Okada Trucking Co. v. Board of Water Supply

53 P.3d 799, 99 Haw. 191, 2002 Haw. LEXIS 526
Hawaii Supreme Court·Decided August 29, 2002·No. 22956·Published·Cited by 38 cases

Opinion

*192 Opinion of the Court by

LEVINSON, J.

We granted the application for a writ of certiorari filed by the intervenor-respondent-appellant-respondent-petitioner Inter Island Environmental Services, Inc. (now known as Inter Island Construction, Inc.) [hereinafter, “Inter Island”] in order to review the order of the Intermediate Court of Appeals (ICA) dismissing Inter Island’s appeal in Okada Trucking Co., Inc. v. Board of Water Supply, No. 22956 (Haw. Ct. App.2002) [hereinafter, the “ICA’s order”]. The ICA’s order dismissed Inter Island’s appeal as moot on the basis that “Okada Trucking ha[d] already completed performance of its contract with [the Board of Water Supply (BWS) ] to construct and install the Kaluanui Booster Station, Phase II and that the remedies sought by Inter Island when it sought judicial relief [could] no longer be provided.” ICA’s order at 1. As discussed more fully infra, in section III, we hold that Inter Island’s appeal falls within an exception to the mootness doctrine, because it involves a matter of public concern and is capable of repetition yet evading review. Accordingly, we vacate the ICA’s order and remand this matter to the ICA for consideration of the points of error raised by Inter Island in its appeal from the hearings officer’s decision, as instructed in our prior decision in this matter, Okada Trucking Co., Ltd. v. Board of Water Supply, 97 Hawai'i 450, 40 P.3d 73 (2002) [hereinafter, “Okada I ”].

I. BACKGROUND

The present matter involves a dispute over the interpretation of the Hawai'i Public Procurement Code, Hawai'i Revised Statutes (HRS) ch. 103D (1993 & Supp.2001), 1 and its application to the award of a procurement contract by the BWS. 2 In May 1999, the BWS issued an invitation for bids (IFB) for a project involving the construction of the Ka-luanui Booster Station, Phase II [hereinafter, “the project”]. The project involved some work that required a plumber who held a C-37 specialty contracting license. The IFB expressly provided, pursuant to HRS § 103D-302(b) (Supp.2001), 3 that any general contractor who bid for the project was re *193 quired to disclose the names of, as well as the nature and scope of work to be undertaken by, any joint contractor or subcontractor, but that, “where the value of the work to be performed by the joint contractor or subcontractor is equal to or less than one percent of the total bid amount, the listing of the joint contractor or subcontractor may be waived if it is in the best interest of [the] BWS.”

The BWS opened bids for the project on June 10, 1999 and determined that Inter Island had submitted the lowest bid, but that it had not disclosed, inter alia, the name of and the nature and scope of any work to be performed by a C-37 licensed plumbing subcontractor. 4 The BWS contacted Inter Island regarding its omission and Inter Island explained that it “did not list subcontractors for the plumbing and installation of the pumps as them quotes were considerably below 1%[,] or $13,500.[00,]” of its bid. In support of its contention, Inter Island produced an estimate that it had received from a subcontractor to perform the work that required the use of a C-37 licensed plumber, which was, in fact, less than one percent of Inter Island’s bid. The subcontractor’s estimate bore the date of June 22, 1999, which was twelve days after the “bid-opening” date of June 10, 1999. The BWS notified Inter Island on July 28, 1999 that it had been awarded the contract for the project.

On August 4, 1999, Okada Trucking, which had submitted the second lowest bid for the project, filed a protest of the BWS’s award of the contract with the BWS’s chief procurement officer (CPO), pursuant to HRS § 103D-701, see supra note 1. Okada argued that the contract for the project should not have been awarded to Inter Island because, inter alia, Intel- Island had not disclosed the name of or the ñatee and scope of work to be performed by the C-37 licensed subcontractor it intended to use, in contravention of HRS § 103D-302(b), see supra note 3, and it was not in the BWS’s best interest to waive the statutory requirement. The CPO denied Okada Trucking’s protest, reasoning that it was within the BWS’s discretion to waive the disclosure requirement in the event that, as Inter Island had verified, the work to be performed by the unnamed subcontractor was less than one percent of Inter Island’s bid.

