Dana, Larson, Roubal and Associates v. Board of Com'rs of Canyon County

• Decision Date: 01 October 1993
• Docket Number: No. 19321,19321
• Citation: 864 P.2d 632,124 Idaho 794
• Parties: DANA, LARSON, ROUBAL AND ASSOCIATES, a corporation; CSHQA Architects, a professional corporation; Lombard-Conrad Architects, P.A., a professional corporation; Phelps, Inc., a corporation; ABC Corporation; XYZ Corporation; and John Doe I, John Doe II, and John Doe III, Plaintiffs-Appellants, v. The BOARD OF COMMISSIONERS OF CANYON COUNTY, Idaho; and Joyce M. Chase, Carlos E. Bledsoe and Glenn O. Koch, individually and as members of the Board of Commissioners of Canyon County, Idaho, Defendants-Respondents.
• Court: Idaho Court of Appeals

Page 632

864 P.2d 632

124 Idaho 794

DANA, LARSON, ROUBAL AND ASSOCIATES, a corporation; CSHQA Architects, a professional corporation; Lombard-Conrad Architects, P.A., a professional corporation; Phelps, Inc., a corporation; ABC Corporation; XYZ Corporation; and John Doe I, John Doe II, and John Doe III, Plaintiffs-Appellants, v. The BOARD OF COMMISSIONERS OF CANYON COUNTY, Idaho; and Joyce M. Chase, Carlos E. Bledsoe and Glenn O. Koch, individually and as members of the Board of Commissioners of Canyon County, Idaho, Defendants-Respondents.

No. 19321.

Court of Appeals of Idaho.

Oct. 1, 1993.

Petition for Review Denied Dec. 28, 1993.

Lojek, Gabbert & Strother, Chd., Donald W. Lojek, Boise, argued for appellant.

Hamlin & Sasser, James D. Carlson, Boise, argued for respondent.

WALTERS, Chief Judge.

The appellants in this case (Dana, Larson, Roubal and Associates, and other corporations) are several architectural and engineering firms which claim that the district court erred when it granted summary judgment dismissing their complaint against the Board of Commissioners of Canyon County (respondents). The appellants assert that they were denied a property interest in violation of 42 U.S.C. § 1983 and that the respondents breached an implied contract by allegedly changing the rules for responding to a "Request for Proposal" (RFP) to build a new county jail. The appellants claim they were damaged in the amount they spent preparing their responses to the RFP, approximately $71,000 collectively. We affirm.

Facts and Procedural Background

Because Canyon County's old jail was declared overcrowded and unsafe, the respondents decided to build a new one. A jail task force was convened, and the respondents gathered information and toured jail sites in other states. In January, 1989, they published an RFP to "solicit proposals for replacement" of the existing jail and to "enable the Board ... to receive information" on a "turn key" proposal, that is, one which would see the project through from planning to completion. The respondents determined that they could spend 5.5 million dollars to build the new jail but did not express this figure in the RFP. The RFP called for what is known as a "new generation jail" which would allow centralized, indirect supervision of inmates and minimal staffing. Recognizing that they did not have the expertise to plan the project in detail, the respondents adopted a "design-build" method for construction as authorized in I.C. § 67-2309, requiring the builder to take the project from site preparation to a finished, furnished building. The RFP stated:

Upon receipt ... [proposals] ... shall become the property of Canyon County without compensation to the proponent for use or disposition by the Board in its discretion.... The County reserves the right to accept or reject any or all proposals received or any parts thereof, or to negotiate separately with any source whatsoever if no acceptable proposals are submitted in order to best serve the interests of Canyon County. The RFP is made for information and/or planning purposes only and does not obligate or bind the County contractually to accept any proposal submitted. Subsequent procurement if any will be in accordance with appropriate County contractual action,.... However, the final award ... is contingent upon the successful negotiation of a contract.

The appellants, as individual corporations, submitted proposals to the respondents. The jail task force recommended that none of the four proposals be accepted, however, it orally recommended that the proposals from the Russell Corporation (Lombard-Conrad Architects) and Western Corrections Group (WCG) be further considered. The respondents evaluated the proposals and focused on those submitted by the Russell Corporation and WCG. The respondents visited construction projects by these two groups and decided that the Russell Corporation plan was not suitable because it was based on the penitentiary the company had built outside of Boise, was too big, was not a "new generation" jail, and was not tailored to the County's needs. The other proposals submitted by the appellants were rejected on the basis that they cost too much, were too big, required higher staffing levels and labor costs, had no video monitoring, or were not "new generation" designs. The WCG proposal was accepted, however, and on July 6, 1989, the respondents negotiated a contract with WCG for the design and construction of the jail.

