David HANTEN, et al., Plaintiffs,
v.
The SCHOOL DISTRICT OF RIVERVIEW GARDENS, et al., Defendants.
United States District Court, E.D. Missouri, Eastern Division.
*972 *973 David W. Harlan, Partner, Bradley G. Kafka, Rebecca E. Walsh, Gallop and Johnson, Ira M. Potter, Benson and Guest, Michael A. Kahn, Stinson and Mag, St. Louis, MO, for plaintiffs.
Bradley S. Hiles, Terry L. Potter, Associate, Randall S. Thompson, Blackwell Sanders Peper Martin LLP, St. Louis, MO, for defendants.
MEMORANDUM
LIMBAUGH, District Judge.
This matter is before the Court on Defendants' Motion to Dismiss and/or for Summary Judgment (# 20). Also pending is Plaintiffs' Motion for Summary Judgment (# 49). The underlying cause of action arises out of the bid selection for the construction of a new elementary school to be built within the Riverview Gardens School District. Plaintiffs include a non-union mechanical subcontractor that was removed from the award-winning lowest bid, three of its employees, and its estimator who is suing in his capacity as a taxpayer and resident of the school district. Defendants include the Riverview Gardens School District, its superintendent, and the individual members of its Board of Education (the "School Board").
Background
In November, 1996, defendant Riverview Gardens School District passed a bond issue that provided funding for several construction projects, including construction for the Moline Elementary School (the "Moline Project"). Due to an enlarged student enrollment and already overcrowded classrooms, the school district sought to have the Moline Project completed before the 1998 school year. In view of this time constraint, Dr. Chris Wright, Superintendent of the Riverview Gardens School District, immediately began to confer with members of the School Board about staffing the Moline Project with union labor. Based upon these informal conversations, Dr. Wright believed that a majority of the School Board favored staffing the Moline Project exclusively with union labor. Accordingly, she asked the school district's attorneys to draft language indicating a preference for union labor and had the project architects include this language in the bid specification.
On May 30, 1997, defendant Riverview Gardens School District issued its Project Manual governing bid submissions for the Moline Project. The Project Manual stated a preference, but did not require, that bidders be signatory to a collective bargaining agreement with an AFL-CIO union. The Project Manual reads, in pertinent part:
*974 The Owner seeks to ensure a ready and adequate supply of highly trained and skilled craft persons, the establishment of reasonable working conditions for construction projects, the provision of negotiated commitments between employers and employees that are legally enforceable, and the assurance of labor stability and labor peace over the life of the project. Accordingly, bidders are encouraged to enter into a collective bargaining agreement for the Project with the St. Louis Building and Construction Trades Council, AFL-CIO, and its affiliated construction of the project. All bidders are required to certify in their bids whether they are already bound by such an agreement or are willing to enter into such an agreement for this Project.
The Project Manual also stated a preference, but did not require, that bidders use workers who have completed an apprenticeship program approved by the Department of Labor. Finally, the Project Manual required that bidders include a list of subcontractors, and that any changes to this list be approved by the School Board.
Five general contractors submitted bids. The low bidder was Wachter, Inc. ("Wachter"), with a base bid of $4,868,550.00. Consistent with the requirements of the Project Manual, Wachter's bid documents listed all of its subcontractors. Two of the subcontractors listed by Wachter did not have contracts with the St. Louis Building and Construction Trades Council: Plaintiff K.C. Heating Cooling & Sheet Metal, Inc. ("K.C.") and Crown Electrical Contracting, Inc. ("Crown"). In fact, three months prior to the submission of the Wachter bid, the employees of K.C. voted against representation by Sheet Metal Workers, Local 36 (a member of the St. Louis Building and Construction Trades Council) in a National Labor Relations Board election held on March 28, 1997.
The bids were opened at 10:00am on June 24, 1997. Upon learning that Wachter was the low bidder, its representative and president, Mark Kamp, allegedly called K.C.'s Estimator, Plaintiff David Hanten, and said, "We've got ourselves a job. Get your submittals together." Wachter had used K.C. as the mechanical subcontractor on several other projects and had worked very closely with K.C. in preparing its bid for the Moline Project.
