or due to instructions issued by representatives of the Department of Highways” and it further provided that “The successful bidder shall be liable for demurrage only in such cases where demurrage results in the contractor having not complied: with shipping instructions issued by the Department of Highways” (Emphasis supplied). That is to say, — on materials for which bids under Schedule 1 were accepted, the Commonwealth would assume a contingent liability for car service, track storage or truck transport layover and demurrage charges. Under Schedule 2, the proposal declared that “the successful bidder shall not be liable for car service, track storage or., .truck transport layover charges, and demurrage . . .” (Emphasis supplied). Wherefore, the Commonwealth by accepting bids under Schedule 2 would assume all contingent charges of the character specified. On the other, hand, Schedule 3 provided that “the successful bidder [thereunder] shall be liable for all car service, track storage or truck transport layover charges, and demurrage . ...” (Emphasis supplied), so that, for work and material accepted on bids under Schedule 3, the Commonwealth assumed no liability whatsoever for any additional contingent charges such as under Schedules 1 and 2.

The plaintiffs, as well as a number of other contractors, submitted bids pursuant to the “Invitation”. The one plaintiff, McIntosh Road Materials Co. (hereinafter referred to as McIntosh Company or McIntosh), submitted bids under Schedules 2 and 3; the other plaintiff, Dosch-King Company, Inc. (hereinafter referred to as Dosch-King), submitted bids only under Schedule 3. [196]*196The bids were in the form of contracts, fully and completely executed by the plaintiffs so as to be automatically binding on them upon acceptance thereof by the Secretary of Property and Supplies at any time within thirty days from the date set for the opening of all bids. Each of the plaintiffs had complied with the proposal requirement that its bid be accompanied by a certified or bank check for f10,000 as a guarantee of the bidder’s faithful effectuation of any award of contract made to it. The security deposit was to be retained by the Department of Property and Supplies in the case of a successful bidder until such bidder filed the required performance and labor and material bonds on the contract awarded to it; but it was to be returned promptly, as required by The Administrative Code, to any unsuccessful bidder following an award of contracts.

The bids were opened as stipulated by the proposal at 10, A. M. January 30, 1950; and, on March 1, 1950, which was within the thirty-day period during which the bids were to “remain firm”, the plaintiffs were severally notified by telegram from the Assistant Director of Purchases (Highways) in the Department of Property and Supplies that awards had been made to them on portions of their bids. The telegrams concluded with “Letter follows.” On March 2, 1950, the Secretary of Property and Supplies, acting by the Assistant Director of Purchases (Highways), sent each of the plaintiffs a letter stating that “Tentative award of contract . . . has been made to your company for furnishing and applying bituminous materials as listed on the attached schedule.” The letter further stated that “This award is in accordance with your bid submitted on Proposal-Index Number H-4619, bid opening date January 30, 1950”, and that “This tentative award is subject to your compliance with the provisions of the proposal form which require that you submit a performance bond and a labor and material bond, each in an amount equal to 50% of [197]*197the estimated total amount of the award.” On the same day, to wit, March 2,1950, the Department of Property and Supplies returned to the unsuccessful bidders their security bid checks. .

In the letters of March 2,1950, from the Department of Property and Supplies to the plaintiffs, the Secretary expressly engaged to forward to them later a copy of the release to the Field Offices of the Department of Highways which would “show all awards made on bids received on Proposal-Index Number H-4619”; and, on March 3,1950, the Department of Property and Supplies did send to each of the plaintiffs a copy of such release in the form of a letter from its Assistant Director of Purchases (Highways) addressed to “All Bureaus, Sections, Units, Sub-Units, District Engineers and Maintenance Superintendents” of the Highway Department. The letter specifically declared that “Contracts, for furnishing and applying bituminous materials for the period April 1, 1950, to March 31, 1951, have been awarded to: [seven named companies]” whereof the plaintiffs were two (Emphasis supplied).

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Bluebook (online)
74 A.2d 384, 365 Pa. 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcintosh-road-materials-co-v-woolworth-pa-1950.