812 F.3d 654
8th Cir.2016Background
- Demien Construction Co. bid on a spring 2014 firehouse project solicited by the District.
- The biddingInstructions stated the Owner reserves the right to reject any or all proposals and to award to the bidder in the Owner’s best interest.
- The AIA guide informed bidding should consider lowest responsible bid and that rejection may occur not as a subterfuge.
- On May 27, 2014 the District awarded the contract to a higher bidder than Demien, which Demien contends was not the lowest.
- Demien filed suit under 42 U.S.C. § 1983 alleging due process and First Amendment claims, and also asserted state-law claims; the district court dismissed for lack of standing and failure to state a claim, then declined supplemental jurisdiction over the state claims.
- On appeal, Demien challenges the dismissal of its federal claims (standing and due process) and the district court’s handling of the First Amendment claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue under Article III | Demien alleges an injury from the district’s award process. | District contends no protected stake or entitlement existed. | Demien has Article III standing. |
| Fourteenth Amendment due process claim | Demien had a legitimate entitlement to the contract. | Missouri law does not confer a property right on an unsuccessful bidder when the district may reject bids. | No protected property interest; claim fails. |
| First Amendment claim | Demien asserts First Amendment rights in bidding. | District argues no viable First Amendment claim; dispute abandoned. | Claims abandoned on appeal; not considered. |
Key Cases Cited
- Metropolitan Express Servs., Inc. v. City of Kansas City, 23 F.3d 1367 (8th Cir. 1994) (standing under Article III for bid challenges)
- L & H Sanitation, Inc. v. Lake City Sanitation, Inc., 769 F.2d 517 (8th Cir. 1985) (no protected property interest where government may reject bids)
- Hanten v. School Dist. of Riverview Gardens, 183 F.3d 799 (8th Cir. 1999) (unsuccessful bidder lacks entitlement in bid process)
- Town of Castle Rock v. Gonzales, 545 U.S. 748 (2005) (benefits not protected entitlements if discretionary)