V. S. DiCarlo General Contractors, Inc. v. Kansas City Area Transportation Authority

564 S.W.2d 588, 1978 Mo. App. LEXIS 2056
CourtMissouri Court of Appeals
DecidedApril 3, 1978
DocketNo. KCD 28235
StatusPublished
Cited by5 cases

This text of 564 S.W.2d 588 (V. S. DiCarlo General Contractors, Inc. v. Kansas City Area Transportation Authority) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
V. S. DiCarlo General Contractors, Inc. v. Kansas City Area Transportation Authority, 564 S.W.2d 588, 1978 Mo. App. LEXIS 2056 (Mo. Ct. App. 1978).

Opinion

ROBERT R. WELBORN, Special Judge Presiding.

This action began as a suit for declaratory judgment and injunction brought by Y. S. DiCarlo General Contractors, Inc., and Vernon L. Brown as joint venturers (DiCar-lo), seeking to have their bid on a construction project by the Kansas City Area Transportation Authority (KCATA) declared to be the lowest and best bid on the project, to require KCATA to enter into a contract for the job with DiCarlo and to enjoin the KCATA from contracting with any other bidder on the project. Other bidders, including Sharp Bros. Contracting Company and L. D. White Construction Company; Inc., a joint venture d/b/a “Sharp/White,” were parties defendant as was Mary H. Hayes, Director of the Department of Human Relations of the City of Kansas City.

Upon trial to the court, a decree was entered setting aside the award of the contract to Sharp/White and ordering KCATA to reconsider the bids and determine which contractor was the “lowest responsive bidder” and to enter into a contract with such contractor. Sharp/White have appealed.

KCATA is a governmental entity, organized by way of a compact between the States of Missouri (§ 238.010, et seq., RSMo 1969) and Kansas (KSA 12-2524, et seq. (1975)) to provide mass transit in the greater Kansas City area. KCATA planned to construct a general offices and central services facility in Kansas City. 80% of the funding for the project was to be provided by the Urban Mass Transit Authority (UMTA) of the United States Department of Transportation. The project was advertised for bids to be received and opened at 2:00 P.M., February 5, 1975. Among the requirements of the bidding proposal was that contractors submit in their bid documents evidence of intention to comply with affirmative action goals for employment of minority workers on the project. The KCATA affirmative action program involved setting aside for minority subcontractors eight designated areas of work on the project. Bids were required to include as part of the bid documents an affidavit from the bidder, setting out the name of the minority subcontractor with which the contractor would contract for various areas of the job and the estimated dollar value of the work in such areas so to be awarded.

UMTA had designated the Department of Human Relations of the City of Kansas City as its monitoring agency for compliance with federal minority regulations. That agency was also in charge of the locally ordained minority hiring program. Mary Hayes Walker was the Director of the Department of Human Relations.

Four general contractors submitted bids on the project (UMTA Project No. IT-03— 0020). The bids were opened and the gross amounts of each bid read as follows:

[590]*590J. E. Dunn, Jr. & Associates $9,825,200.00
Sharp/White $9,696,727.00
DiCarlo/Brown $9,487,700.00
Thomas Construction Company $9,320,000.00

The bids were studied by the architects and turned over to KCATA. Upon concluding that the Thomas bid was the lowest bid, the bid materials submitted by Thomas to evidence affirmative action compliance were referred to Ms. Hayes to determine whether or not Thomas’s bid was responsive to the requirement that the contractor submit an adequate Affirmative Action Assurance Plan. Ms. Hayes determined that the Thomas bid was unresponsive because Thomas had designated as a subcontractor for the electrical work, one of the set-aside areas, a non-minority contractor. Thomas requested permission to substitute a minority contractor, but after discussion with the architects, after receiving an opinion of an assistant city counselor and after discussion with KCATA attorneys, Ms. Hayes concluded that substitution after submission of the bid was not permissible.

KCATA, nevertheless, passed a resolution for award of the contract to Thomas. UMTA refused to concur in the award because the bid was not responsive to the affirmative action requirement.

KCATA then submitted the DiCarlo Affirmative Action Assurance to Ms. Hayes. She found the information submitted by that bidder unresponsive because the listed electrical subcontractor was a non-minority contractor.

Ms. Hayes examined the Sharp/White program and found it responsive. UMTA was so advised and on March 20, 1975, UMTA informed KCATA that UMTA would concur only in an award of the contract to Sharp/White, or alternatively that all bids should be rejected and the project readvertised. On the same date the KCA-TA commissioners passed a resolution for the award of the contract to Sharp/White.

DiCarlo filed its lawsuit on March 13, 1975. By its original petition it attacked the refusal of Hayes to find the DiCarlo bid responsive. Subsequently, DiCarlo filed an amended petition alleging deficiencies in Sharp/White’s proposal. Two individual DiCarlos joined the action as taxpayers.

Dunn as a contractor and taxpayer asked the court to enjoin issuance of any contract except to Dunn. Sharp/White moved to dismiss plaintiffs’ petition and Dunn’s counterclaim on the ground that the court had no jurisdiction of the cause and that the parties plaintiff had no standing to sue. The motion to dismiss was overruled.

By their answer Sharp/White restated the position that plaintiffs as unsuccessful bidders had no standing to sue. They also attacked the claim of plaintiffs as taxpayers and asserted that the UMTA was a necessary party to the litigation.

KCATA filed a general denial and also attacked plaintiffs’ standing to sue. Ms. Hayes also filed a general denial.

On July 15, 1975, KCATA signed a contract with Sharp/White for construction of the building.

This case came to trial on July 21, 1975. On that date, Sharp/White filed a counterclaim against DiCarlo, Dunn and Thomas, charging tortious interference with proposed and existing contractual relations of Sharp/White. It alleged damage of at least $80,000 per month by reason of rising construction costs. The trial court sustained objection to trial of the counterclaim and ordered it tried separately.

The case proceeded to trial. On August 13, 1975, the trial court entered its judgment in which it found, among other things, that the action of Ms. Hayes in “rejecting” the bids of Thomas and DiCarlo was illegal, arbitrary and beyond her authority, that the right to refuse bids was given exclusively to KCATA and that Ms. Hayes’s actions prevented KCATA from selecting the lowest and best bidder. The court voided the contract with Sharp/White and remanded the matter to KCATA to determine which of the four bidders was the lowest responsive bidder and for execution of a contract with such contractor. ¡1

On August 28, 1975, Sharp/White filed a voluntary dismissal, without prejudice, of its counterclaim. On August 29, 1975, [591]*591Sharp/White filed notice of appeal to this court.

The respondent Thomas has filed a motion to dismiss the appeal on numerous grounds, one of which is that the cause has become moot. In support of that motion, Thomas has presented the following additional facts, not contested by appellant.

Contemporaneously with the action in the Jackson County Circuit Court, the unsuccessful bidders filed a protest with the Comptroller General of the United States, complaining of the rejection of their bids and the acceptance of the Sharp/White bid.

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Bluebook (online)
564 S.W.2d 588, 1978 Mo. App. LEXIS 2056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/v-s-dicarlo-general-contractors-inc-v-kansas-city-area-transportation-moctapp-1978.