Syringa Networks, LLC v. Idaho Department of Administration

367 P.3d 208, 159 Idaho 813
CourtIdaho Supreme Court
DecidedMarch 1, 2016
Docket43027
StatusPublished
Cited by27 cases

This text of 367 P.3d 208 (Syringa Networks, LLC v. Idaho Department of Administration) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Syringa Networks, LLC v. Idaho Department of Administration, 367 P.3d 208, 159 Idaho 813 (Idaho 2016).

Opinion

J. JONES, Chief Justice.

This case involves a second set of appeals arising from an action challenging the bidding process for the Idaho Education Network (“IEN”). Syringa Networks, LLC, sued Qwest Communications, LLC, ENA Services, LLC, and the Idaho Department of Administration (“DOA”) and certain DOA employees, alleging injury arising from contract awards and amendments that DOA issued to Qwest and ENA related to the IEN. The district court dismissed all of Syringa’s claims. On appeal we held that Syringa had standing to pursue Count Three, which alleged that DOA violated Idaho Code section 67-5718A. Count Three was remanded to the district court for further proceedings.

On remand, the district court entered partial summary judgment for Syringa on Count Three, holding that the amendments and the underlying contracts were void for violating state procurement law. The district court denied Syringa’s motion to order DOA to demand repayment of money advanced under the void contracts. The district court also awarded Syringa attorney fees.

Syringa, Qwest, ENA, and DOA each timely appealed. Syringa appeals the district court’s denial of its request to order DOA to demand repayment from Qwest and ENA. The other parties appeal the district court’s grant of partial summary judgment to Syringa, arguing that the district court’s conclu *818 sions were procechirally improper and substantively incorrect for a variety of reasons. DOA also challenges the district court’s award of attorney fees to Syringa. Syringa, ENA, and DOA request attorney fees on appeal.

I.

FACTUAL AND PROCEDURAL BACKGROUND

The IEN was to be “a high-bandwidth telecommunications distribution system for distance learning” in public schools, libraries, and state agencies. Syringa Networks, LLC v. Idaho Dep’t of Admin., 155 Idaho 55, 58, 305 P.3d 499, 502 (2013) [hereinafter “Syringa I ”]. DOA was given administrative oversight of the IEN, including “[p]rocur[ing] telecommunications services and equipment for the IEN through an open and competitive bidding process.” Id. (citing I.C. § 67-5745D(5)(h) (subsection repealed 2010)). In 2008, DOA issued a request for proposals (“RFP”) for work on the IEN, seeking only comprehensive, end-to-end bids. Syringa could not provide end-to-end services so it agreed to be a subcontractor on the bid submitted by ENA. In January 2009, DOA issued substantially identical Statewide Blanket Purchase Orders (“SBPOs”) to Qwest and ENA as a “multiple award” under Idaho Code section 67-5718A. In February 2009, DOA unilaterally amended both SBPOs to assign some portions of the IEN work exclusively to ENA and other portions exclusively to Qwest. Under the amendments, Qwest was to provide all IEN technical network services and ENA was to be the service provider listed on the State’s federal E-Rate form. The amendments assigned to Qwest all of the work that Syringa had planned to do as ENA’s subcontractor.

Syringa brought suit against Qwest, ENA, DOA, and certain DOA employees. Syringa alleged that DOA violated Idaho Code section 67-5718A, a multiple award procurement statute, when it amended Qwest’s SBPO. Among other claims, Syringa also alleged breach of contract against ENA. The district court dismissed all of Syringa’s claims. On appeal in Syringa I, we reinstated Count Three of Syringa’s original complaint, regarding DOA’s alleged violation of the multiple award procurement statute. Id. at 60-62, 305 P.3d at 504-506.

In Syringa I, after reviewing the facts alleged, we vacated the district court’s summary judgment holding that Syringa had failed to exhaust its administrative remedies and held that Syringa had standing to bring Count Three “when the amendments to the contracts are viewed in the context of the entire bidding process.” Id. at 61, 305 P.3d at 505. We then concluded that “Syringa has alleged a distinct and palpable injury ... that is alleged to have been caused by the challenged conduct and that can be redressed by judicial relief.” Id. at 62, 305 P.3d at 506. We remanded Count Three for further proceedings. Id. at 68, 305 P.3d at 512.

On remand, the district court permitted Syringa to amend its claim in Count Three: (1) to add specific references to Idaho Code section 67-5718, the statute this Court considered in Syringa I; (2) to make a specific reference to the amended awards to Qwest and ENA; and (3) to seek a ruling that the awards are void as a matter of law. On reconsideration, the district court vacated its prior ruling to the extent that it had granted “leave for Syringa to challenge the original SBPOs.” The court found that Syringa had previously conceded that the original SBPOs were lawful, and it concluded that judicial estoppel precluded Syringa from subsequently challenging them.

The district court found that ENA and Qwest were necessary parties, although it also found that ENA was no longer a party on remand because all claims against it in the original complaint had been fully resolved. The court further concluded that ENA must be made a party and that Qwest remained a party. The court ordered Syringa to serve ENA with an amended pleading, which Syringa did.

Syringa filed a motion for partial summary judgment, seeking a determination that the SBPOs were void. ENA filed a motion to dismiss in which it argued the court lacked jurisdiction over it. DOA also filed a motion for summary judgment in which Qwest joined, arguing that the case was moot be-

*819 cause DOA, Qwest, and ENA had rescinded the SBPO amendments. Following briefing, the district court took up these motions on October 10, 2014. The court treated ENA’s motion to dismiss as a motion for summary judgment because it concluded that the motion involved consideration of matters outside the pleadings. After determining that all necessary parties had been joined and the court had jurisdiction, and despite its prior holding that Syringa was estopped from challenging the original SBPOs, the district court nonetheless ultimately concluded that the SBPOs, as amended, were void. In granting partial summary judgment to Syringa, the district court relied on the law of the ease doctrine and the doctrine that Idaho courts have an affirmative duty to raise the issue of contract illegality regardless of whether any party had pled the issue. The district court held that our statements in Syringa I that DOA violated state procurement law were the law of the case and were binding upon the parties and the district court. Referring to its perceived duty to raise the issue of illegality, the district court held that it may not ignore the issue or countenance the continuation of contracts that resulted from violation of state procurement law. The court also found that because the SBPOs were void, DOA’s attempt to moot the case by rescinding the amendments was futile. The court rejected ENA’s arguments that res judicata or judicial estoppel precluded a holding that the SBPOs are void.

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Cite This Page — Counsel Stack

Bluebook (online)
367 P.3d 208, 159 Idaho 813, Counsel Stack Legal Research, https://law.counselstack.com/opinion/syringa-networks-llc-v-idaho-department-of-administration-idaho-2016.