Layman's Security Co. v. Water Works & Sewer Board of the City of PrichardLayman's Security Co. v. Water Works & Sewer Board of the City of Prichard
This is an appeal from a summary judgment in favor of the Water Works and Sewer Board of the City of Prichard (“the Board”). The case arosе when the Board terminated a three-year contract that it had with Layman’s Security Company (“Layman’s”), whereby Layman’s was to provide security for the Board’s plant located in Prichard. Because we find that the contract between the Board and Layman’s was nоt entered into in compliance with the Alabama Competitive Bid Law, Ala.Code 1975, § 41-16-50 (Supp.1988), we affirm the summary judgment.
The facts in the present case are basically undisputed. On December 1, 1985, Layman’s and the Board entered into a three-year contract in which Laymаn’s agreed to provide security services for the Board’s plant in Prichard, in exchange for a $1,500 per month fee and a five pеrcent yearly increase. The contract was not entered into in compliance with the competitive bidding process outlined in the Competitive Bid Law. Layman’s performed its contractual obligations until it was notified by a letter from the Board dated March 15, 1987, that the contract was terminated as of that date.
On July 31, 1987, Layman’s filed suit, seeking damages for breach of contract. The court entеred summary judgment for the Board. Layman’s appeals.
The terms-of the contract in question are unambiguous. The only issue presented is what effect, if any, is to be given a contract that falls within the scope of the Competitive Bid Law, but is not in compliance with the prеscribed competitive bidding process. The Competitive Bid Law mandates that any contract for an amount in excess of $3,000 entered into by specified state or municipal governing bodies (including a water works or sewer board), shall be subject to free and oрen competitive bidding.
Clearly, the contract between Layman’s and the Board is one that is covered by the Competitive Bid Law. Thе contract was for over $3,000, and it was made by a municipal water works and sewer board. It is also undisputed that the provisions of the Competitive Bid Law were not complied with when the contract was entered into. Therefore, unless the contract falls within one оf the exceptions to the Competitive Bid Law, which are enumerated in Ala. Code 1975, § 41-16-51 (Supp.1988), or it
The relevant portion of § 41-16-51 states that competitive bidding is not required for:
“(3) Contracts for the securing of services of attorneys, physicians, architects, teachers, superintendents of construction, artists, appraisers, engineers, consultants, certified public accountants, public accountants or other individuals possessing a high degree of professional skill where the personality of the individual plays a decisive part....”
Layman’s argues that the instant contract is within the language of this section; thus, it argues, summary judgment in favor of the Board was improрer. It further asserts that the application of the statutory provisions calls for a factual determination that should be reserved for a jury. We disagree, and we hold that the providing of security does not constitute a service where the individual’s personality is a decisive factor. Therefore, the contract does not fall within this exception to the Competitive Bid Law.
The only remaining grounds for enforcement of the contract is the equitable doctrine of estoppel. The relationship between the use of еstoppel and the Alabama Competitive Bid Law was discussed by this Court in Maintenance, Inc. v. Houston County,
“Maintenance contends that the County is estopped from denying the validity of the 1980 cоntract because the president of Maintenance detrimentally relied upon the assurances of the County attorney that the contract would be valid without the necessity of receiving competitive bids.
“Maintenance cannot, however, by way of estoppel, endow with validity a transaction which is illegal and against public policy. Cochran v. Ozark Country Club, Inc.,339 So.2d 1023 (Ala.1976). Where the 1980 contract between Maintenаnce and the County was void for noncompliance with the bid law, the principle of estoppel could not be utilized to create the contract anew. Bates v. Jim Walter Resources, Inc.,418 So.2d 903 (Ala.1982).
“Where, moreover, the legislature has expressed its public policy of voiding contracts which do not comply with the competitive bid law, we decline to expand the scope of our holding in Alford v. City of Gadsden,349 So.2d 1132 (Ala.1977), which upheld an estoрpel argument against city officials who merely failed to follow the formalities of contract execution.”
Id.
The use of estoppel to prevent a municipality from voiding a contract was later analyzed by this Court in City of Guntersville v. Alred,
“The doctrine of estoppel may apply against a municipal corporation when justice and fair play demand it. Alford v. City of Gadsden, [349 So.2d 1132 (Ala. 1977) ]; Alabama Farm Bureau Mutual Casualty Insurance Co. v. Board of Adjustment,470 So.2d 1234 (Ala.Civ.App. 1985).”
Id. at 568.
Applying those prior decisions to this case, we hold that the judgment of the trial court is due to be affirmed. Because Layman’s presented no proof that it materially and dеtrimentally changed its position in reliance on the contract, estoppel will not
AFFIRMED.