PATRICIA RUFF VS. WEST KINNEY GARDENSÂ (L-4983-14, ESSEX COUNTY AND STATEWIDE)
A-2116-16T4
| N.J. Super. Ct. App. Div. | Jul 11, 2017Background
- United Services, Inc. (USI) had provided janitorial services to Newark under emergency extensions and submitted the apparent lowest bid for a March 29, 2016 public solicitation for janitorial and germicide services.
- Newark received multiple bids, then on June 28, 2016 notified bidders it intended to reject all bids due to alleged ambiguities in the specifications and to substantially revise them under N.J.S.A. 40A:11-13.2(d).
- Newark later authorized competitive contracting and issued an RFP splitting work into parts, adding MBE set-asides, changing evaluation weights, and removing bond requirements.
- USI sued to enjoin rebidding and compel award to it as lowest bidder, alleging rebidding was a pretext to favor unionized bidders (Local 32BJ) and pointing to other allegedly exclusionary or manipulative actions by Newark.
- The trial court initially entered temporary restraints, later vacated them and denied a preliminary injunction; this appeal sought continuation of an injunction preventing Newark from awarding contracts pending resolution.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interim relief (injunction/stay) is required to preserve the status quo pending trial | USI: rebid would irreparably harm USI because losing the status quo lets other bidders use USI's low bid as a floor; USI likely to succeed on merits as lowest responsible bidder | Newark: has statutory right to reject all bids and use competitive contracting; no irreparable harm | Court: Less-rigid Crowe standard applies to preserve status quo; reinstated injunction preventing award pending trial (reversed trial judge on this point) |
| Whether Newark permissibly rejected all bids and converted to competitive contracting after public bidding opened | USI: rejection was a subterfuge to favor unionized bidders and not justified by stated ambiguities | Newark: ambiguities in specs justified rejection and statutory authority allows rejection and rebidding | Court: Newark may reject all bids only under statutory grounds; factual sufficiency for trial remains, so injunctive relief to preserve status quo was appropriate |
| Whether USI stated a viable claim of bad faith/collusion (favoring Local 32BJ) sufficient for interim relief | USI: evidence of meetings, union involvement, and political connections supports inference of manipulation and irreparable injury | Newark: denies wrongdoing and relies on procurement discretion and new RFP process | Court: allegations raise issues for trial; balancing of equities favors preserving status quo, so injunction maintained until merits decided |
| Legality of residency requirement and other specification changes (MBE/residency, bond removal, contract splitting) | USI: some new specs (e.g., NJ residency for MBE) unlawfully exclude bidders; changes tailored to eliminate USI | Newark: specification choices within procurement discretion; later removed residency requirement | Court: Residency requirements are generally prohibited unless justified by proximity statute; such statutory defenses and specification issues are matters for trial; injunctive relief appropriate pending resolution |
Key Cases Cited
- Crowe v. De Gioia, 90 N.J. 126 (discussing standards for stay/relief pending appeal)
- Meadowbrook Carting Co. v. Borough of Island Heights, 138 N.J. 307 (publicly advertised contracts must be awarded to lowest responsible bidder)
- Waste Mgmt. of N.J., Inc. v. Morris Cty. Mun. Utils. Auth., 433 N.J. Super. 445 (permitting relaxed Crowe analysis to preserve status quo in procurement disputes)
- McKenzie v. Corzine, 396 N.J. Super. 405 (requiring clear and convincing demonstration of Crowe factors for stays)