State, Department of Transportation v. Hendry Corp.

500 So. 2d 218, 11 Fla. L. Weekly 2408, 1986 Fla. App. LEXIS 10657
CourtDistrict Court of Appeal of Florida
DecidedNovember 18, 1986
DocketNo. BN-3
StatusPublished
Cited by4 cases

This text of 500 So. 2d 218 (State, Department of Transportation v. Hendry Corp.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, Department of Transportation v. Hendry Corp., 500 So. 2d 218, 11 Fla. L. Weekly 2408, 1986 Fla. App. LEXIS 10657 (Fla. Ct. App. 1986).

Opinion

NIMMONS, Judge.

The State Department of Transportation (DOT) seeks certiorari review of an order of the Circuit Court of the Second Judicial Circuit In and For Leon County denying DOT’s motion to dismiss a complaint of the Hendry Corporation (Hendry) and requiring DOT to answer the complaint. Hen-dry’s complaint sought injunctive and declaratory relief as will be more fully discussed in our opinion. We grant certiorari.

This case arose out of a dispute over certain bidding procedures of the DOT in connection with a federally-aided public works project in Monroe County which involved the partial destruction of a bridge and the transformation of a portion of the bridge into a fishing pier (hereinafter the “project”).

In a notice dated July 3, 1985, DOT notified contractors that sealed bids would be received on the project.1 Contractors were informed in writing that they must meet or exceed Women Business Enterprise (hereinafter “W.B.E.”) goals2 or demonstrate that the goals could not be met despite the contractor’s good faith efforts. The notice informed them that the W.B.E. goal for the project was the expenditure of 2% of the total amount of the bid on W.B.E.’s, that the W.B.E. participation information must be submitted with the contractor’s bid proposal showing satisfaction of the W.B.E. goal or demonstrating that good faith efforts were made to meet the goal, and that failure to meet such requirements would result in the disqualification of the bidder. Hendry submitted its bid with full knowledge of the above requirements and provisions.

Hendry submitted a bid which included a W.B.E. participation information form showing that only 1.3% of the total bid would be performed by W.B.E’s. No good faith efforts documentation was submitted by Hendry. When the bids were opened, Hendry’s bid was found to be the low bid and DOT initially declared Hendry to be the low bidder. Subsequently, however, DOT furnished Hendry with written notification that Hendry had been declared non-responsive because of its failure to meet the W.B.E. requirements of the project and [220]*220that another contractor, Atlantic Foundation Company, Inc. (Atlantic), was being declared the apparent low bidder.

Hendry timely filed notice of protest and formal written protest pursuant to Section 120.53, Florida Statutes, protesting the award of the contract to an entity other than Hendry. DOT, acting in accordance with the provisions of Section 120.53(5), referred Hendry’s protest to the Division of Administrative Hearings (D.O.A.H.) for formal hearing. Atlantic was allowed to intervene in such proceeding.

At the outset of the hearing on October 11, 1985, Hendry’s counsel announced that Hendry would attempt to show: (1) that it had inadvertently failed to list one of its W.B.E. contractors on its bid form, inclusion of which would have put Hendry over the 2% W.B.E. requirement, and that such mistake was a minor irregularity which should have been waived by DOT, and (2) that DOT’s inclusion of the W.B.E. requirement as part of the bid specifications was ultra vires its statutory authority. In addition, Hendry asserted that DOT’s regulations purportedly implementing Sections 339.0805 and 339.081, Florida Statutes, were violative of the Florida and United States Constitutions in that they were discriminatory and constituted an illegal quota system.

At the commencement of the hearing, DOT and Atlantic took the position that Hendry’s ultra vires argument was, in effect, a rule challenge since the provisions for W.B.E. goals, which DOT adhered to in the instant case, were all expressly set out in Rule 14-78.03, Florida Administrative Code. They argued that since no Section 120.56 rule challenge petition had been filed, the jurisdiction of D.O.A.H. to hear the rule challenge had not been properly invoked. They also argued that the hearing officer was without authority to consider the constitutionality of DOT's bidding procedure rule. Counsel for Hendry ultimately agreed that DOT had followed its own rules in declaring Hendry’s bid nonre-sponsive. Accordingly, since Hendry was, in effect, attacking the subject rule, counsel for Hendry asked the hearing officer to “treat this hearing as one conducted pursuant to Section 120.56.” The hearing officer refused to do so, observing that “I have no authority to on my own convert this hearing to a 120.56 proceeding.”

Thereafter, the parties proceeded with the presentation of evidence. Five weeks later, on November 15, 1985, the hearing officer issued his recommended order recommending that Hendry’s bid be rejected and that the contract be awarded to Atlantic. Among the hearing officer’s findings were:

1. That DOT’s W.B.E. requirements were established in a duly promulgated rule (Rule 14-78.03(2)(b), Florida Administrative Code.)
2. That the W.B.E. requirements of the subject project had been clearly incorporated into the bid specifications.
3. That the W.B.E. requirements were a material part of the bid specifications which DOT could not waive.
4. That Hendry had not, prior to submitting its bid, filed a Rule 14-25.04(1), Florida Administrative Code, notice of protest challenging the validity of DOT’s W.B.E. requirements in the specification for the subject project, and that Hendry had therefore waived its right to challenge DOT’s action on grounds that the inclusion of the W.B.E. requirements was beyond its statutory authority.
5. That Hendry had conceded that DOT’s actions regarding the inclusion of the W.B.E. requirements were consistent with DOT rules governing the same as contained in Chapter 14-78, Florida Administrative Code.
6. That the subject proceeding was initiated under Section 120.57 and that Hen-dry’s attack on the validity of Chapter 14-78 had not been brought in a proper rule challenge proceeding, and that, accordingly, it would be presumed that the rule was valid.

After the entry of the recommended order, but before entry of DOT’s final order, Hendry, on November 27,1985, filed suit in the Leon County Circuit Court against [221]*221DOT seeking injunctive and declaratory relief. Essentially, Hendry’s complaint alleged that the hearing officer erroneously ruled that Hendry was precluded from asserting that Chapter 14-78, Florida Administrative Code, particularly Rule 14-78.-03(2)(b), was invalid and beyond the legislative authority under Sections 339.08(1) and 339.0805, Florida Statutes, and that Hendry was without an adequate remedy, absent intervention of the circuit court, to correct such alleged error, and that Section 339.-0805, Florida Statutes, upon which authority Rule 14-78.03(2)(b) was apparently adopted, is “unconstitutional and invalid, null and void in violation of Article III, Section 1 and Article II, Section 3 of the Florida Constitution, and operates to deprive the Plaintiff of due process and equal protection of the law as guaranteed under Article I, Sections 2 and 9, of the Florida Constitution and the due process and equal protection clauses of XIV Amendment to the United States Constitution” and that “said statute is constitutionally vague and indefinite.”

On December 3, 1985, DOT filed a motion to dismiss Hendry’s circuit court complaint on the grounds that Hendry had failed to exhaust its administrative remedies.

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Bluebook (online)
500 So. 2d 218, 11 Fla. L. Weekly 2408, 1986 Fla. App. LEXIS 10657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-department-of-transportation-v-hendry-corp-fladistctapp-1986.