Sternberg v. Board of Com'rs of Tangipahoa Drainage Dist. No. 1

105 So. 372, 159 La. 360, 1925 La. LEXIS 2239
CourtSupreme Court of Louisiana
DecidedJune 22, 1925
DocketNo. 27046.
StatusPublished
Cited by17 cases

This text of 105 So. 372 (Sternberg v. Board of Com'rs of Tangipahoa Drainage Dist. No. 1) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sternberg v. Board of Com'rs of Tangipahoa Drainage Dist. No. 1, 105 So. 372, 159 La. 360, 1925 La. LEXIS 2239 (La. 1925).

Opinion

LAND, J.

The plaintiff has enjoined defendant drainage district from awarding to the McWilliams Dredging Company contracts Nos. 1, 2, and 3, and to L. A. Loustalout contract No. 4, in connection with certain work to be done in drainage district No. 1, in Tangipahoa parish, on the ground that plaintiff was the lowest bidder on said contracts, and that the bids of the dredging company and of Loustalout were altered and changed after the same had been submitted to said board, and were accepted by said hoard after all bids had been rejected and all deposit checks returned to the bidders, and without notice to plaintiff and other bidders. ;

Plaintiff alleges:

That contracts Nos. 1, 2, and 3 cover all work to be done in said drainage district, except the item of “clearing and cleaning,” which item for the entire district is embodied in contract No. 4.

That Loustalout submitted a bid on contract No. 4 alone, and that said dredging company, in its bid on contract No. 1, added ■an item not required nor contemplated by the plans and specifications, to be included in said contract, but which was an item of contract No. 4, to wit, “220 acres of clearing at $220 per acre,” and that, furthermore, said dredging company likewise added an item to its bid on contract No. 2, not required or contemplated as an item therein by the plans and specifications, to wit, “the excavation of laterals to the main channels at 25 cents per cubic yard.” ,

It is alleged by plaintiff that the inclusion by said dredging company of these items in' its bids for contracts Nos. 1 and 2 was not a mere informality that could be waived, by eliminating such items from the bids, but had the effect of disqualifying its bid on each of these contracts.

Plaintiff alleges that the law requires that the work to be done should be let by defendant drainage board to the lowest possible *363 bidder or be readvertised, that the bids of said dredging company with items eliminated after submission to said drainage board became in effect new bids, and that théir consideration and acceptance, after the rejection of all bids and return of deposit checks, was contrary to law, arbitrary, and an abuse of discretion by said drainage board, to the damage of. plaintiff'. Plaintiff prays for judgment decreeing that the awarding of the works advertised to be .done to the successful bidders to be contrary to law and null and void, and decreeing any contract entered into in pursuance of the award as likewise invalid, null, and void, and that defendant drainage district be perpetually enjoined from executing any contract under said award.

Plaintiff further prays that said drainage district be required to accept his bid as the lowest bid, or to reject all bids and readvertise the whole work according to law.

■ George W. Benson, and other electors and taxpayers residing in drainage district No. 1' of Tangipahoa parish, intervened in the suit, and united with plaintiff in his demands, ■upon similar grounds, and seek the same relief.

Defendant dredging company and Loustalout filed exceptions of no cause of action, which were overruled.

By the consent of all parties, the ease was tried upon the merits, and judgment was rendered by the court below, setting aside and annulling the award of the contract to the McWilliams Dtedging Company and to Loustalout by defendant drainage board, and enjoining said defendants and said board from signing or accepting any contract on said award, and ordering said drainage board to readvertise for new bids as the law directs. Loustalout and the McWilliams Dredging Company and defendant drainage board have appealed.

1. We are of the opinion that the exception of no cause of action was properly overruled.

This exception is predicated upon the proposition that as plaintiff is an unsuccessful bidder, and as all bids were rejected, he is without interest to attack the action of defendant drainage board in awarding the contract in this case.

It is the established jurisprudence of this state that an unsuccessful bidder on a contract advertised by a public board to be let to the lowest bidder may sue to set aside the award. State ex rel. Bank v. Louisiana State Board of Agriculture, 122 La. 677, 48 So. 148; Bienvenu v. Police Jury, 126 La. 1103, 53. So. 362; State v. Police Jury, 142 La. 691, 77 So. 503.

