Tip Top Constructions Corp. v. Government of the Virgin Islands

60 V.I. 724, 2014 V.I. Supreme LEXIS 26
CourtSupreme Court of The Virgin Islands
DecidedApril 11, 2014
DocketS. Ct. Civil No. 2014-0006
StatusPublished
Cited by10 cases

This text of 60 V.I. 724 (Tip Top Constructions Corp. v. Government of the Virgin Islands) is published on Counsel Stack Legal Research, covering Supreme Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tip Top Constructions Corp. v. Government of the Virgin Islands, 60 V.I. 724, 2014 V.I. Supreme LEXIS 26 (virginislands 2014).

Opinion

OPINION OF THE COURT

(April 11, 2014)

Hodge, Chief Justice.

Appellant, Tip Top Construction Corporation (“Tip Top”), appeals the Superior Court’s January 22,2014 Order denying [727]*727its motion for a preliminary injunction. For the reasons that follow, we reverse and direct the Superior Court, on remand, to grant Tip Top’s motion.

I. BACKGROUND

The facts relevant to the sole issue on appeal are largely undisputed. On June 26, 2013, the Government of the Virgin Islands issued an Invitation for Bids for the “Main Street Enhancement Project.” This project, which relies exclusively on federal highway funds, is intended to beautify and improve the Main Street area of Charlotte Amalie, St. Thomas, by, among other things, replacing existing sidewalks and roadways and building new ones in their place, installing street furniture and historic street lamps, planting palm trees, creating new storm drains, and relocating and reconstructing utilities. Only two companies —Tip Top and Island Roads Corporation (“Island Roads”) — responded to the Invitation for Bids, with Tip Top submitting a bid of $8,441,108 and Island Roads responding with a bid of $10,377,620.

On October 31, 2013, the Evaluation Committee, consisting of seven voting and three non-voting members, reviewed both bids. The Evaluation Committee issued a November 8, 2013 Memorandum, which stated, in pertinent part, as follows:

The committee discussed the evaluation process and commenced reviewing the two (2) responses received and found Tip Top Construction (“Tip Top”) non-responsible for the proposed bid in the amount of Eight Million Four Hundred Forty-one Thousand One Hundred Eight Dollars and Zero Cents ($8,441,108.00) which was twenty percent (20%) lower than the Engineer’s Estimate of Ten Million Four Hundred Forty-four Thousand Five Hundred Seventy-five Dollars and Zero Cents ($10,444,575.00)[.] A large number of items submitted by Tip Top showed significant variance between their proposed bid and the Engineer’s Estimate making the bid mathematically unbalanced. Tip Top was also deemed non responsive for failure to sign their [Disadvantaged Business Enterprise (“DBE”)] Commitment Forms. The committee commenced the review of the one (1) remaining bid and determined that Island Roads Corporation was rendered responsive and responsible to the solicitation.

(J.A. 852.) Having rejected Tip Top’s bid, the Evaluation Committee recommended that the Government award the contract to Island Roads as the [728]*728sole “responsive and responsible bidder.” (J.A. 853.) The Acting Commissioner of Property and Procurement apparently concurred,1 and Tip Top was subsequently notified, by letter dated November 21, 2013, of the Government’s decision.

Tip Top filed suit against the Government on December 16, 2013, alleging that the Department of Property and Procurement improperly rejected its bid despite being the lowest responsive bidder. That same day, Tip Top filed a motion for a temporary restraining order (“TRO”) and preliminary injunction, which requested that the Superior Court enjoin the Government from entering into a contract with Island Roads. The Superior Court granted the request for a TRO in a December 19, 2013 Order, and scheduled a preliminary injunction hearing for December 30, 2013.

At the December 30, 2013 hearing, Tip Top presented testimony from two of its employees, Veronica Francis and Joseph Hollins. Afterwards, the Superior Court considered testimony from four of the Government’s witnesses, all of whom served on the Evaluation Committee. Nicole Roberts, who served as Chair of the Evaluation Committee, testified generally to the rules and procedures that govern the process for receiving and evaluating bids, and through her testimony the Government introduced into evidence, as Exhibit 6, a copy of the November 8, 2013 Memorandum with the Commissioner’s signature. Roberts testified that the Evaluation Committee’s decision had been unanimous, and, without providing any further elaboration, reiterated that Tip Top’s bid had been rejected both as mathematically unbalanced and for lacking a signature on a subcontractor’s DBE form. Michael Farrington, a non-voting member, testified that he had discovered during the evaluation process that one of Tip Top’s subcontractors had not signed the DBE form, and that he therefore believed Tip Top’s submission had been incomplete, but did not testify to any other matters with respect to Tip Top’s bid.

[729]*729Wystan Benjamin, a voting member, provided more detailed testimony as to why the Evaluation Committee purportedly rejected Tip Top’s bid. Although the November 8, 2013 Memorandum only gave two reasons — mathematical unbalance and the lack of a signature on the subcontractor’s DBE form — for rejecting Tip Top’s bid, Benjamin provided several additional reasons for the rejection, including (1) concern that the project would be almost exclusively performed at night, (2) that Tip Top might modify the contract at some future date to increase the costs, (3) the overall importance of Main Street to the Virgin Islands economy and the urgency of that the project be completed on time, and (4) “that Tip Top doesn’t really know what ... is required for this particular job.” (J.A. 319.) Additionally, unlike the November 8, 2013 Memorandum, Benjamin identified, and discussed, specific line-items in Tip Top’s bid that he believed were mathematically unbalanced. Finally, Nelson Petty, another voting member who also prepared the engineer’s estimate, testified that the Evaluation Committee was particularly concerned with three items in Tip Top’s submission — “[t]he brick pavers, the sidewalks, and the concrete pavement.” (J.A. 363.)

The Superior Court, in a December 31, 2013 Order, extended the TRO to January 21, 2014. On January 22, 2014, the Superior Court declined to further extend the TRO, denied Tip Top’s motion for a preliminary injunction, and advised that an opinion explaining the reasons for the decision would follow. Tip Top filed its notice of appeal with this Court on January 27, 2014, and on January 31, 2014, moved this Court for an injunction pending appeal. This Court, in a January 31, 2014 Order, extended the TRO through February 14, 2014, in order to provide this Court with sufficient time to consider Tip Top’s motion, and for the Superior Court to issue its promised written opinion.

The Superior Court, in a February 7, 2014 Opinion, explained the reasons for its January 22, 2014 Order. In its Opinion, the Superior Court found that Tip Top satisfied three of the four requirements for issuance of a preliminary injunction, and rejected the Government’s argument that the absence of a subcontractor’s signature on a single form justified the rejection of Tip Top’s entire bid as unresponsive. Nevertheless, the Superior Court denied the preliminary injunction because it concluded that Tip Top had little likelihood of succeeding on the merits. Specifically, the Superior Court credited Benjamin’s oral testimony as to the additional reasons why the Evaluation Committee rejected Tip Top’s bid, and [730]*730concluded that his testimony provided a rational reason for the Government to reject its bid notwithstanding the fact that it was the lowest responsive bidder. This Court, in a February 14, 2014 Order, granted Tip Top’s motion for an injunction pending appeal. Tip Top Constr. Corp. v. Gov’t of the V.I., 60 V.I. 726 (V.I. 2014) (unpublished).

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Bluebook (online)
60 V.I. 724, 2014 V.I. Supreme LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tip-top-constructions-corp-v-government-of-the-virgin-islands-virginislands-2014.