Woodruff v. Berry

40 Ark. 251
Supreme Court of Arkansas·Decided November 15, 1882·Published·Cited by 18 cases

Opinion

Smith, J.

The Board of’ Commissioners to superintend the letting of public contracts, ■ consisting of tbe Governor, Auditor and Treasurer, advertised for thirty days, that they would down to a certain time, receive sealed proposals for tbe public printing during tbe years 1883 and 1884. Tbe Union Printing Company, tbe firm of Smifchee and Newman, tbe firm of Mitchell & Bettis, and George Woodruff, submitted separate bids for said printing. Tbe bids were all rejected, tbe Board being apparently unable to determine who was tbe lowest bidder. This was on tbe 30th of June, 1882. They then gave notice for ten days that proposals for printing and printing material would be received until 10 a. m., of July 10th. Thereupon the above mentioned four bidders entered into an agreement that a bid should be made in the name of George Woodruff, for the joint and equal benefit of them all. 'Upon this bid the contract was awarded to him, and on tbe first of January, 1883, be entered upon tbe performance of said contract. ' He died on tbe 27th of January, 1883, and letters of administration were granted to tbe appellant. On tbe 21st of February, 1883, the Legislature disaffirmed this contract, assigning for its reason that the statutory notice of the letting had not been given, and directing the Board to relet the contract. The Board published an advertisement inviting proposals, whereupon the administrator of George Woodruff filed the present bill to restrain the members of the Board from letting said contract anew, or otherwise interfering with the plaintiff in the performance of his intestate’s contract.

The defences were, 1st., the want of due' and legal notice of the letting of the contract, and 2nd, that the combination of persons interested in Woodruffs bid was unlawful and contrary to public policy, tending to stifle fair competition in the bidding and causing loss to the State in the increased cost of the public printing.

The Chancellor denied the writ of injunction and dismissed the bill.

Sec. 15 of Art. XIX, Constitution of 1874, provides that the public printing “shall be performed under contract, to be given to the lowest responsible bidder, below the maximum price and under such regulations as shall be prescribed by law.”

The act of Nov. 28, 1874, directs that such contracts shall be let to the lowest responsible bidder for the term of two years, and that notice of the lettings shall be published for thirty days in one or more daily and weekly newspapers printed at the capitol of the State, of most extensive circulation throughout the . city and State, at least six months before the expiration of the existing contract, in order that the new contractor may have sufficient time to become fully prepared to enter promptly upon his duties. A maximum rate is established, and any proposal in excess of such rate is not to be entertained. All printing is to be done within the State. Sec’s. 8, 4, 10 and 20.

Sec. 1 of the amendatory act of March 17, 1879, enjoined it upon the board to contract for lower rates than the maximum, if possible, and authorized them to reject each and every bid, if they deemed them too high and to let the contract anew.

The end proposed in the constitutional provision requiring public contracts to be let to tbe lowest bidder is public economy. And tbe means provided by tbe Legislature is an extended notice in the public journals so as to ensure publicity and secure competition. The established policy of the'State upon this subject is, that public contracts are to be let upon public notice, and to be open to competition upon proposals and are to be made with the lowest bidder who can give due security. The entire authority of the board to let such contracts is conferred by statute, and the statute prescribes how only they can contract. Any other contract is unauthorized, in excess of the powers vested in the board and voidable at the election of the State. Dickinson v. Poughkeepsie, 75 N. Y., 65; Kneeland v. Milwaukee, 18 Wis., 411; Wells v. Burnham, 20 Id., 112.

In Woodward v. Commissioner State Lands, 39 Ark., we held in effect that individuals as well as Courts must take ncdice of the extent of authority conferred by law upon persons acting in an official capacity. It is better that an individual should occasionally suffer from the mistakes of public officers or agents than to adopt a rule which, through improper combinations or collusion, might be turned to the detriment or injury of the public. Mayor v. Eschback, 17 Md., 282; Whiteside v. United States, 93 U. S., 257; Hawkins v. United States, 96 U. S. 689.

Now if the board had assumed to let this contract without any public notice whatever, it is obvious that they would not have pursued their statutory powers, but would have exceeded the same. Maxwell v. Stanislans County, 53 Cal., 389.

But the argument is, that having once given thirty .days notice of the letting and having rejected all bids that were presented in response to the invitation, they were.-at liberty to invite further bids until a future day certain, dispensing with further notice or giving a shorter notice than the statute required; and their action in soliciting proposals to the 10th of July was a continuation of the former proceedings, like the adjournment or postponement of a Sheriff’s or Master’s sale.

All of the eases on this head cited by appellant are cases either of execution or of judicial sales. To prevent the sacrifice of property at forced sales, the officer is invested with a pretty large discretion and in the exercise of that discretion, may adjourn the sale. And as to the character of the notice to be given of the time to which the adjournment is made, the weight of authority is that notice may be given by proclamation made in the presence and hearing of the people assembled at the time first fixed for the sale. However, several respectable Courts have maintained that a new notice must be given, for the time and in the manner required in the first instance. The cases are collated in Freeman on Executions, sec. 288.

But we apprehend that the analogy between such cases and the present one is very imperfect. The defendant in execution may move the Court out of which it issued, to set the sale aside for irregularities that have operated to his prejudice; and perhaps the officer maybe liable on his bond for any abuse of his discretion in postponing the sale. In judicial sales, the case is still stronger; for they are conducted by an officer who is subject to the control of the Court and they are never final until the Court sanctions them.

This case is more nearly associated to the case of a sale under a power contained in a mortgage or deed of trust where the instrument itself or a statute of the State requires a certain notice to be given of the execution of the power. In that case a sale without notice or upon shorter notice than is required by the terms of the deed or statute is absolutely void, conveys no title and does not divest the equity of redemption. Lawrenee v. Loan and Trust Co., 13 N. Y., 200; Bigler v. Waller, 14 Wall, 297; Shillaber v. Robinson, 97 U. S., 68.

In Mitchell v.

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Woodruff v. Berry, 40 Ark. 251 (Ark. 1882).

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