DocketNumber: No. CV 950374293
Citation Numbers: 1995 Conn. Super. Ct. 7580, 14 Conn. L. Rptr. 597
Judges: BARNETT, J.
Filed Date: 7/10/1995
Status: Non-Precedential
Modified Date: 7/5/2016
From the evidence, the court finds that the facts set forth below were established.
All orders and contracts for school building construction receiving state assistance under this chapter shall be awarded to the lowest responsible qualified bidder only after a public invitation to bid, which shall be advertised in a newspaper having circulation in the town in which construction is to take place, except those contracts or orders costing less than ten thousand dollars and those of an emergency nature, as determined by the commissioner of education, in which cases the contractor or vendor may be selected by negotiation, provided no local fiscal regulations, ordinances or charter provisions conflict.
Chapter VI § 4(c) of the charter of the Town of East Haven, entitled Bidding Requirements, reads in part that:
It is provided, however, that all purchases of and contracts for the purchase of personal property, including a continuing order or contract for more than one fiscal year, supplies, materials, equipment or contractual services, with the exception of professional services, and all sales of personal property and contractual services, which shall be made by or on behalf of the Town of East Haven, shall be made upon the basis of competitive bids when in the opinion of the Director of Finance said purchases or contracts to purchase or sales or contracts for sale shall involve the expenditure or receipt of more than $4,000.00 . . . . the Director of Finance shall invite sealed bids or proposals giving ten (10) days public notice thereof by publication at least once in the newspaper having circulation in the Town. All such CT Page 7582 sealed bids or proposals shall be opened publicly. With respect to purchase, the Director of Finance may accept the lowest responsible bid submitted or may reject all or any part of such bid or proposal. With respect to sales, the Director of Finance may accept the highest bid submitted or may reject all or any part of such bid or proposal.
In accord with the aforestated statutory and charter provisions the Town of East Haven issued an invitation to bid for, among others, Bid Package No. 10. The invitation stated that "Sealed bid proposals will be received until 2:00 P.M. on Friday, March 31, 1995, in the Office of the Finance Department, Lower Level, East Haven Town Hall, 250 Main Street, East Haven, CT 06512, and will be publicly opened and read aloud at East Haven Community Beach House, Cosey Beach Avenue at Intersection of Coe Avenue, East Haven, CT. Bids received after the time set for the opening will not be considered and will be returned unopened." Bid package No. 10 included both a Phase I and Phase II. Short descriptive terms for the two phases would be site work concrete for Phase I and building concrete for Phase II. At an earlier date, the Phase I work had been let out to bid separately. Pasquale Centore, Fusco's project manager, had in his budget at least $300,000.00 for the Phase I work. The lowest bid received, however, was $350,000.00 promoting the decision to include both phases in a single bid package.
Bob Forsyth was the estimator who prepared BBE's bid for Bid Package No. 10. Although the Construction Manager's written bidding requirements stated that Bid Package No. 10 encompassed both Phase I "Site Work Concrete" and Phase II "Building Concrete", Forsyth, before BBE's bid was submitted, called Fusco and spoke to either Pasquale Centore or someone named Smolin about whether Phase I was included. Forsyth made a note of his conversation after the bids were opened on March 31, 1995. Forsyth's estimate came to $1,720,501.00. Jim Eacott, the president of BBE reduced it to $1,704,000.00 and on March 31, 1995, submitted a bid in that amount.
When the bids were opened, BBE's bid of $1,704,000.00 was the lowest, the plaintiff's bid of $1,964,000.00 was second lowest and a bid submitted by Manafort in the amount of $1,978,500.00 was third lowest. CT Page 7583
On Monday, April 3, 1995 when Pasquale Centore was reviewing the opened bids prior to preparing a summary of them for the Town, he realized that the work to be done in Phase I had been omitted from BBE's low bid. This error was substantive as opposed to an arithmetic, typographical or clerical error. Jim Eacott called Pasquale Centore about the error on April 3. Centore suggested that BBE send a letter and he would discuss the matter with the appropriate persons from East Haven. The letter from BBE, dated April 3, addressed to Fusco and signed with Eacott's name admitted the omission of Phase I concrete work from the bid price. For relief, the letter suggested an upward adjustment in price or a withdrawal of the bid.