After the bids were open, the project architect, Gale Hill, returned to his office to examine the bid documents. He noticed that Wachter had represented that 100% of its workforce had completed an apprenticeship program. Having worked with K.C. on other projects, Mr. Hill was aware that K.C. was not signatory to any AFL-CIO contract. Mistakenly believing that participation in an apprenticeship program was synonymous with union affiliation, he telephoned Mark Kamp to find out why Wachter had listed K.C. as its mechanical subcontractor. Mr. Kamp confirmed that K.C. was non-union and informed Mr. Hill that the electrical subcontractor, Crown, was also non-union. When questioned about their apprenticeship certification, Mr. Kamp explained that Wachter had interpreted the preference as applying only to the general contractor, not to each of the subcontractors. At Mr. Hill's request, Mr. Kamp provided the bids of the lowest union mechanical and electrical subcontractors: C & R Heating and Service Company, Inc. ("C & R") and Schneider Electric Co. ("Schneider"). Mr. Hill determined that substituting these two union subcontractors would increase Wachter's bid by $112,374.00.
At 5:30pm on June 24, 1997, Dr. Wright, Assistant Superintendent Charles Nicastro, and the project architects met to go over the bids on the Moline Project. Mr. Hill explained that Wachter's bid included two non-union subcontractors, and that substitution of union subcontractors would increase the bid by $112,374.00. Based upon her earlier conversations with the members of the School Board, Dr. Wright decided that all subcontractors should be signatory to a collective bargaining agreement with an AFL-CIO union and, therefore, that Wachter's bid should be changed to replace K.C. and Crown with C & R and Schneider. Accordingly, prior to the 7:30pm School Board meeting, Dr. Wright and the others re-typed the tabulation sheet to reflect the change in Wachter's bid.
At the 7:30pm School Board meeting on June 24, 1997, the members of the School *975 Board were given a tabulation sheet listing the five bids, with the revised version of the Wachter bid. The School Board ultimately approved the Wachter bid at $5,321,674.00.[1] At the time they approved the Wachter bid, none of the Board members were aware of Wachter's original bid or the replacement of the two non-union subcontractors. The $5,321,674.00 bid was still the lowest bid submitted.
On or before June 27, 1997, Dr. Wright informed the Board members that K.C. and Crown had been replaced by union subcontractors at a higher price and that K.C. was protesting the decision. Although the contract with Wachter had not yet been finalized, none of the School Board members took any action with respect to K.C.'s claim.
Discussion
Plaintiffs bring their First Amended Complaint seeking legal and equitable relief under 42 U.S.C. § 1983 ("§ 1983"), Missouri's Open-Bidding Statute, Mo.Rev.Stat. § 177.086, and Missouri's Sunshine Law, Mo. Rev.Stat. § 610.010 et seq. They allege that Defendants violated the First and Fourteenth Amendments to the United States Constitution and the aforementioned Missouri statutes when they removed K.C. as the mechanical subcontractor from the award-winning lowest bid and replaced it with a more expensive union subcontractor.
Defendants argue for dismissal as to Counts I-IV of Plaintiffs' First Amended Complaint, pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, for failure to state a claim upon which relief can be granted, and for summary judgment as to Count V. Alternatively, Defendants argue for summary judgment as to all counts of Plaintiffs' First Amended Complaint.[2]
When ruling on a motion to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure, the Court assumes that all the facts as stated in the complaint are true. Conley v. Gibson,
A district court may grant a motion for summary judgment, under Rule 56(c) of Federal Rules Civil Procedure, if all of the information before the court demonstrates that "there is no genuine issue as to material fact and the moving party is entitled to judgment as a matter of law." Poller v. Columbia Broadcasting System, Inc.,
In passing on a motion for summary judgment, the court must review the facts in a light most favorable to the party opposing the motion and give that party the benefit of any inferences that logically can be drawn from those facts. Buller v. Buechler,
In Count I of Plaintiffs' First Amended Complaint, the individual employee plaintiffs allege that Defendants violated their right of free association by removing K.C. as the mechanical subcontractor from Wachter's award-winning bid and substituting a higher priced union subcontractor. Essentially, they argue that it was unlawful for Defendants to require that the Moline Project be staffed exclusively with union labor. Defendants argue that a public body acting in its proprietary capacity may lawfully condition the award of a construction project based upon the union status of the bidders.
