Midwest Psychological Center, Inc. v. Indiana Department of Administration
2011 Ind. App. LEXIS 1975
Ind. Ct. App.2011Background
- Midwest, a for-profit mental health provider, and Minority Health, a nonprofit certified as MBEs, both hold MBE certifications in Indiana.
- Corizon contracts with IDOA to provide mental health services and subcontracted with Minority Health for part of those services.
- Midwest filed grievances with IDOA challenging Minority Health’s MBE eligibility and seeking decertification; IDOA did not decertify.
- Midwest sued for declaratory judgment and injunction against Corizon, Minority Health, IDOA, Everson, and Kirkland, alleging conflicts of interest and improper subcontracting.
- Trial court granted judgments on the pleadings, holding Midwest lacked standing to challenge contracts or decertification proceedings.
- Court of Appeals affirmed, concluding Midwest lacked standing to challenge the contracts and the decertification process or Kirkland’s conflict of interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to challenge Corizon–Minority Health subcontract | Midwest aggrieved under 5-22-19-2 | Midwest not aggrieved; no standing | Midwest lacks standing to challenge the subcontract |
| Standing to challenge IDOA–Corizon contract | Midwest has aggrieved status under Public Purchasing Act | Unsuccessful bidder has no standing to challenge service contracts | Midwest lacks standing to challenge the contract |
| Standing to review Minority Health MBE decertification | IDOA procedures and prejudice to Midwest if decertified | No legally protected interest; procedural challenges insufficient | Midwest lacks standing to review the decertification process |
| Kirkland’s conflict of interest as chair of M/WBE and Minority Health director | Conflict of interest should be reviewable in this action | Insufficient standing; no direct injury shown | No standing to challenge the claimed conflict |
| Application of primary jurisdiction to IDOA’s certification | Trial court should defer to IDOA for decertification issues | Primary jurisdiction improperly applied; courts retain jurisdiction | Primary jurisdiction doctrine not applicable to bar judicial review |
Key Cases Cited
- Harmony Health Plan of Ind., Inc. v. Ind. Dep't of Admin., 864 N.E.2d 1083 (Ind. Ct. App. 2007) (unsuccessful bidder lacks standing to challenge state contracting decisions)
- Brownsburg Cmty. Sch. Corp. v. Natare Corp., 824 N.E.2d 336 (Ind. 2005) (standing limitations of aggrieved bidders under Public Purchasing Act)
- Trans-Care, Inc. v. Bd. of Comm'rs of the Cnty. of Vermillion, 831 N.E.2d 1255 (Ind. Ct. App. 2005) (lack of standing for unsuccessful bidder on county contract)
- Shook Heavy & Envtl. Constr. Group v. City of Kokomo, 632 N.E.2d 355 (Ind. 1994) (standing limits for public contracting challenges)
- Hibler v. Conseco, Inc., 744 N.E.2d 1012 (Ind. Ct. App. 2001) (substantial present interest and declaratory relief standards)