132 So. 3d 475
La. Ct. App.2014Background
- Public bid dispute over NOPD Uniforms Contract; trial court denied A.P.E.'s preliminary injunction, which A.P.E. appeals.
- Bids submitted by A.P.E. and Signal 26; addendum extended the deadline from Nov. 8, 2012 to Dec. 4, 2012.
- A.P.E. alleged Signal 26 had a prohibited financial interest under City Ordinance 2-777 due to a Signal 26 shareholder married to an NOPD officer.
- Hoffacker sold her Signal 26 stock before award; city investigated and claimed conflict resolved prior to award.
- Court must decide whether 2-777 applies at bid submission and whether Signal 26 was disqualified, requiring rebid; holding reverses trial court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 2-777 prohibits a financial interest at bid time | A.P.E. says Hoffacker's Signal 26 interest violated 2-777 at bid time | City/Signal 26 contend conflict resolved before award; no violation | Yes, Signal 26 disqualified; bid invalid |
| Whether the term “contract” in 2-777 includes bid submissions | Hoffacker’s interest makes Signal 26 ineligible at bid submission | Contract refers to executed agreement | Word ‘contract’ encompasses bid solicitation beyond a finished contract |
| Whether the bid should be rebid due to disqualification | Signal 26’s bid null; rebid required | No injury shown; continue with award | Yes, rebid required; Signal 26 bid declared nullity |
Key Cases Cited
- Executone of Cent. Louisiana, Inc. v. Hospital Service Dist. No. 1 of Tangipahoa Parish, 798 So.2d 987 (La.App. 1 Cir. 2001) (absolute nullity when contract violates public order; used to support public policy)
- Broadmoor, L.L.C. v. Ernest N. Morial New Orleans Exhibition Hall Authority, 867 So.2d 651 (La. 2004) (Public Bid Law as prohibitory; policy basis for disqualification)
- People v. Savaiano, 66 Ill.2d 7, 359 N.E.2d 475 (Ill. 1976) (conflict-of-interest statute applies to prevention before contract execution; completed contract not required)