It is beyond dispute that "the freedom of an individual to associate for the purpose of advancing beliefs and ideas is protected by the First and Fourteenth Amendments." Abood v. Detroit Board of Education,
Nevertheless, the government may, consonant with the First Amendment, engage in some conduct that incidentally inhibits protected forms of association. Fighting Finest, Inc. v. Bratton,
Applying the analysis of Lyng to this case, the Court concludes that Defendants' actions should be reviewed only for a rational basis. Like the statute considered in Lyng, requiring bidders for a public construction project to be signatory to a collective bargaining agreement with an AFL-CIO union does not "directly and substantially interfere" with the individual employee plaintiffs' associational rights. Simply put, it seems exceedingly unlikely that K.C.'s removal from the Moline Project will compel the individual employee plaintiffs to forego their right not to associate in a union. See Lyng,
The Court finds further support for this conclusion in the Supreme Court's unanimous decision in Building and Construction Trades Council v. Associated Builders & Contractors of Massachusetts/Rhode Island, Inc.,
Plaintiffs' reliance on Board of County Commissioners, Wabaunsee County, Kansas v. Umbehr,
In Count II of Plaintiffs' First Amended Complaint, K.C. alleges that by forcing its removal from Wachter's award-winning bid, Defendants deprived it of a property interest without due process of law in violation of the Fourteenth Amendment. K.C. insists that it had a protected property interest in the work it would have performed on the Moline Project. *978 Defendants argue that, under Missouri law, a losing bidder obtains no justiciable property interest in the work bid upon.
"To establish a procedural due process violation, a plaintiff must first demonstrate that he has a protected liberty or property interest at stake." Marler v. Missouri State Board of Optometry,
Under Missouri law, "[a] rejected or unsuccessful bidder obtains no justiciable property right or any vested interest in the matter." La Mar Construction Co. v. Holt County, R-II School District,
In Count III of Plaintiffs' First Amended Complaint, the individual employee plaintiffs and K.C. allege that Defendants conspired to violate the individual employee plaintiffs' right of free association and to deprive K.C. of a property interest without due process of law in violation of the Fourteenth Amendment. Count III merely restates the allegations in Counts I and II as a separate conspiracy claim. As the Court has determined that Counts I and II of Plaintiffs' First Amended Complaint fail to state a claim upon which relief can be granted, Count III fails as a matter of law. See K & S Partnership v. Continental Bank, N.A.,
In Count IV of Plaintiffs' First Amended Complaint, plaintiff David Hanten, suing in his capacity as a taxpayer and resident of the school district, alleges that Defendants violated Missouri's Open-Bidding Statute, Mo. Rev.Stat. § 177.086, when they removed K.C. as the mechanical subcontractor from the award-winning lowest bid and replaced it with a more expensive union subcontractor.
As a threshold matter, the Court notes that Missouri's Open-Bidding statute does not facially apply to Hanten's claim. This is because defendant Riverview Gardens School District awarded the contract on the Moline Project to the lowest bidder. Assuming, for the sake of argument, that the statute nevertheless provides a cause of action whenever a school district does not award the lowest possible contract, Count IV of Plaintiffs' First Amended Complaint still fails to state a claim upon which relief can be granted.
Section 177.086 provides, in pertinent part:
*979 No bids shall be entertained by the school district which are not made in accordance with the specifications furnished by them and all contracts shall be let to the lowest responsible bidder complying with the terms of the letting, provided that the said school district shall have the right to reject any and all bids.
