La Mar Const. Co. v. Holt County, R-II School Dist.
| Decision Date | 12 October 1976 |
| Docket Number | No. KCD27729,R--II,KCD27729 |
| Citation | 542 S.W.2d 568 |
| Parties | LA MAR CONSTRUCTION COMPANY, Appellant, v. HOLT COUNTY,SCHOOL DISTRICT, Respondent. |
| Court | Missouri Court of Appeals |
Alan E. South, Crews & Milliard, Kansas City, for appellant.
Wilcox & Houts, St. Joseph, for respondent.
Before SHANGLER, P.J., and HANNA, O'LEARY and L. SMITH, Special Judges.
The respondent Holt County, R--II School District (referred to as the School District) wanted to add a new gymnasium and a classroom to the Mound City High School. It advertised for bids pursuant to Section 177.086 RSMo 1969. The 'Notice to Bidders' complied with the statute and specified as follows: 'The owner reserves the right to reject any or all bids and to waive any or all formalities'. In response to this invitation the School District received four bids from various construction companies and the bid submitted by plaintiff, La Mar Construction Company (referred to as La Mar) was the lowest. The School District's Board of Education discussed the bids, the capacity of the companies submitting the bids, their experience, their performance and the time element for completing the construction and other matters. The contract was awarded to the Glaze Construction Company who was a defendant in the trial court. The trial court sustained the Motion for Summary Judgment in favor of the defendant Glaze Construction Company and that matter has not been appealed to this court.
The plaintiff's Petition for Damages alleges in substance that it is a Missouri corporation engaged in the construction business in this state, that bids were advertised for, four bids were made, that La Mar was the lowest responsible bidder, but regardless of that fact, the contract was awarded to the Glaze Construction Company. It characterizes the School District's award of the contract to Glaze as arbitrary, capricious and unlawful and prays for the affirmative relief that damages be awarded plaintiff La Mar, or alternatively, that the contract awarded to the Glaze Construction Company be cancelled and the contract awarded to plaintiff.
The trial court sustained the School District's Motion for Summary Judgment.
The issue, simply stated is: Does the low and unsuccessful bidder have a cause of action against the School District for money damages where the School District by its invitation to bid by statute reserves the right to reject any and all bids? We find that in such a situation the answer must be in the negative and therefore affirm the judgment of the trial court.
The applicable statute, under which the bids were advertised is Subsection 2 of Section 177.086 RSMo 1969, and provides:
(Emphasis added.)
La Mar has not and cannot state a cause of action because it cannot allege a special pecuniary interest in the matter, showing a clear legal right to the relief asked because the rejection of its bid did not give it any private right which it could enforce for two reasons. The first problem plaintiff faced was that the advertisement in the newspaper requesting bids was an invitation to bid and did not contemplate an acceptance, in a contractual sense, by a submission of a bid in response to that invitation. Secondly, the statute clearly is intended to safeguard the interest of the public and is not designed to shelter the rights of individuals, i.e., the unsuccessful bidder.
It is noted that the advertisement of the bids is headed 'Notice to Bidders' and invites bids to be received by the Board of Education, Holt County, R--II School District at a specified time. The tenor of the advertisement clearly displays an intent to invite bids, or stated another way, invite offers, as distinguished from an intent to propose a contract for a direct acceptance. If there remains any doubt, the reservation that the School District makes to reject any and all bids resolves that matter. It is an invitation or an opening of negotiations to contract to which La Mar responded by making a bid (offer) and which was not accepted (in the contractual sense) by the School District. Since the School District did not accept the offer of La Mar, no contract has been made, and the rejected or unsuccessful bidder obtains no justiciable property right or any vested interest in the matter.
This matter was laid to rest by our Supreme Court in the case of Anderson et al. v. Board, etc.; of Public Schools, 122 Mo. 61, 27 S.W. 610, 612 (1894) where the court said: 'That advertisement was not an offer of a contract, but an offer to recive proposals for a contract.' Further, the Court went on to state that...
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...bidder obtains no justiciable property right or any vested interest in the matter." La Mar Construction Co. v. Holt County, R-II School District, 542 S.W.2d 568, 570 (Mo.Ct.App.1976). Nevertheless, Plaintiffs claim that K.C. had a "reasonable expectancy" of receiving the work based upon "mu......
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