2. The case is clearly with the plaintiff on the merits. Section 2 of Act 249 provides that drainage and other public boards “shall meet at the time and place set and in open session shall receive, open and read all bids and shall then and there award said bids to the lowest possible bidder, provided they shall hqve the right to reject any and all'bids .and proposals and readvertise for same.” This section makes it the mandatory duty of a public board, at the time the bids are opened, “then and there to award said bid to the lowest possible bidder.”

The only alternative that a public board has under the statute is to reject any and all bids and readvertise for same.

Notwithstanding the right to reject, the bid must be awarded in competition to the lowest possible bidder, if awarded at all. Clearly an award made to a bidder, after all bids have been rejected and all' deposit checks have been returned, is illegal and wholly unauthorized by Act 249 of 1924. The plain intent and purpose of the statute is to secure fair and free competitive bidding on public contracts. To permit such action on the part of a public board would be to open the door to favoritism in the awarding of contracts affecting the public interest, the very evil which the statute was enacted to prevent.

*365 The mere fact that a public board has been requested by one or two bidders, as in the present case, to allow them to change their bids and to resubmit same, after all bids had been rejected, does not present any valid reason or legal excuse for the violation of the statute, which is peremptory in its requirement, and necessarily so, in 'order' to conserve the public interest in the matter of the proper letting of public contracts.

The contracts awarded to the McWilliams Dredging Company have not been awarded upon the bids originally submitted to defendant drainage board, but upon the bids as subsequently changed and altered, after having been publicly opened and rejected.

It is therefore an award not submitted to public competition, as required by the statute, but is in the nature of a new bid and a private contract between defendant drainage board and the successful bidder.

Six bids were opened at the meeting of defendant drainage board on October 13, 1921. The’board then adjourned until October 15th, for the purpose of considering these bids. At this meeting, after considerable discussion, it was moved and seconded “that the board reject all bids, and that the construction work be readvertised as soon as possible.” This motion was carried unanimously, and the board adjourned.

The board met again on October 23, 1924. The minutes of the meeting of October 15, 1924, were read and approved. After discussion, it was moved and seconded “that we readvertise at once for bids' for the construction work of Tangipahoa drainage district No. 1.”

This motion was lost by a vote of 3 to 2.

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

Related

State MacH. Sales v. Gravity Drainage 5
742 So. 2d 26 (Louisiana Court of Appeal, 1999)
Airline Const. v. Ascension Parish School Board
568 So. 2d 1029 (Supreme Court of Louisiana, 1990)
In Re Beychok
484 So. 2d 912 (Louisiana Court of Appeal, 1986)
Sutter Bros. Construction Co. v. City of Leavenworth
708 P.2d 190 (Supreme Court of Kansas, 1985)
Delta Air Lines v. City of New Orleans
430 So. 2d 1041 (Louisiana Court of Appeal, 1983)
Donahue v. BOARD OF LEVEE COM'RS OF ORLEANS, ETC.
413 So. 2d 488 (Supreme Court of Louisiana, 1982)
Donahue v. Board of Levee Commissioners
407 So. 2d 421 (Louisiana Court of Appeal, 1981)
Budd Const. Co., Inc. v. City of Alexandria
401 So. 2d 1070 (Louisiana Court of Appeal, 1981)
Haughton Elevator Division v. STATE, ETC.
367 So. 2d 1161 (Supreme Court of Louisiana, 1979)
Funderburg Builders, Inc. v. Abbeville County Memorial Hospital
467 F. Supp. 821 (D. South Carolina, 1979)
DJ Talley & Son, Inc. v. City of New Orleans
303 So. 2d 195 (Louisiana Court of Appeal, 1974)
GURTLER, HEBERT & CO., INC. v. Orleans Parish School Bd.
251 So. 2d 51 (Louisiana Court of Appeal, 1971)
W. R. Aldrich & Co. v. Gravity Drainage District Number 1
114 So. 2d 860 (Supreme Court of Louisiana, 1959)
Housing Authority v. Pittman Construction Co.
264 F.2d 695 (Fifth Circuit, 1959)
Pittman Const. Co. v. Housing Authority of Opelousas
167 F. Supp. 517 (W.D. Louisiana, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
105 So. 372, 159 La. 360, 1925 La. LEXIS 2239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sternberg-v-board-of-comrs-of-tangipahoa-drainage-dist-no-1-la-1925.