State Ex Rel. Eas v. Cooperative Educ.

848 P.2d 1123
CourtNew Mexico Court of Appeals
DecidedFebruary 17, 1993
Docket11143
StatusPublished

This text of 848 P.2d 1123 (State Ex Rel. Eas v. Cooperative Educ.) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Eas v. Cooperative Educ., 848 P.2d 1123 (N.M. Ct. App. 1993).

Opinion

848 P.2d 1123 (1993)
115 N.M.App. 196

STATE ex rel. EDUCATIONAL ASSESSMENTS SYSTEMS, INC., Plaintiff-Appellant,
v.
COOPERATIVE EDUCATIONAL SERVICES OF NEW MEXICO, INC., Defendant-Appellee.
EDUCATIONAL ASSESSMENTS SYSTEMS, INC., A New Mexico Corporation, Plaintiff-Appellant,
v.
Max LUFT, individually and Cooperative Educational Services of New Mexico, Inc., a New Mexico non-profit corporation, Defendants-Appellees.

No. 11143.

Court of Appeals of New Mexico.

February 17, 1993.

Martin E. Threet, Robert G. Kavanagh, Kevin H. Kartchner, Threet & King, Albuquerque, for plaintiff-appellant.

Marshall G. Martin, Hinkle, Cox, Eaton, Coffield & Hensley, Albuquerque, for defendant-appellee Max Luft.

Dan A. McKinnon, III, Marron, McKinnon & Ewing, Albuquerque, for defendant-appellee Co-op. Educational Services.

OPINION

FLORES, Judge.

Educational Assessments Systems, Inc. (EASI) appeals from a decision by the district court dismissing with prejudice its petition for a writ of quo warranto, as well as its related complaint for damages, both of which raise questions under the Procurement *1124 Code, NMSA 1978, §§ 13-1-28 to -199 (Supp. 1984). On appeal, EASI contends that the district court erred (1) in determining that the Procurement Code contained applicable exemptions, (2) that, in any event, the Code contains an adequate legal remedy but does not authorize a private cause of action, and (3) on these facts neither Cooperative Educational Services of New Mexico, Inc. (CES) nor Max Luft (Luft), Chief Executive Director of CES, were liable to EASI for actions in restraint of trade or civil rights violations.

BACKGROUND

In 1979, CES was formed as a New Mexico nonprofit corporation by several public school districts for the primary purpose of procuring and delivering educational services to the school district members at a reduced cost. In 1984, approximately thirty school districts joined forces and entered into a joint powers agreement (JPA) pursuant to the provisions of the Joint Powers Agreements Act, NMSA 1978, Sections 11-1-1 to -7 (Repl.Pamp. 1983). The objective was to establish an educational cooperative which would pool their efforts and resources in order to procure services for the respective school districts at an affordable cost. The member school districts comprising the cooperative designated CES as the administering agency of the cooperative. Each superintendent of the various member school districts served on the board of directors of CES. The JPA provided that all purchases by the cooperative would be upon the direction of the board of directors of CES and had to be in accordance with the requirements of the Procurement Code.

Subsequent to its formation, one of CES's primary activities was the delivery of ancillary or special education services to member school districts. In 1985, CES, an administering agency of the cooperative, issued a request for proposal (RFP) for ancillary services. EASI protested, claiming that (1) the RFP was too burdensome because the requested background information concerning the personnel who were to provide the services was difficult to obtain, and (2) automobile insurance naming CES as a co-insured could not be obtained. CES denied EASI's protest. Following a hearing before the cooperative's board of directors, EASI's appeal was also denied. EASI was advised at that time of its right to seek judicial review of that decision, pursuant to Section 13-1-183. EASI failed to seek such judicial review under Section 13-1-183, but rather initiated the present action.

