Northwest Disposal Co. v. Village of Fox Lake

456 N.E.2d 691, 119 Ill. App. 3d 546, 75 Ill. Dec. 8, 1983 Ill. App. LEXIS 2503
CourtAppellate Court of Illinois
DecidedNovember 10, 1983
Docket82-970
StatusPublished
Cited by5 cases

This text of 456 N.E.2d 691 (Northwest Disposal Co. v. Village of Fox Lake) 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
Northwest Disposal Co. v. Village of Fox Lake, 456 N.E.2d 691, 119 Ill. App. 3d 546, 75 Ill. Dec. 8, 1983 Ill. App. LEXIS 2503 (Ill. Ct. App. 1983).

Opinion

PRESIDING JUSTICE SEIDENFELD

delivered the opinion of the court:

Northwest Disposal Company, a partnership, and its individual partners (Northwest) sought a declaratory judgment and injunctive relief against the village of Fox Lake and its trustees. Northwest alleged in its amended complaint that although qualified and the lowest bidder, it was denied a contract for garbage disposal. Count I of the complaint sought to void the contract which the village entered into with a competitor as an alleged violation of its own ordinance; count II sought a mandatory injunction to award the contract to Northwest based on count I; and count III sought relief based upon deprivation of constitutional rights under 42 U.S.C. sec. 1983 (Supp. Ill 1979). On defendants’ motion, counts II and III were dismissed with language of appealability added to the order. Northwest appeals solely from the order dismissing count III.

In count III, Northwest alleged that it entered a sealed bid, in accordance with published notice, for a four-year contract for garbage pickup and disposal from the village and that it did so pursuant to the specifications obtained from the village. It alleged that its bid of $12,092.56 per month was lower than $13,520.70, the bid of H.O.D. Disposal, to whom the contract was awarded. The complaint further alleged that Northwest is a responsible bidder with extensive experience in the area and that it had complied with all of the specifications entitling it to the award under the Fox Lake ordinance which required that the contract be given to the “lowest responsible bidder.” It then alleged that H.O.D. was not the lowest responsible bidder and that the award therefore violated the plaintiff’s constitutional rights in that it denied a business opportunity to the plaintiff based on discriminatory practices; that it perpetuated a long-standing practice in the village by accommodating “friends” of the village, irrespective of whether or not they were the lowest responsible bidder; that the village failed to inquire into the ability of the plaintiffs; that it denied the right of the plaintiffs to address the board of trustees of the village on the subject matter of responsibility; and that it manipulated the rules of order for that purpose. Under the complaint Northwest sought $70,000 in compensatory damages and $1,000,000 in punitive damages against the village and its trustees and officers in their respective capacities.

I

Section 1983 of the United States Code Title 42 provides:

“Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress. ***” 42 U.S.C. sec. 1983 (Supp. Ill 1979).

In support of its claim under this section Northwest first alleges that the village violated its rights under the fourteenth amendment of the United States Constitution and similar provisions of the Illinois Constitution proscribing deprivation of property without due process of law. To prevail on a section 1983 claim Northwest was required first to establish that, based on State statutory provisions and customs, it possessed “a legitimate claim of entitlement” that was infringed by defendants. (Board of Regents v. Roth (1972), 408 U.S. 564, 577, 33 L. Ed. 2d 548, 561, 92 S. Ct. 2701, 2709.) In Roth the court noted that procedural due process under the fourteenth amendment does not create property interests but is a safeguard of the security of interests that a person has already acquired in specific benefits (Board of Regents v. Roth (1972), 408 U.S. 564, 577, 33 L. Ed. 2d 548, 561, 92 S. Ct. 2701, 2708-09), and further noted that an abstract need or desire or a unilateral expectation does not establish a “property interest in a benefit” (Board of Regents v. Roth (1972), 408 U.S. 564, 577, 33 L. Ed. 2d 548, 561, 92 S. Ct. 2701, 2709). In the present case, Northwest contends that the protected interest of which it was deprived was a property right to have the garbage disposal contract awarded in accordance with the requirements and specifications of the village’s ordinances and State law, particularly under the provision that the award shall be made to the “lowest responsible bidder” as set forth in the Fox Lake ordinance and the further provision that any contract entered into in violation of that provision would be held null and void.

There is, however, no property interest in the adherence by the village to the procedures outlined in the ordinance; if there is a protected interest, it must be found in the benefit, that is, the award of the contract. (Three Rivers Cablevision, Inc. v. City of Pittsburg (W.D. Pa. 1980), 502 F. Supp. 1118, 1128-29.) The Seventh Circuit Court of Appeals has held that if a State agency does not have laws requiring the award of a contract to the low bidder, or if the laws are not enforced because of “political considerations,” the constitution is not thereby violated. (LaFalce v. Houston (7th Cir. 1983), 712 F.2d 292, 294.) Although not in the context of a section 1983 claim, both the Illinois Supreme Court and the Seventh Circuit have held that parties dealing with a State agency have no legally protected property interest in bidding for the sale of goods and services to the State. The specification of a competitor’s product and the exclusion of another bidder does not infringe a property interest so as to entitle an unsuccessful bidder to a due process hearing to determine whether the State action in specifying a competitor’s product had a rational basis. See Coyne-Delany Co. v. Capital Development Board (7th Cir. 1980), 616 F.2d 341, 343; Polyvend, Inc. v. Puckorius (1979), 77 Ill. 2d 287, 294-96, appeal dismissed (1980), 444 U.S. 1062, 62 L. Ed. 2d 744, 100 S. Ct. 1001.

Northwest places its principal reliance on the case of Three Rivers Cablevision, Inc. v. City of Pittsburg (W.D. Pa. 1980), 502 F. Supp. 1118. In Three Rivers the district court concluded that under the fourteenth amendment a due process interest in benefits sought to be obtained in the awarding of a contract “may arise out of the very provisions regulating their disbursement.” 502 F. Supp. 1118,1129.

Thus, Three Rivers concluded that the interest of the lowest responsible bidder in compliance with the specifications to be awarded the contract was a property right and that the possessor was entitled to the nonarbitrary exercise of the city’s discretion in making the award; thus, the deprivation of the benefit in the protected property interest without due process could be an actionable wrong. (501 F. Supp.

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Bluebook (online)
456 N.E.2d 691, 119 Ill. App. 3d 546, 75 Ill. Dec. 8, 1983 Ill. App. LEXIS 2503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/northwest-disposal-co-v-village-of-fox-lake-illappct-1983.