Specialty Asphalt & Constr., LLC v. Lincoln County

421 P.3d 925
CourtWashington Supreme Court
DecidedJuly 26, 2018
Docket95085-7
StatusPublished
Cited by11 cases

This text of 421 P.3d 925 (Specialty Asphalt & Constr., LLC v. Lincoln County) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Specialty Asphalt & Constr., LLC v. Lincoln County, 421 P.3d 925 (Wash. 2018).

Opinion

FAIRHURST, C.J.

¶ 1 Specialty Asphalt & Construction LLC and its majority owner, Lisa Jacobsen (Specialty), brought suit against Lincoln County (County) for gender discrimination, negligent misrepresentation, and breach of contract arising out of the County's bidding and contracting process for a paving project. Through various motions, Specialty lost all three claims at the trial court. The Court of Appeals affirmed, and Specialty petitioned for review. We reverse the Court of Appeals in part and affirm in part. We hold that Specialty defeated the County's motion for summary judgment on the gender discrimination and negligent misrepresentation claims but the contract claim was properly dismissed. The case is remanded to the trial court to reinstate the two surviving claims.

I. FACTS AND PROCEDURAL HISTORY

A. Factual background

¶ 2 Specialty, a licensed contractor that performs paving and maintenance work, responded to a call for bids from the County for a paving project. Jacobsen first learned about the project when the County called her business to ask if it worked in the area. Jacobsen then received the bid proposal via e-mail from the County. On two separate pages, the bid proposal stated that no bond was required. Clerk's Papers (CP) at 293 ("No proposal bond or performance bond will be required."), 297 ("No bid bond or performance *929 bond is required for this bid."). The bid proposal was prepared by Phil Nollmeyer, the county operations and permit coordinator. He used the maintenance project template that had the no bond required language because bonds are not required for the purchase of materials or simple maintenance contracts. The County claimed that Nollmeyer made a clerical error and that he should have removed the no bond required language.

¶ 3 The bid proposal announced a scheduled opportunity to view the project and scope of work prior to the bid deadline (referred to as a walk-through). Jacobsen was the only contractor to attend the walk-through, which was led by three county commissioners and Nollmeyer. At the beginning of the walk-through, Nollmeyer made a comment that Jacobsen's shoes with heels were not the most appropriate attire for the walk-through. During the walk-through, the commissioners sought Jacobsen's recommendations for the project, which the County subsequently incorporated into the bid proposal's addendum 1. A few days after the walk-through, a male representative of Arrow Concrete & Asphalt Specialties, Inc. 1 came to see the paving project location. Nollmeyer showed him where the work locations were and went over the basic tasks to be performed, essentially giving an unscheduled private walk-through.

¶ 4 Prior to the bid deadline, Nollmeyer called Jacobsen and asked if Specialty was going to submit a bid. He discouraged her from bidding because the project was more trouble than it was worth. 2 Nevertheless, Jacobsen submitted a bid for the project on behalf of Specialty. The County also received a bid from Arrow. According to the addendum 1, the bids would be opened on August 5, 2013.

¶ 5 On August 6, 2013, the County awarded the project to Specialty. The day after awarding the project to Specialty, the County began Department of Labor and Industries (L&I) contractor tracking which allowed the County to track Specialty's status on an ongoing basis. 3 Nollmeyer testified that the County normally checks contractor status on the L&I website prior to awarding bids to ensure that the contractors are not disbarred. 4 He admitted that he checked Specialty's status prior to awarding the bid but could not recall if he did so for Arrow. He denies having initiated contractor tracking, but the evidence shows that someone at the County did, unless it truly was a clerical error on L&I's part. Wash. Supreme Court oral argument, Specialty Asphalt & Constr. LLC v . Lincoln County, No. 95085-7 (May 15, 2018), at 30 min., 40 sec., video recording by TVW, Washington State's Public Affairs Network, https://www.tvw.org/watch/?eventID=2018051035.

¶ 6 Several days after August 5, 2013, because she had not yet been notified of the award, Jacobsen called the County and asked who had received the award. The woman on the phone, either Shelly Johnston, the county auditor, or Marci Patterson, the deputy clerk to the board of commissioners, told Jacobsen that Specialty had gotten the award, Nollmeyer had been directed to call her with news of the award, and a notification had been sent by mail. The day after her phone conversation, Jacobsen received the award letter (dated August 6, 2013) by mail and the commissioners' order signed by the county commissioners. Jacobsen began to mobilize resources and materials for the project and *930 told her assistant to stop accepting new jobs because their schedule would be full for the season.

¶ 7 A few days later, Jacobsen received a letter from the County (dated August 12, 2013) with the contract and contract bond. Jacobsen signed the contract on behalf of Specialty on August 16, 2013, and on the contract bond, she wrote "[n]o proposal bond or performance bond required as per page #2" and left it unsigned. CP at 307. She mailed both documents back to the County. The county commissioners did not countersign. After receiving the documents, Johnston called Jacobsen and told her that the County now required a bond for the project. Jacobsen objected to this change because the bid explicitly provided that no bond was required and because she believed the bond to be a significant item. Jacobsen also explained that Specialty had performed similar public works projects for the city of Davenport, located within the county, without a bond, and that the County could accept responsibility for proceeding without a bond.

¶ 8 On August 19, 2013, the County withdrew the bid award. On or about August 20, 2013, a new call for bids was sent out with a bond requirement. Specialty sent a demand letter (dated August 23, 2013) requesting that the County maintain its bid award. In the letter, Specialty conceded that the bond was statutorily required by RCW 39.08.010, but claimed that failure to require the bond does not void the contract. In response, the County ceased and withdrew the rebidding process. The County was willing to proceed with Specialty's award of the original bid so long as Specialty obtained the bond. The County also offered to reimburse Specialty for the expense of the bond premium. Jacobsen believed that this would expose both parties to liability for collusion or bid rigging. Sometime after August 19, 2013, Jacobsen had a phone conversation with county commissioner Scott Hutsell, who described the situation as a mess. He assured Jacobsen that he would investigate the available options that would enable the project to go forward with Specialty.

¶ 9 The following spring, April 2014, the County contacted Specialty to see if the project could be done with the bond at the County's expense.

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Bluebook (online)
421 P.3d 925, Counsel Stack Legal Research, https://law.counselstack.com/opinion/specialty-asphalt-constr-llc-v-lincoln-county-wash-2018.