Westway Construction, Inc. v. Idaho Transp. Dept.
| Decision Date | 11 July 2003 |
| Docket Number | No. 28464, No. 28484. |
| Parties | WESTWAY CONSTRUCTION, INC., Plaintiff-Appellant, v. IDAHO TRANSPORTATION DEPARTMENT, Defendant-Respondent. Idaho Transportation Department, Third-Party Plaintiff-Respondent, v. United States Fidelity and Guaranty Company, Third-Party Defendant-Appellant. |
| Court | Idaho Supreme Court |
Dunn & Black, P.S., Spokane, for appellant Westway Construction, Inc. Richard D. Campbell argued.
Cosho, Humphrey, Greener & Welsh, Boise, and Stewart Sokol & Gray, LLC, Portland, Oregon, for appellant United States Fidelity and Guaranty Company. Jan D. Sokol argued.
Hon. Lawrence G. Wasden, Attorney General, Boise, for respondent Idaho Transportation Department. Steven M. Parry argued. EISMANN, Justice.
This is an appeal from a judgment upholding the forfeiture of a bid bond submitted by a bidder on a public works contract and holding the surety liable for the face amount of the bond. We vacate the judgment because the parties did not exhaust their administrative remedies.
On May 10, 2000, the Idaho Transportation Department (ITD) advertised for bids for a federal-aid highway project to be constructed in Bonner County, Idaho. The time for opening the bids was scheduled for 2:00 p.m. on June 8, 2000. During the morning of June 8, 2000, Westway Construction, Inc. (Westway) submitted a bid, which was accompanied by a bid bond1 that had been issued by United States Fidelity and Guaranty Company (USF & G). Prior to submitting its bid, Westway had received bids from two asphalt subcontractors, namely, Interstate Concrete & Asphalt Co. (Interstate) and Acme Materials & Construction Co. (Acme). It based its bid calculations upon the bid it had received from Interstate because its total bid was lower than Acme's total bid.
After Westway had submitted its bid, Interstate faxed it a revised subcontractor bid, changing the prices on several items in its bid. One of the items entitled "Plant Mix Pavement Class I" was increased from $690,750.00 in Interstate's original bid to $825,750.00 in its revised bid. That same item in the Acme bid was listed as $684,000.00. Westway contends that it then prepared a revised, lower bid using some figures from the Interstate bid and some from the Acme bid. Westway submitted its revised bid prior to the bid opening, and it was the low bid.
On June 9, 2000, Westway sent the ITD a letter asking to withdraw its revised bid based upon a mistake. It contends that it had misread Acme's bid for the plant mix pavement. Acme had listed the bid item as
"Plant Mix Pavement Class I (plus rock)." Acme intended the words "plus rock" to mean that the mineral aggregate (rock) was excluded from the bid. Obtaining the necessary mineral aggregate would cost Westway approximately $210,150.00.
On June 14, 2000, the ITD responded by letter advising Westway that "there appears to be no question that a mistake was made and therefore withdrawal of the bid is allowed." The letter added, however, "Your letter and attachments will be turned over to our legal staff for a determination as to relief from bond forfeitures." On August 14, 2000, the ITD's counsel sent Westway a letter stating that Idaho Code § 54-1904C only permitted return of the bid security if the bidder made a clerical or mathematical mistake; that Westway's mistake cannot be classified as a clerical mistake because it was a judgmental error; and that if Westway paid $538,240.95 within thirty days, its bid bond would be returned.
On September 14, 2000, a roadway design engineer for the ITD sent a letter entitled "Final Report" which was written "to document the facts concerning problems with the bid of Westway Construction, Inc. and the existence of each element required in Idaho code 54-1904C in order to qualify for relief from bids allowed by Idaho code 54-1904B." After reciting various facts, he stated, "We therefore have not been provided enough information to determine that a clerical mistake was made." He concluded, "The Idaho Transportation Department finds that all elements have not been met for relief from forfeiture of bond per Idaho code 54-1904C."
On December 4, 2000, Westway filed this action against the ITD seeking a declaratory judgment that it had made a clerical mistake in its bid and was therefore entitled to the return of its bid bond. The ITD answered and then filed a third-party complaint against USF & G seeking a judgment in the sum of $538,241.32, the face amount of the bid bond. Westway and USF & G both moved for summary judgment, and after oral argument the district court issued a memorandum decision denying both motions. The district court found that the ITD had not abused its discretion in determining that Westway was not entitled to relief from the forfeiture of its bid bond. The district court then entered judgment declaring the bid bond forfeited and awarding the ITD damages against USF & G in the sum of $538,241.32. Both Westway and USF & G timely appealed.
After oral argument, this Court asked the parties to submit additional briefing on two issues: (1) Whether or not the Idaho Administrative Procedures Act (APA) applies to this case; and (2) If it does, whether or not a final order has been issued under the APA. Both Westway and the ITD submitted post-argument briefs.