Centore "faxed" BBE's letter to Carl Tomchik, East Haven's Director of Finance. The Town's answer came in a letter written on April 4, 1995, denying the request of BBE to adjust or withdraw the bid.
Centore arranged a meeting on April 7, 1995 where he, Eacott, Attorney Albis, Town counsel, and Attorney Zullo, counsel to the School Building Committee, were present. At the meeting, BBE offered to do the work (Phase I and Phase II) for $1,900,000.00. In the afternoon of April 7, 1995, Centore informed Eacott that East Haven would be willing to accept a bid of $1,850,000.00. Eacott's response was "let's split the difference." Centore said to put it in writing whereupon Eacott sent by fax to Carl Tomchik a revised bid of BBE for Bid Package No. 10 in the amount of $1,872,500.00.
Manafort, the third lowest bidder on Bid Package No. 10, was doing excavation work at the East Haven High School site. Upon learning that BBE's bid contained a mistake, John Manafort told Pasquale Centore that if the plaintiff became the successful bidder, Manafort could garnishee monies that would be coming due to the plaintiff from East Haven. Paraphrasing John Manafort's words, he wanted East Haven to know that if Prete got the job, we would chase his compensation.
John Manafort gave Pasquale Centore some written materials concerning A. Prete Son Construction, Co., Inc. namely: three articles from the Middletown Press reporting disputes between the Town of East Haddam and A. Prete Son, Inc. as contractor for the construction of the new Hale-Ray High School, the eventual termination of that contract by the East Haddam School Building Committee and a threatened suit against East Haddam by A. Prete CT Page 7584 Son; a letter dated September 21, 1994 from the law firm representing East Haddam to the lawyer for Connecticut Waste Processing, Inc. stating that his client's remedy is against A. Prete and Aetna rather than against the Town; a letter dated August 22, 1994 from Aetna Casualty Surety Company to Manafort Brothers, Inc. disclaiming liability on a bond issued to A. Prete Son Construction Co., Inc. with the Town of East Haddam as obligee because the claim was not timely presented; a letter to Frank Manafort, Jr. from Attorney Haese concerning an apparent low bid by A. Prete Construction Co., Inc. on the Julia A. Stark Elementary School project in Stratford, plans to expand the scope of the present prejudgment remedy to include all ongoing Prete projects, plans to sue Aetna and the Town of East Haddam since Aetna refused to pay on the bond and the possibility of suing Neil Prete personally if he misrepresented on payment applications that subcontractors had been paid; copies of the complaint and application for a prejudgment remedy in a suit captioned ManafortBrothers, Inc. v. A. Prete Construction Co., Inc., where in Manafort asserted that it was a subcontractor for Prete in the East Haddam high school project and had not been paid. Centore, in turn, gave the written material to Attorney Zullo.
In addition to the newspaper advertisement for bids required by Gen. Stat. §
A subcontract agreement was prepared by BBE and sent to CT Page 7585 Manafort on May 22, 1995. The consideration recited in the agreement was $1,836,542.00 but the agreement has never been signed by either party. The permit fee and the bond premium paid by BBE were $18,730.00 and $17,228.00 respectively.
In his capacity as counsel for the East Haven School Building Committee, Attorney Zullo engaged Dun Bradstreet to do a financial investigation on each of the bidders including a check of Superior Court records. He also discussed with the town counsel for East Haddam the problems that had existed between that town and A. Prete Son Construction Co., Inc. At the Building Committee's meeting on April 24, 1995, Attorney Zullo discussed whether BBE's revised bid should be accepted. He informed the Committee that his review of the law demonstrated that an attempt by East Haven to collect on the 10% bond that accompanied BBE's initial bid would probably not be successful and that a court would probably allow BBE to withdraw its initial bid of $1,704,000.00.