This case initially began as two separate, but related, lawsuits. In the first suit, EASI petitioned the district court for a writ of quo warranto, for temporary restraint, and for injunctive relief. EASI requested the district court to direct CES to show cause regarding CES's authority to act as the administering agency of a JPA and further requested the court to: (1) issue a temporary restraining order to prevent the officers and directors of CES from issuing a response to the RFP issued by the school districts that form the JPA, who, in turn, sought submission of proposals to provide the JPA with management services; (2) permanently enjoin the officers and directors of CES from issuing a proposal at any time in response to the RFP; and (3) enjoin the directors of CES from causing the JPA to approve any proposal submitted by CES until the provisions of the Procurement Code had been met and until a meaningful competitive atmosphere could be achieved. The district court denied EASI's request for a temporary or preliminary injunction for the reason that EASI had failed to show that irreparable harm would result.

In the second suit, EASI filed a complaint for damages based on restraint of trade and deprivation of civil rights against Luft, individually, and against CES.

Upon EASI's motion, the district court ordered consolidation of the two cases. However, prior to consolidation, CES moved for summary judgment in the first lawsuit, arguing (1) that the issues were moot since CES had been dissolved and no longer acted as the administering agency under the JPA; and (2) that an adequate remedy at law existed under Section 13-1-172, therefore negating EASI's need for injunctive relief or a writ of quo warranto. The district court granted CES's motion for summary judgment, in part, stating that *1125 the Joint Powers Agreements Act does not prohibit a private corporation from serving as an administering agency. Thereafter, EASI's motion for partial summary judgment on the issue of the liability of CES and Luft, based on restraint of trade and deprivation of civil rights, was denied.

Following a trial on the merits, and after filing amended findings of fact and conclusions of law, the district court entered a judgment dismissing both complaints with prejudice. EASI appeals from this judgment and raises several issues which we have consolidated into the following: (1) whether the district court erred in concluding that the Procurement Code contains relevant exemptions, and thus was not violated as EASI claims; (2) whether the district court erred in concluding that the Procurement Code provides the sole remedy for violations thereof; and (3) and (4) whether the district court erred in concluding that CES and Luft were not liable to EASI for restraint of trade or civil rights violations. We affirm.

DISCUSSION

I. Applicability of the Procurement Code

On appeal, EASI argues that the district court erred in concluding that CES and Luft did not violate the Procurement Code. Specifically, the district court concluded that a cooperative formed pursuant to the provisions of the Joint Powers Agreements Act is not required to comply with the provisions of the Procurement Code. The district court also concluded that the Procurement Code exempts cooperative procurement and that, as the administering agency of the cooperative, CES was likewise immunized from the requirements of the Procurement Code. Finally, the court concluded that "CES did not act in violation of the Procurement Code, or it at least substantially complied with its provisions." EASI contends that the district court erred in concluding that a cooperative procurement agreement among local public bodies exempts those bodies from the competitive proposal procedure mandated by the Procurement Code.

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

Related

Rendell-Baker v. Kohn
457 U.S. 830 (Supreme Court, 1982)
Lugar v. Edmondson Oil Co.
457 U.S. 922 (Supreme Court, 1982)
Blum v. Yaretsky
457 U.S. 991 (Supreme Court, 1982)
Security Escrow Corp. v. State of Taxation & Revenue Department
760 P.2d 1306 (New Mexico Court of Appeals, 1988)
Clough v. Adventist Health Systems, Inc.
780 P.2d 627 (New Mexico Supreme Court, 1989)
Woolwine v. Furr's, Inc.
745 P.2d 717 (New Mexico Court of Appeals, 1987)
Patterson v. Globe American Casualty Co.
685 P.2d 396 (New Mexico Court of Appeals, 1984)
Northland Equities, Inc. v. Gateway Center Corp.
441 F. Supp. 259 (E.D. Pennsylvania, 1977)
Ohio River Conversions, Inc. v. City of Owensboro
663 S.W.2d 759 (Court of Appeals of Kentucky, 1984)
New Mexico Glycerin Co. v. Gallegos
145 P.2d 995 (New Mexico Supreme Court, 1944)
State v. Rodriguez
332 P.2d 1005 (New Mexico Supreme Court, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
848 P.2d 1123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-eas-v-cooperative-educ-nmctapp-1993.