Idaho Code § 54-1904B provides that a public works contractor, who has submitted a bid to a public entity in competitive bidding for the construction, alteration, repair, or improvement of public works construction, may obtain relief from the bid because of a mistake. A bidder who claims a mistake in the bid submitted is entitled to relief from the bid and the return of any bid security if the bidder satisfies all of the conditions of Idaho Code § 54-1904C. IDAHO CODE § 54-1904B(b) (2000). If the bidder does not satisfy those conditions, then the bid security is forfeited. Id. Idaho Code § 54-1904C provides as follows:
Because the doctrine of exhaustion of administrative remedies generally requires that a case run the full gamut of administrative proceedings before an application for judicial review may be considered, McVicker v. City of Lewiston, 134 Idaho 34, 37, 995 P.2d 804, 807 (2000), we must decide whether the APA governs the determination of whether a bidder has satisfied the conditions set forth in Idaho Code § 54-1904C.
The APA governs that determination if it is a "contested case," which is defined as a "proceeding by an agency, other than the public utilities commission or the industrial commission, that may result in the issuance of an order." IDAHO CODE § 67-5240 (2001). To be a contested case, the proceeding must be by an "agency," which Idaho Code § 67-5201(2) defines as follows:
"Agency" means each state board, commission, department or officer authorized by law to make rules or to determine contested cases, but does not include the legislative or judicial branches, executive officers listed in section 1, article IV, of the constitution of the state of Idaho in the exercise of powers derived directly and exclusively from the constitution, the state militia or the state board of correction.
The ITD is an agency within that definition. It is an executive department of state government. IDAHO CODE § 40-501 (2002).
To be a contested case, the proceeding must be one that may result in the issuance of an "order." Idaho Code § 67-5201(12) defines an order as "an agency action of particular applicability that determines the legal rights, duties, privileges, immunities, or other legal interests of one (1) or more specific persons." The ITD's determination of whether Westway has satisfied the conditions set forth in Idaho Code § 54-1904C would be an agency action2 "of particular applicability." It would apply only to Westway and USF & G.
Finally, to be a contested case the decision by the ITD as to whether Westway is entitled to the return of its bid security must "determine the legal rights, duties, privileges, immunities or other legal interests" of specific persons.3 IDAHO CODE § 67-5240 (2001). Whether or not that decision determines legal rights, duties, privileges, immunities or other legal interests requires a two-step analysis.
First, has the legislature granted the agency the authority to determine the particular issue? If an agency does not have the authority to resolve a particular issue, then the agency cannot determine a party's legal rights, duties, privileges, immunities, or other legal interests regarding that issue. Hoppe v. Nichols, 100 Idaho 133, 594 P.2d 643 (1979). Thus, the first step in the analysis is to decide whether the legislature has granted the ITD the authority to determine whether Westway satisfied the conditions in Idaho Code § 54 1904C. The applicable statutes are as follows:
To continue reading
Request your trial
-
Hayden Lake Fire Protection Dist. v. Alcorn
...interpreting the federal APA are inapplicable. In addition, reliance on this Court's recent decision in Westway Constr., Inc. v. Idaho Transp. Dept., 139 Idaho 107, 73 P.3d 721 (2003), is not persuasive. That case involved the Department of Transportation, an agency with different functions......
-
Kootenai Cnty. v. Harriman–Sayler, 39071.
...Ass'n v. Potlatch Sch. Dist. No. 285, 148 Idaho 630, 635, 226 P.3d 1277, 1282 (2010) (citing Westway Const., Inc. v. Idaho Transp. Dep't, 139 Idaho 107, 116, 73 P.3d 721, 730 (2003)). Idaho Code § 12–117(1) provides that: Unless otherwise provided by statute, in any proceeding involving as ......
-
Kootenai Cnty. v. Harriman-Sayler
...Educ. Ass'n v. Potlatch Sch. Dist. No. 285, 148 Idaho 630, 635, 226 P.3d 1277, 1282 (2010) (citing Westway Const., Inc. v. Idaho Transp. Dep't, 139 Idaho 107, 116, 73 P.3d 721, 730 (2003) ). Idaho Code § 12–117(1) provides that:Unless otherwise provided by statute, in any proceeding involvi......
-
Kootenai Cnty. v. Harriman-Sayler
...Educ. Ass'n v. Potlatch Sch. Dist. No. 285, 148 Idaho 630, 635, 226 P.3d 1277, 1282 (2010) (citing Westway Const., Inc. v. Idaho Transp. Dep't, 139 Idaho 107, 116, 73 P.3d 721, 730 (2003)). Idaho Code § 12-117(1) provides that:Unless otherwise provided by statute, in any proceeding involvin......
-
BEYOND CHEVRON: AN ANALYSIS OF IDAHO'S INTERMEDIATE DEFERENCE DOCTRINE AND ITS HYPOTHETICAL APPLICATION IN FEDERAL COURTS.
...309, 312 (Idaho 1979)). (69.) Id. at 1220 (quoting Kopp, 595 P.2d at 312). (70.) See, e.g., Westway Constr., Inc. v. Idaho Transp. Dep't, 73 P.3d 721, 729-30 (Idaho 2003); Sons & Daughters of Idaho, Inc. v. Idaho Lottery Comm'n, 156 P.3d 524, 527 (Idaho 2007); Canty v. Idaho State Tax C......