With reference to the plaintiff, Attorney Zullo learned of a $4,000,000.00 foreclosure action against A. Prete Son Construction Co., Inc., the suit by Manafort against A. Prete Son Construction Co., Inc. and other pending collection cases involving A. Prete Son Construction Co., Inc. Before the Committee on April 24, 1995, Attorney Zullo never separated A. Prete Son Construction Co., Inc. from the plaintiff Prete Enterprises, Inc. although he knew there were two separate Prete corporations albeit operating out of the same address. Moreover, he erroneously told the committee that at least some of the claims against A. Prete Son had been reduced to judgments against "Prete" thus providing credence for the opinion that he expressed on April 24 that he had doubts as to the plaintiff's financial ability to perform. He did not know at the time that in the case of Manafort Brothers, Inc. v.A. Prete Construction Co. Inc., the parties had agreed that Manafort could garnishee $410,000.00 owed by the Town of East Haddam without contest.
The function of the East Haven School Building Committee, according to Attorney Zullo, was to provide a recommendation for Mr. Tomchik. On April 24, 1995, after hearing from Attorney Zullo that decisional law especially the case of Fred Brunoli Sons,Inc. v. Woodbury,
In the meantime, BBE was finalizing its arrangement with Manafort. Centore informed Zullo that Manafort was to serve as BBE's subcontractor on Bid Package No. 10 on May 10, 1995 although, as previously stated, no written contract has been executed. No notification of Manafort's subcontractor status was given to the East Haven School Building Committee. The contract forbid Package No. 10 Phase I and Phase II was signed on May 12, 1995 despite its recited date of April 28.
The General Conditions in the Contract for Construction are incorporated by reference into the contract between East Haven and BBE. Article 5 of the General Conditions requires a contractor to give written notice of subcontractors to the Construction Manager for review for possible objection by the construction manager, owner and architect. A similar incorporation by reference exists in the unsigned contract between BBE and Manafort which also states "If the principal contract requires that subcontract agreement shall be approved by the Owner, this Subcontract Agreement shall become valid only upon such approval." These formal requirements have not been followed.
Before the contract was signed, the plaintiff sent two letters protesting East Haven's post-bid dealings with BBE as being in contravention of public bidding law and practice. One letter dated April 28, 1995 was addressed to the chairman and members of the School Building Committee. The second letter dated May 3, 1995 added Attorney Zullo and Town Counsel Attorney Albis to the list of recipients. Neither letter caused any action to be taken by the Town of East Haven.
The General Conditions in the Contract for Construction obligated all bidders to keep their bids open for ninety days which gave East Haven up to ninety days to determine who would be the CT Page 7587 successful bidder. The contract with BBE for Bid Package No. 10 was signed on May 12, 1995 because of the work schedule established by Pasquale Centore. Manafort has started the concrete work which now is about 6% complete. The situation is that after BBE took out the permit and furnished the bond there has been a complete delegation of performance on Bid Package No. 10 to Manafort.
Further findings of fact will appear in subsequent sections of this memorandum.
"Standing" with respect to competitive bidding laws is not uniform among the states. Ardmare Construction Co. v. Freedman,supra at 505 n. 12. As a general rule, such laws are considered to have been enacted for the benefit of the public and not for the bidders. John J. Brennan Construction Corporation, Inc. v.Shelton,
Subsequently in Ardmare Construction Co. v. Freedman, supra at 501, our Supreme Court characterized its Spiniello decision as an exception to the general rule applicable only where the conduct of the bidding officials has been influenced by fraud, corruption or favoritism or when the very object and integrity of the competitive bidding process is defeated by the conduct of municipal officials. Still later, in Unisys Corporation v. Department of Labor,
Spiniello, Ardmare and Unisys either cited or referred with approval to Scanwell Laboratories, Inc. v. Shaffer,
A few years ago this court wrote "[i]n the determination of standing, the primary focus is on whether the party bringing the complaint, is the proper party to request an adjudication of the issue and not whether the issue itself is justiciable." CivilService Commission v. Pekrul,
III. CT Page 7589
When analyzed, the plaintiff's position is that upon BBE's notice of the mistake in its original bid, East Haven was given three discrete options. The town could either hold BBE to its low bid precisely as submitted, or reject BBE's submitted bid and select the plaintiff as the lowest responsible bidder or reject all bids and submit Bid Package No. 10 to a second round of bidding. Admittedly there is some authority for the plaintiff's point of view. E.g. see Harry Pepper Associates, Inc. v. City of CapeCoral,
In Matter of Fischbach Moore, Incorporated v. The New YorkCity Transit Authority,
Another instance involving post-bid negotiations is presented by Fabrizio Martin, Inc. v. Board of Education,
A comparison between Fabrizio Martin, Inc. v. Board ofEducation, supra and the instant case reveals a flaw in the plaintiff's proof. The plaintiff proved that BBE valued the work attributable to the missing portion of its original bid at $208,165.00 or $39,665.00 more than its revised bid of $1,872,500.00. Although labeling the amount of BBE's revised bid as contrived, the plaintiff failed to show that if the revised bid were increased by $39,665.00 to $1,912,165.00 it would have been interested.
