Ohio Bus Sales, Inc. v. Toledo Board of Education

610 N.E.2d 1164, 82 Ohio App. 3d 1, 1992 Ohio App. LEXIS 4007
CourtOhio Court of Appeals
DecidedAugust 7, 1992
DocketNo. L-91-303.
StatusPublished
Cited by18 cases

This text of 610 N.E.2d 1164 (Ohio Bus Sales, Inc. v. Toledo Board of Education) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Bus Sales, Inc. v. Toledo Board of Education, 610 N.E.2d 1164, 82 Ohio App. 3d 1, 1992 Ohio App. LEXIS 4007 (Ohio Ct. App. 1992).

Opinion

*3 Per Curiam.

This is an appeal from a judgment of the Lucas County Court of Common Pleas which granted summary judgment to plaintiff-appellee and cross-appellant Ohio Bus Sales, Inc. (“Ohio Bus”) on its request for a permanent injunction. Defendants-appellants and cross-appellees, Nollenberger Truck Center, Inc. (“NTC”) and Transportation Equipment Sales Corporation (“TES-CO”), appeal that judgment and assert the following assignment of error:

“The trial court erred by granting the motion for summary judgment of plaintiff Ohio Bus Sales and denying the motion for summary judgment of intervening defendants Nollenberger Truck Center and Transportation Equipment Sales Corporation.”

Ohio Bus raises a single assignment of error on cross-appeal:

“The trial court erred by not ruling that R.C. § 3327.08 violates the Equal Protection Provisions of the Ohio and United States Constitutions.”

On May 30, 1991, Ohio Bus filed a complaint in the Lucas Court of Common Pleas in which it named the Toledo Board of Education (“board”) and Lee Fisher, Attorney General of the state of Ohio, as defendants. Ohio Bus alleged that the board had advertised for bids for fifteen fifty-four passenger transit-type buses to be purchased by the board. Ohio Bus contended that despite the fact that its bid was the lowest responsible bid, the board voted to award the contract for the purchase of the fifteen buses to NTC (bus chassis supplier) and TESCO (bus body supplier). Ohio Bus asserted that the board had rejected its bid due to an alleged noncompliance with R.C. 3327.08. Ohio Bus requested a permanent injunction enjoining the board from entering into a contract with either NTC or TESCO. In addition, Ohio Bus asked the court to declare that the board’s acceptance of the NTC/TESCO bid was in violation of R.C. 3313.46 and was therefore null and void. Ohio Bus also requested that the court declare that it had complied with R.C. 3327.08 in the submission of its bids. In the alternative, Ohio Bus asked the trial court to declare that R.C. 3327.08 is unconstitutional because it violates the Equal Protection Clauses of both the United States and Ohio Constitutions.

NTC and TESCO were allowed to intervene as defendants in the proceedings below. On June 14, 1991, the board filed a motion for summary judgment. It argued that R.C. 3327.08 required the submission of “separate and independent” bids with “respect to the chassis and body type”; that Ohio Bus failed to submit separate bids as to the chassis and body type; and that this resulted in the rejection of the Ohio Bus bids. The board further argued that R.C. 3327.08 is not violative of the state and federal Equal Protection Clauses. The summary judgment motion was supported by, among other *4 things, the affidavit of David Decsman, Director of Transportation for the Toledo Public Schools; the minutes of the board meeting wherein Ohio Bus bids were rejected and those of NTC/TESCO were accepted; the specifications issued by the board for the furnishing of the school buses; and copies of the bids submitted by Ohio Bus, NTC and TESCO.

On June 14, 1991, Ohio Bus filed a motion for summary judgment, which was supported by the affidavit of John Blackford, sales representative for Ohio Bus. Subsequently, both the Attorney General of Ohio and NTC/TES-CO filed motions for summary judgment. Each summary judgment motion addressed the construction of R.C. 3327.08, the question of whether Ohio Bus had complied with R.C. 3327.08 in submitting its bids, the issue of whether the board had violated R.C. 3313.46(G) by not accepting the “lowest responsible bid,” and/or the constitutionality of R.C. 3327.08.

The relevant undisputed facts revealed in the materials filed in support of the various motions for summary judgment are as follows.

Ohio Bus distributes and sells school buses manufactured by the Bluebird Company (“Bluebird”). Bluebird manufactures and sells both bodies and chassis for transit-type buses. Due to the fact that no other manufacturer makes a body or a chassis which is compatible with those made by its company, Bluebird does not permit its distributors to sell its bodies and chassis separately. That is, Ohio Bus markets its buses as a complete unit. On the other hand, NTC and TESCO manufacture separate bus bodies or bus chassis that are assembled with the body or chassis of another manufacturer to make a complete bus.

In April 1991, the board advertised for bids for fifteen fifty-four passenger transit-type buses, inclusive of five buses with wheelchair lifts. Ohio Bus submitted four separate bids for the two types of buses. The forms used for the purpose of bidding were those specified by the board in its specifications manual. The Ohio Bus bids include two school bus chassis bid forms and two school bus body bid forms. However, each bid form contained a base price that encompassed the total cost of both a body and a chassis. For a single bus without a wheelchair lift, the unified base bid for a chassis and body was $41,978 (total bid equaled $42,304 per bus); for a bus with a wheelchair lift, the unified base bid per bus was $42,616 (total bid equaled $45,892 per bus). NTC submitted a bid of $27,392 for each bus chassis. TESCO submitted a bid of $15,741 for each bus body without a wheelchair lift and $18,670 for a bus body with a lift.

On May 28, 1991, the board accepted the bids of NTC (chassis) and TESCO (body). It rejected the Ohio Bus bids because they allegedly did not conform to the requirements of R.C. 3327.08.

*5 On July 31, 1991, the trial court entered a judgment in which it granted Ohio Bus’ motion for summary judgment and denied the like motions of the other parties. The lower court did not reach the constitutional issue or the issue of whether the bids submitted by Ohio Bus could be deemed separate and independent bids under R.C. 3327.08. Rather, the court below construed R.C. 3327.08 and found that the clear and unambiguous language of the statute requires the board to accept separate and independent bids for bus bodies and chassis but does not mandate a separate, independent bid listing either the base price of a chassis or a base price of a body. The court further found that, even assuming the pertinent language used in R.C. 3327.08 was ambiguous, the statute must be read in pari materia with R.C. 3313.46(G), which requires that in competitive bidding for a public project the entity submitting the lowest responsible bid must be awarded the contract. The lower court concluded that in interpreting the statutes together, the intent of the legislature and the purpose of the bidding statutes would be obviated by accepting only separate bids — one for bodies and one for chassis. Based upon its construction of R.C. 3327.08, the court below granted the request for a permanent injunction, declared that Ohio Bus had complied with the statute, declared that Ohio Bus was the lowest responsible bidder, and declared that the board had failed to comply with R.C. 3313.46. The board was enjoined from entering into contracts with NTC/TESCO and ordered to award the contract for the purchase of the fifteen buses to Ohio Bus. Neither the board nor the Attorney General appealed this judgment and áre, therefore, not parties to this appeal.

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Bluebook (online)
610 N.E.2d 1164, 82 Ohio App. 3d 1, 1992 Ohio App. LEXIS 4007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-bus-sales-inc-v-toledo-board-of-education-ohioctapp-1992.