Specialty Asphalt & Construction, LLC v. Lincoln County
34480-1
| Wash. Ct. App. | Aug 29, 2017Background
- Specialty Asphalt (majority owner Lisa Jacobsen) submitted the low bid to pave the Lincoln County courthouse parking lot; the bid notice mistakenly omitted any requirement for proposal or performance bonds.
- Jacobsen participated in a public walkthrough; later Mr. Nollmeyer (county permit coordinator) gave a private walkthrough to a competitor (Arrow); Jacobsen alleges Nollmeyer discouraged her from bidding and made a comment about her heels.
- Specialty won the award and returned a signed contract but refused to sign the contract bond (citing the bid notice's omission and insurance advice); the county initially insisted on a bond and terminated the process but later offered to pay bond costs or rescinded the bond requirement and ultimately stipulated that Specialty could perform without a bond.
- Specialty sued for injunctive/declaratory relief, later added claims for gender discrimination and negligent misrepresentation; county moved for summary judgment and to strike portions of Jacobsen's affidavit.
- The trial court struck certain hearsay, granted summary judgment dismissing the gender-discrimination and negligent-misrepresentation claims, allowed the contract claim to proceed but denied Specialty leave to amend for damages; Specialty declined to perform and the court dismissed the contract claim as moot; Specialty appealed.
Issues
| Issue | Specialty's Argument | Lincoln County's Argument | Held |
|---|---|---|---|
| Whether Jacobsen proved sex-based disparate treatment in contract making/performance | Jacobsen: county treated her (a woman) differently (discouraging phone call, comments, private walkthrough for competitor) | County: no evidence competitor was treated differently; Specialty still won bid and wasn't made worse off by conduct | Court: No — plaintiff failed the third prima facie element; alleged acts did not show disparate treatment that made performance more onerous or less lucrative |
| Whether negligent misrepresentation claim survives summary judgment | Specialty: county’s bid materials/communications were false and induced reliance, causing pecuniary loss | County: no recoverable damages — either public-duty defense or no provable pecuniary loss because county later covered bond cost/rescinded bond | Court: No — damages element lacking; Specialty suffered no pecuniary loss before contract performance, so claim fails |
| Admissibility of portions of Jacobsen’s affidavit (hearsay) | Specialty: statements by county auditor and commissioner are admissions/agents and should be admitted | County: those statements are hearsay and inadmissible | Court: Mostly proper to strike; any error harmless because statements were cumulative and did not affect summary-judgment outcome |
| Whether Specialty could amend to seek contract damages / whether contract claim dismissal was proper | Specialty: should be allowed to amend to seek damages for breach | County: bidder’s exclusive remedy is injunction; damages not available until after completion; amendment would be futile | Court: No amendment; dismissal proper and case moot because county conceded relief (no other justiciable controversy) |
Key Cases Cited
- Marquis v. City of Spokane, 130 Wn.2d 97 (1996) (elements for discrimination in making/performing employment contracts)
- Ross v. Kirner, 162 Wn.2d 493 (2007) (elements required for negligent misrepresentation under §552)
- Lewis River Golf, Inc. v. OM Scott & Sons, 120 Wn.2d 712 (1993) (damages must be shown with reasonable certainty in tort/contract contexts)
- Skyline Contractors, Inc. v. Spokane Housing Authority, 172 Wn. App. 193 (2012) (exclusive remedy for aggrieved public works bidder is injunctive relief; damages inappropriate if bidder does not complete work)
- Scoccolo Construction ex rel. Curb One, Inc. v. City of Renton, 158 Wn.2d 506 (2006) (availability of contract damages post-completion)
- Mottner v. Town of Mercer Island, 75 Wn.2d 575 (1969) (historical rule on injunctive relief as exclusive remedy for public works bidders)