On September 10, 1999, Okada requested administrative review of the BWS’s denial of its protest, pursuant to HRS § 103D-709, see supra note 1. By stipulation, Inter Island was allowed to intervene in the administrative proceedings. The hearings officer determined that, while Inter Island was obligated to identify all the subcontractors that it would engage in order to complete the project, the BWS could waive “the non-responsive aspects of [Inter Island’s] bid, pursuant to HRS § 103D-302(b), see supra note 3, and Hawai'i Administrative Rules (HAR) § 3-122-21(a)(8) (1997), 5 if it determined that “acceptance [of the bid] would be in [its] best interest!.]” Nevertheless, the hearings officer concluded that the IFB’s requirement that each prospective bidder “must be capable of performing the work for which the bids [were] being” invited “subsume[d a requirement that] the bidder, at the time of bid submission and no later than bid opening date, was ready and able to perform the work required on the construction project if awarded the contract.” Thus, because Inter Island failed to have a duly licensed plumbing subcontractor “lined up” and “contractually bound to perform” its delegated responsibilities at the time of bid-opening, the hearings officer found that Inter Island “was not a responsible bidder.” While the hearings officer acknowledged *194 that the BWS could waive the requirement that a bidder list each of its subcontractors and the nature and scope of them work, if the value of the unlisted subcontractor’s work was less than one percent of the total project contract amount, he ruled that the BWS could not waive the requirement that a bidder have all of its subcontractors “lined-up” and “contractually bound to perform” its delegated responsibilities prior to bid-opening.

Free access — add to your briefcase to read the full text and ask questions with AI

Okada Trucking Co. v. Board of Water Supply, 53 P.3d 799, 99 Haw. 191, 2002 Haw. LEXIS 526 (haw 2002).

53 P.3d 799 (Okada Trucking Co. v. Board of Water Supply) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Norrie v. Maui County Board of Variances and Appeals
Hawaii Intermediate Court of Appeals, 2026
Dairy Road Partners v. The Maui Planning Commission
501 P.3d 333 (Hawaii Intermediate Court of Appeals, 2021)
Penn v. Board of Parole
451 P.3d 589 (Oregon Supreme Court, 2019)
Hawai'i Technology Academy v. LE.
Hawaii Supreme Court, 2017
The Bank of New York Mellon v. R. Onaga, Inc.
400 P.3d 559 (Hawaii Supreme Court, 2017)
Oahu Publications, Inc. v. Takase.
386 P.3d 873 (Hawaii Supreme Court, 2016)
State v. Tui.
382 P.3d 274 (Hawaii Supreme Court, 2016)
Oahu Publications Inc. v. Ahn.
331 P.3d 460 (Hawaii Supreme Court, 2014)
Diamond v. Dobbin.
319 P.3d 1017 (Hawaii Supreme Court, 2014)
State v. Tierney
277 P.3d 251 (Hawaii Supreme Court, 2012)
Nishimura v. Williams
267 P.3d 699 (Hawaii Intermediate Court of Appeals, 2011)
STYKE v. Sotelo
228 P.3d 365 (Hawaii Intermediate Court of Appeals, 2010)
Hamilton Ex Rel. Lethem v. Lethem
193 P.3d 839 (Hawaii Supreme Court, 2008)
Clark v. Arakaki
191 P.3d 176 (Hawaii Supreme Court, 2008)
Right to Know Committee v. City Council
175 P.3d 111 (Hawaii Intermediate Court of Appeals, 2008)
Doe v. Doe
172 P.3d 1067 (Hawaii Supreme Court, 2007)
Taniguchi v. ASSOCIATION OF KING MANOR
155 P.3d 1138 (Hawaii Supreme Court, 2007)