Mo.Rev.Stat. 177.086(2). Missouri courts have consistently interpreted this statute to provide school districts with broad discretion in letting contracts. See e.g., State ex rel. Page v. Reorganized School District R-VI of Christian County,
As stated above, the school district's preference for union labor was based on its desire to have an efficient, productive, and harmonious workforce, and to complete the Moline Project in a timely manner without work stoppages or other unnecessary delays. While the Court agrees with Plaintiffs' contention that these goals are likely to be present in every construction project, it cannot be said that they are arbitrary, capricious, or unlawful.[8] Contrary to Plaintiffs' assertions, Missouri's Open-Bidding statute does not require school districts to undertake or conduct a formalized study prior to implementing otherwise reasonable and lawful bidding preferences. See e.g., Page,
In Count V of Plaintiffs' First Amended Complaint, all of the plaintiffs allege that Defendants violated Missouri's Sunshine law, Mo.Rev.Stat. § 610.010 et seq., by conducting either a closed meeting on June 24, 1997, or a series of one-on-one closed meetings prior to June 24, 1997, to discuss changing the Project Manual to prohibit the use of any subcontractor on the Moline Project whose employees were not represented by an AFL-CIO union.
The undisputed evidence establishes that a portion of the School Board meeting held on June 24, 1997, was closed to discuss a student disciplinary matter. Student disciplinary matters are excepted from the open-meeting requirement, Mo.Rev.Stat. § 610.021(9), and proper notice of the closed session was given. All of the School Board members who were in attendance have attested that the Moline Project was not discussed during the closed portion of the meeting. Plaintiffs have presented no evidence to the contrary.
Although Defendants' readily admit that the members of the School Board and Dr. Wright informally discussed the workforce issue on several occasions prior to the publication of the Project Manual, an informal meeting "of less than a quorum does not constitute a meeting of a `public governmental body' when there is no intent to avoid the purposes of [the Sunshine Law]." Colombo v. Buford,
NOTES
Notes
[1] The record does not specifically account for the $340,750.00 discrepancy between Watcher's final bid of $5,321,674.00 and its initial bid of $4,868,550.00 plus the union labor substitution cost of $112,374.00. As there does not appear to be any dispute concerning this additional amount, the Court will accept the figures as alleged in Plaintiffs' Memorandum in Opposition to Defendants' Motion to Dismiss and/or for Summary Judgment.
[2] Defendants' Motion to Dismiss and/or for Summary Judgment was filed on November 26, 1997, and was directed toward Plaintiffs' original Complaint. On December 15, 1997, Plaintiffs' requested leave to file their First Amended Complaint. The Court granted Plaintiffs' request and received Plaintiffs' First Amended Complaint on February 20, 1998. As the parties anticipated these events and addressed Plaintiffs' First Amended Complaint in their supporting memoranda, the Court will treat this motion as if it had been directed toward Plaintiffs' First Amended Complaint.
[3] The Court reached this conclusion even though, "one individual quit his job and abandoned his union membership in order to receive food stamps, and another individual left a picket line to seek other work and lost his union membership." Lyng,
[4] Implicit in the Court's conclusion, of course, is that a public body acting in its proprietary capacity may also lawfully exclude union bidders so long as there exists a rational basis for doing so.
[5] Even if the Court were to apply the more rigorous balancing test first articulated in Pickering v. Board of Education of Township High School District 205, Will County, Illinois,
[6] Indeed, the Bid Form for the Moline Project expressly states, "[t]he Owner, in the interest of a standardization and ultimate economy reserves the right to require a substitution for Subcontractors, materials and equipment proposed by the bidder."
[7] In view of the its conclusion with respect to Defendants' Motion to Dismiss Counts I, II, and III of Plaintiffs' First Amended Complaint, the Court need not address Defendants' alternative grounds for summary judgment nor undertake a qualified immunity analysis.
[8] Plaintiffs' bare and unsubstantiated allegations of self-dealing or improper motive on the part of certain members of the School Board are insufficient to state a claim of unlawful motive, favoritism, or corruption. Furthermore, despite Plaintiffs' attempts to color Defendants' actions as secretive or clandestine, it is clear that Dr. Wright and the members of the School Board reasonably considered the needs of the school district and the costs associated with the Moline Project, and stated their justifications, along with their union preference, in the Project Manual governing bid submissions. Plaintiffs' arguments and cases regarding post hoc rationalizations are, therefore, inapposite.
