Mitchell Business Equipment Co. v. Board of Education

246 A.2d 256, 251 Md. 150, 1968 Md. LEXIS 428
CourtCourt of Appeals of Maryland
DecidedOctober 14, 1968
DocketNo. 352
StatusPublished
Cited by1 cases

This text of 246 A.2d 256 (Mitchell Business Equipment Co. v. Board of Education) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mitchell Business Equipment Co. v. Board of Education, 246 A.2d 256, 251 Md. 150, 1968 Md. LEXIS 428 (Md. 1968).

Opinion

Barnes, J.,

delivered the opinion of the Court.

Mitchell Business Equipment Company, Inc., a Maryland corporation (Mitchell), a franchised dealer of Underwood, Remington, R. C. Allen and Adler typewriters in St. Mary’s County, filed a petition in the Circuit Court for St. Mary’s County on July 31, 1967, against the Board of Education for St. Mary’s County (the Board) for an order of that court restraining the Board from executing a contract with Free State Business Machines, Inc. (Free State) for the purchase of certain Royal typewriters in accordance with the acceptance of Free State’s bid by the Board on July 25, 1967. The Circuit Court (Dorsey, J.) filed a written opinion indicating that the Board had acted properly and in accordance with the provisions of Code (1957) Article 77, Section 75 and on September 18, 1967, filed an order dismissing the petition, as amended, and requiring the petitioner, Mitchell, to pay the costs. Mitchell filed a timely appeal from this order. We are of the opinion that the Chancellor correctly decided the case and will affirm the order of the lower court.

[152]*152Free State is a Maryland corporation, an authorized agent of Royal typewriters for St. Mary’s County, as well as Charles County and the southern portion of Prince George’s County. It sells no other make or brand of new typewriter.

In December 1966 or January 1967, the Board began negotiations with Free State for the purchase of Royal typewriters to be used for the instruction of pupils in the public schools of St. Mary’s County, and communicated with Mitchell in regard to prices of certain typewriters sold by it. Free State submitted a formal bid for 210 new Royal typewriters and the Board, at that time considering the typewriters as “instructional material,” decided that it was not necessary to follow the procedures of Code (1957) Article 77, Section 75 requiring advertisements for bids. Accordingly the contract was awarded to Free State for $40,477.00 less a trade-in allowance of $8,477.50, or a net cash payment by the Board of $32,029.50. When Mitchell objected to the awarding of the contract to Free State, the Board, after consultation with the State Board of Education and the office of the Attorney General, cancelled the contract with Free State, and, in accordance with the provisions of Article 77, Section 75, advertised for bids to be opened at 2:00 p.m. (EDST) on July 14, 1967. The Board in its specifications for the contract designated specific models of Royal typewriters, pursuant to the provision of Section 75 which authorizes the Board to name “the particular make, kind or brand of the article or articles to be purchased.”

Free State’s bid, submitted on July 10, 1967 was, in relevant part, as follows:

Item
No.
1
2
3
4
Quantity Unit Price
$159.50 259.50 330.00
Item
Royal Model 440 140
Royal Model 550 62
Royal Model 660 4
Royal Model 551 (293.50) 4
and Key punch training tandem (40.00) 333.50
Total price of all items Trade-in allowance Sub-Total
Total Price
$22,330.00
16,089.00
1,320.00
1,334.00
$41,073.00
7,253.09
$33,819.91

[153]*153Attached to the bid was a list of serial numbers of typewriters to be traded in.

By four separate bids all dated July 12, 1967, Mitchell presented bids for Adler, Remington, R. C. Allen and Olivetti Underwood typewriters. In all bids, the trade-in allowance was $7,040.00.

The Adler bid submitted for Item 1, the Adler U20 with a unit price of $129.25, a total of $18,095.00; for Item 2, the Adler E21S with a unit price of $243.93, a total of $15,123.66; for Item 3 the Adler E21C with a unit price of $336.15, a total of $1,344.60; making a total of these three items of $34,563.26. There was no bid on Item 4.

In the Remington bid, the Remington Standard was submitted for Item 1 at a unit price of $150.00, a total price of $21,000.00. In regard to Items 2 and 3 the entry was “No bid — delivery uncertain”; and the entry for Item 4 was “no bid.”

In the R. C. Allen bid, the R. C. Allen Model Bll was submitted at a unit price of $150.00, a total price of $21,000.00. In regard to Items 2, 3 and 4, the entry was “no bid.”

In the Olivetti Underwood bid, the Olivetti Underwood TM5, with service, was submitted at a unit price of $112.00 for the typewriter and $20.00 for service, a total unit price of $132.00, and a total price of $18,480.00; the Electric Underwood, Model 700 was submitted for Item 2 at a unit price of $259.00, a total price of $16,058.00; the Electric Underwood, Model 702 was submitted for Item 3 at a unit price of $310.00, a total price of $1,240.00; and, in regard to Item 4, no bid was submitted. The total price of all items on the Olivetti Underwood bid was $35,778.00.

On all of the Mitchell bids the following notation was added : “Enclosed Trade-in allowances may be used toward any or all of the above items.” As already indicated, the trade-in allowance on all Mitchell bids was $7,040.00.

There was some testimony that although the net amount of the bid submitted on the Royal contract was in excess of the net amounts on the Mitchell bids, the established future allowances which would be made for used Royal typewriters as compared with similar allowances which would be made for the [154]*154other brands would ultimately result in a lower cost of typewriters to the County.

There was no allegation in the petition and there was no contention made in the lower court or before us that the Board was guilty of actual fraud or that it acted corruptly in this matter.

The principal legal question presented to us for decision is whether the typewriters in question fall under the provisions of Article 77, Section 146 as “materials of instruction” or under Article 77, Section 75 as “equipment of any sort.” In order to determine this question it is necessary to consider the provisions of the two sections involved.

Section 75 provides as follows:

“Where the cost of any school building, improvement, supplies or equipment of any sort exceeds the sum of five thousand dollars, the board of education in each county shall advertise for bids in one or more newspapers published in their respective counties, publication of such advertisement to appear at least one week prior to the date on which bids are to be filed, and the contract for any such school building, improvements, supplies or other equipment shall be awarded to the lowest responsible bidder, conforming to specifications,

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Related

Early v. State
282 A.2d 154 (Court of Special Appeals of Maryland, 1971)

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Bluebook (online)
246 A.2d 256, 251 Md. 150, 1968 Md. LEXIS 428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-business-equipment-co-v-board-of-education-md-1968.