State, Ex Rel. Polaroid Corp. v. Denihan

517 N.E.2d 1021, 34 Ohio App. 3d 204, 1986 Ohio App. LEXIS 10336
CourtOhio Court of Appeals
DecidedDecember 9, 1986
Docket86AP-730
StatusPublished
Cited by5 cases

This text of 517 N.E.2d 1021 (State, Ex Rel. Polaroid Corp. v. Denihan) is published on Counsel Stack Legal Research, covering Ohio 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. Polaroid Corp. v. Denihan, 517 N.E.2d 1021, 34 Ohio App. 3d 204, 1986 Ohio App. LEXIS 10336 (Ohio Ct. App. 1986).

Opinion

Whiteside, J.

Relator, Polaroid Corporation, appeals from a judgment of the Franklin County Court of Common Pleas and raises three assignments of error as follows:

“1. The trial court erred as a matter of law in holding that the state appellees did not have a clear legal duty to award the Ohio Driver License Program contract to Polaroid as low bidder and that Polaroid did not have a clear legal right to the award, in that the state appellees expressly intended to include Polaroid’s plastic-coated film within their base material specification and determined, prior to the bid opening, that the Polaroid film satisfied their announced specification.
“2. The trial court erred as a matter of law in holding that the state appellees were not barred, pursuant to the doctrine of promissory estoppel, from rejecting Polaroid’s bid.
*205 “3. The trial court erred as a matter of law in holding that an action for damages in the Court of Claims constituted an adequate remedy at law for the unlawful rejection of Polaroid’s lowest and best bid for the Ohio Driver License Program contract.”

Respondents, William Denihan, Director of the Department of Highway Safety, Michael J. McCullion, Registrar of Motor Vehicles, William G. Sykes, Director of the Department of Administrative Services, and Nappy M. Hetzler, Administrator of State Purchasing, have also filed an appeal and raise a single assignment of error as follows:

“The trial court erred as a matter of law in holding that injunctive relief and a temporary restraining order may be issued against the State of Ohio, agencies and officials therein in a court of common pleas.”

On March 21, 1986, bids were received by the Administrator of State Purchasing, Department of Administrative Services, for supplying the state with film, cameras and supplies for the Ohio Color Photographic Drivers’ License Program to enable the Registrar of Motor Vehicles to fulfill his statutory duties pursuant to R.C. 4507.13 with respect to the issuance of drivers’ licenses. Only two bids were received, one from relator Polaroid Corporation and the other from intervening-respondent, NBS Imaging Systems, Inc., with relator Polaroid being the apparent low bidder. On May 20, 1986, the Department of Administrative Services, acting through respondent Nappy Hetzler, rejected all bids directing a letter to relator Polaroid stating that:

“Please be advised that all offers sent in response to the above referenced Invitation To Bid have been rejected. The apparent low bidder was rejected as the sample provided failed to meet material composition and bid specifications. The remaining bidder was rejected due to lack of competitive pricing.”

Shortly therafter, relator Polaroid brought this action seeking a writ of mandamus ordering respondents to award the contract to relator Polaroid Corporation, as well as injunctive relief to enjoin respondents from awarding the contract to anyone other than Polaroid. Upon being granted leave to intervene, intervening-respondent NBS Imaging Systems, Inc. (“NBS”) filed a cross-claim seeking a writ of mandamus ordering respondents to award the contract to it. The case proceeded to trial, resulting in a directed verdict at the' conclusion of Polaroid’s case. The cross-claim of intervening-respondent NBS was dismissed without prejudice at its request. In the judgment entry, the trial court made the following findings:

“1. Plaintiff-Relator, Polaroid Corporation, failed to prove that Plaintiff-Relator has a clear legal right to the relief prayed for, that being the award of contract sought. Any discussions and statements made by Defendant-Respondents were in the nature of preliminary discussions and were insufficient to commit the deciding authority to action.
“2. Plaintiff-Relator, Polaroid Corporation, failed to prove that Defendant-Respondents Denihan, Mc-Cullion, Sykes and Hetzler had a clear legal duly to award the contract sought for the reasons that the State of Ohio has the right to reject any and all bids when done in compliance with law, and that the actual words of the specification in question in this action when viewed by an objective viewer state that the eventual product must be plastic without the presence of a paper element. The evidence presented established that the product of Plaintiff-Relator contained a paper element.
“3. Plaintiff-Relator, Polaroid *206 Corporation, has an adequate remedy at law for the reason that had Plaintiff-Relator sustained measurable damages there is a forum and procedure for Plaintiff-Relator to seek relief for damages.
“4. The Court has jurisdiction to award the relief sought in this action.”

Prior to advertising for bids, a pre-bidding conference was conducted, at which representatives of Polaroid and NBS, as well as respondents McCullion and Hetzler, were present. Respondents expressed a desire that competition be afforded by competitive bidding, Polaroid and NBS being the only two companies known to be capable of fulfilling the needs of the Department of Highway Safety with respect to the drivers’ license program. Assurance of competitive bidding was complicated by the fact that, while the film of NBS is all plastic, that of Polaroid contains some paper. The notes of respondent Hetzler made at the prebidding conference on a copy of draft specifications contains a notation that “[t]he material needs to be identified,” and the words “polyester or polycarbonate or equal.”

Between the prebidding conference and the submission of bids, representatives of Polaroid contacted respondent McCullion, Registrar of Motor Vehicles, on several occasions seeking confirmation that the Polaroid film would meet the contract specifications. Polaroid representatives testified that they received such assurances; whereas, the state officials involved testified only to the effect that they assured Polaroid that it was the state’s desire to have competitive bidding and to receive a bid from Polaroid as well as from NBS. One of the communications was by a February 25, 1986 letter signed by Polaroid’s national marketing manager to respondent McCul-lion, in which it is stated in part that: “my understanding is that the language reads polyester, polycarbonate or plastic equivalent,” and points out that the Polaroid film “consists of 3 mils of poly material, 4 mils of paper material and [an] additional 3 mils of poly.” No written response was made to this letter.

Between the prebidding conference and the eventual receipt of bids, a modification of the specifications was suggested by the Bureau of Motor Vehicles, which would include the sentence: “The entire license must be made of plastic with no paper materials included.” This language was specifically rejected by respondent Hetzler for the reason that such specification would probably preclude Polaroid from bidding. Nevertheless, the specification adopted and used in the bidding documents as the requirement for the film states:

“The driver license shall be photographically applied to the base material. This material shall be either polyester, polycarbonate or an equivalent plastic and shall be a minimum of 7.5 mils in thickness.”

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

Related

Upjohn Co. v. Ohio Department of Human Services
603 N.E.2d 1089 (Ohio Court of Appeals, 1991)
Kokosing Construction Co. v. Dixon
594 N.E.2d 675 (Ohio Court of Appeals, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
517 N.E.2d 1021, 34 Ohio App. 3d 204, 1986 Ohio App. LEXIS 10336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-polaroid-corp-v-denihan-ohioctapp-1986.