Sikes v. General Publishing Co.

568 S.W.2d 33, 264 Ark. 1, 1978 Ark. LEXIS 1695
CourtSupreme Court of Arkansas
DecidedJuly 17, 1978
Docket78-144 & 78-162
StatusPublished
Cited by15 cases

This text of 568 S.W.2d 33 (Sikes v. General Publishing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sikes v. General Publishing Co., 568 S.W.2d 33, 264 Ark. 1, 1978 Ark. LEXIS 1695 (Ark. 1978).

Opinions

George Rose Smith, Justice.

For the purpose of this opinion we have consolidated these two appeals, one from the Pulaski Circuit Court and the other from the Ouachita Circuit Court.

The cases involve four state printing contracts that were at first awarded by the State Printing Board to the Hurley Company, as the lowest bidder. Within a few days after the execution of the original contracts the Board’s attention was called to the fact that the Hurley Company had not filed performance bonds within the time allowed by the Board’s regulations (7 days as to one contract, 10 days as to the other three). The Board promptly reviewed the matter at a meeting held on January 6, 1978, and voted to rescind the original contracts and to award three of them to the next lowest bidders and to readvertise the fourth, on which Hurley had been the only bidder.

These two lawsuits followed. Hurley sued the State Printing Board and its chairman, in the Ouachita Circuit Court, contending that it was taking an appeal under the Administrative Procedure Act from an adjudication by the Board. Ark. Stat. Ann. § 5-713 (Repl. 1976). The court first issued a temporary order staying any further action by the Board. When the case was reached on its merits the court held that Hurley had substantially complied with the performance bond requirement and that the Board had waived strict compliance by executing the contracts with Hurley. Case No. 78-162 is an appeal from that decision.

In the second case, General Publishing Company, which had been awarded one of the contracts as the second lowest bidder, brought suit in the Pulaski Circuit Court for a writ of mandamus to compel Robert Sikes, as Printing Administrator, to perform the ministerial act of delivering that contract, which had actually been prepared and signed for the Board before the restraining order was issued in Ouachita County. Case No. 78-144 is an appeal from the judgment of the Pulaski Circuit Court issuing the requested writ of mandamus.

The essential facts are not in dispute, having been stipulated in both cases. A regulation of the State Printing Board contains this provision, which was made known to all bidders: “Bidders must comply literally with all rules, regulations, laws, specifications, instructions, general provisions, and special provisions.” Another regulation provides that “the bidder will be required within seven (7) days [or 10 days] of the awarding of the contract to post a commercial performance bond” in a specified amount, depending upon the amount of the bid.

In November, 1977, the Board determined that Hurley was the low bidder on the four contracts now in question. Hurley was duly notified of the award, but it failed to post the required performance bonds within the period allowed by the regulations. Instead, on the last day Hurley filed a letter to the Printing Administrator, signed by an attorney-in-fact for a bonding company, saying with respect to one contract, for example, that a bond had been issued by the company’s Chicago office, that it was “enroute to me via U.S. Mail,” and that it would be delivered to the Printing Administrator upon its receipt by the attorney-in-fact. The chairman of the Printing Board, acting on his own initiative, decided that the letter was sufficient and signed the contracts, along with the Printing Administrator. The contracts were sent to Hurley.

When other bidders learned that Hurley had not filed its performance bonds within the time allowed, they filed protests with the Board. The matter was at once placed on the agenda for the scheduled January 6 meeting of the Board. Representatives of Hurley and of General Publishing Company attended the meeting and were allowed to state their positions, but no testimony was taken. After an extended discussion, which was recorded, the nine-member Board adopted motions, by votes of 7 to 1 and 7 to 0, rescinding the contracts because the performance bonds had not been filed by Hurley and, as we have said, directing that the contracts be awarded to the next lowest bidders or be readvertised where Hurley was the only bidder.

We consider first the Ouachita County case. The State Printing Law, Act 544 of 1975, created the State Printing Board and included among its duties that of serving “as appeals and review board for . . . contractors or prospective bidders over disputes arising from administration of the State Printing Law.” Ark. Stat. Ann. § 14-307 (Supp. 1977). Hurley relies upon that language of the statute to support its argument that the action taken by the Board on January 6 was an “adjudication” that was subject to judicial review under the Administrative Procedure Act.

That argument cannot be sustained. Administrative boards and commissions act at times administratively and at times judicially or quasi-judicially. But courts act judicially in reviewing administrative proceedings. The distinction is fundamental under the constitutional separation of powers.

The Administrative Procedure Act makes it clear that, under the act, the courts’ appellate review is confined to adjudications and does not extend to administrative rulings. An “adjudication” is simply a judicial determination. Webster’s New International Dictionary (2d ed., 1939). We quote the pertinent provisions of the Administrative Procedure Act, which make it clear that only “adjudications” are to be subject to direct appellate review by the courts:

Order and Adjudication — “Order” means the final disposition of an agency in any matter ... in which the agency is required by law to make its determination after notice and hearing. “Adjudication” means agency process for the formulation of an order. [Ark. Stat. Ann. § 5-701 (d).J
* ‡ $ jfc
In every case of adjudication, a final decision or order shall be in writing or stated in the record. A final decision shall include findings of fact and conclusions of law, separately stated. . . . Parties shall be served either personally or by mail with a copy of any decision or order. [§ 5-710 (b).]
(a) In cases of adjudication, any person who considers himself injured in his person, business, or property by final agency action shall be entitled to judicial review thereof under this Act. Nothing in this Section shall be construed to limit other means of review provided by law.
(b) Proceedings for review shall be instituted by filing a petition
(1) in the Circuit Court of any county in which the petitioner resides or does business.
$ ‡ * * $
(d) Within thirty days after service of the petition, or within such further time as the court may allow, but not exceeding an aggregate of ninety days, the agency shall transmit to the reviewing court the original or a certified copy of the entire record of the proceeding under review. [§ 5-713.]

It seems too clear for argument that the action taken by the Printing Board at its meeting on January 6 was not such an adjudication under the Administrative Procedure Act as to be subject to review in Ouachita County. The Board was not required by law to make its determination after notice and a hearing. The Board heard no testimony. It made to findings of fact or conclusions of law.

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Bluebook (online)
568 S.W.2d 33, 264 Ark. 1, 1978 Ark. LEXIS 1695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sikes-v-general-publishing-co-ark-1978.