A short while later, the respondents learned they could not contract with WCG because the latter was not licensed to perform public works contracts in Idaho. The respondents, under time pressure due to a federal lawsuit about conditions in the existing jail, wanted to move the project along quickly. Convinced that WCG presented the best proposal and that WCG's representative, Mr. O. Wesley Box, worked best with the respondents, the respondents rescinded the contract and entered into a personal services contract with Mr. Box on September 11, 1989. The contract provided that Mr. Box would be the County's consultant, representative, and assistant to coordinate the construction, planning, and development of the project. The respondents did not announce publicly that they were recruiting a project coordinator. Despite allegations that Mr. Box had misrepresented himself and was not qualified, the respondents performed their own evaluation of Box and became satisfied with their choice. After his selection, the respondents publicly solicited construction bids from contractors, as required by law, and selected a local architect who drew up plans for the jail.

After learning that their proposals had been rejected in favor of a personal services contract with Mr. Box, the appellants filed a complaint in district court on November 29, 1989. They claimed, among other things, a violation of 42 U.S.C. § 1983 in that the respondents deprived them of a protected property interest in the preparation of their proposals and the expectation that the proposals would be considered according to the procedures announced in Idaho's competitive bidding statute, I.C. § 31-1003. They also argued that the respondents breached an implied contract by not dealing with the appellants in good faith. On December 18, 1990, the district court ruled for the respondents on both claims and an order awarding summary judgment was filed on April 23, 1991.

Standard of Review

Summary judgment is appropriate only when there are no genuine issues of material fact and the case can be decided as a matter of law. I.R.C.P. 56(c); Moss v. Mid-American Fire and Marine Insurance Co., 103 Idaho 298, 302, 647 P.2d 754, 758 (1982); Whitlock v. Haney Seed Co., 110 Idaho 347, 348, 715 P.2d 1017, 1018 (Ct.App.1986). Where, as here, a jury has been requested, the nonmoving party is entitled to the benefit of reasonable inferences drawn from the evidentiary facts. Anderson v. Ethington, 103 Idaho 658, 660, 651 P.2d 923, 925 (1982); Whitlock, supra. The facts are drawn from a review of the record, consisting of the motions, pleadings, affidavits, depositions, and admissions on file. I.R.C.P. 56(c); Moss, supra. Controverted facts are viewed in favor of the party resisting the motion. Whitlock, supra.

The party opposing the motion may not merely rest on the allegations contained in its pleadings. It must produce evidence by way of affidavit or deposition to contradict the assertions of the moving party. I.R.C.P. 56(e); Worthen v. State, 96 Idaho 175, 176, 525 P.2d 957, 958 (1974). Raising the slightest doubt as to the facts is insufficient--a genuine issue of material fact must be presented. LePelley v. Grefenson , 101 Idaho 422, 428, 614 P.2d 962, 968 (1980). Disputed facts will not defeat summary judgment when the party opposing the motion fails to establish the existence of an essential element of its case. Badell v. Beeks, 115 Idaho 101, 102, 765 P.2d 126, 127 (1988)citing Celotex v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Garzee v. Barkley, 121 Idaho 771, 774, 828 P.2d 334, 337 (Ct.App.1992). "In such a situation, there can be 'no genuine issue of material fact,' since a complete failure of proof concerning an essential element of the nonmoving party's case necessarily renders all other facts immaterial." Id.

42 U.S.C. § 1983

The appellants allege a property interest in having their proposals examined according to the standards enunciated in Idaho's competitive bidding statutes. They argue that the statutes "do not sanction totally arbitrary bid selections founded on impermissible criteria" and that entering into the personal services contract with Mr. Box was an attempt to evade the competitive bidding statutes and was contrary to public policy.

First, we note that although 42 U.S.C. § 1983 ¹ provides a remedy for violation of federally protected rights, a state court has jurisdiction to entertain claims brought under the statute. See, e.g., Scott v. Buhl Joint School District No. 412, 123 Idaho 779, 852 P.2d 1376 (1993); Shields v. Martin, 109 Idaho 132, 706 P.2d 21 (1985). There are two threshold requirements for a " § 1983" claim. First, a person must act under color of state law when committing the challenged act. Second, the claimant must establish that the conduct deprived the claimant of a constitutionally protected right, privilege, or immunity. Leer v. Murphy, 844 F.2d 628, 632-33 (9th Cir.1988), citing Parratt v. Taylor, 451 U.S. 527, 535, 101 S.Ct. 1908, 1913, 68 L.Ed.2d 420 (1981).

It is undisputed that the respondents were acting under color of state law when performing the actions of which the appellants complain. The appellants challenge the district court's determination that it was unreasonable, given the language of I.C. § 31-1003 ² and the RFP, for the "bidder" submitting the proposal to believe itself to be the possessor of a constitutionally protected property interest addressed by § 1983.

Our ...