Apparently when the lowest bidder makes a unilateral good faith mistake, Connecticut also permits negotiations between that bidder and the municipality. In the brief decision of Fred BunoliSons, Inc. v. Woodbury,
Upon a review of the evidence, the court concludes that as inFischbach Moore, supra; Fabrizio Martin, supra and apparently in Fred Brunoli Sons, supra, there was no showing of fraud, corruption or favoritism or of any action that would defeat the integrity of the bidding process from the publication of the invitation to bid until the bids were opened and BBE was declared the low bidder. Hence there is no ground for the issuance of an injunction. Ardmare Construction Co. v. Freedman, supra at 505. The court, of course, expresses no opinion as to whether the post-bid conduct of any of the agents of the defendants amounted to interference with a business expectancy of the plaintiff. SeeCT Page 7591Sportsmen's Boating Corporation v. Hensley,
Another reason to deny the injunction is that at the hearing the plaintiff did not establish itself as a responsible bidder as §
Statutes that require a public agency to award a contract to the lowest responsible bidder vest a wide discretion in the agency.Pioneer Co. v. Hutchinson,
In Connecticut, a party seeking injunctive relief has the burden of alleging and proving both irreparable harm and the lack of an adequate remedy at law. Berin v. Olson,
The court is well-aware that most jurisdictions prefer only injunctive relief and do not allow damages against a municipality in cases of misawards of public contracts. Annotation, Public Contracts: Low Bidder's Monetary Relief Against State or LocalAgency For Nonaward of Contract, 65 A.L.R. 4th 93 (1988); but cf.Marbucco Corp. v. City of Manchester,
COUCH CONST. CO., INC. v. Department of Transp. , 361 So. 2d 184 ( 1978 )
fabrizio-martin-incorporated-plaintiff-appellee-appellant-v-board-of , 523 F.2d 378 ( 1975 )
American Totalisator Co., Inc. v. Seligman , 489 Pa. 568 ( 1980 )
John J. Brennan Construction Corporation, Inc. v. Shelton , 187 Conn. 695 ( 1982 )
Scanwell Laboratories, Inc. v. John H. Shaffer, ... , 424 F.2d 859 ( 1970 )
Platt Electric Supply, Inc. v. City of Seattle , 16 Wash. App. 265 ( 1976 )
Aqua-Tech, Inc. v. Como Lake Protection & Rehabilitation ... , 71 Wis. 2d 541 ( 1976 )
Conway Corp. v. Construction Engineers, Inc. , 300 Ark. 225 ( 1989 )
Pioneer Co. v. Hutchinson , 159 W. Va. 276 ( 1975 )
Theurkauf v. Miller , 153 Conn. 159 ( 1965 )
Joseph Rugo, Inc. v. Henson , 148 Conn. 430 ( 1961 )
Berin v. Olson , 183 Conn. 337 ( 1981 )
Browning-Ferris Industries of Tennessee, Inc. v. City of ... , 1982 Tenn. App. LEXIS 498 ( 1982 )
Spiniello Construction Co. v. Town of Manchester , 189 Conn. 539 ( 1983 )
Civil Service Commission v. Pekrul , 41 Conn. Super. Ct. 302 ( 1989 )