178 Ind. 221 | Ind. | 1912
Lead Opinion
On January 23, 1909, the Board of Commissioners of the County of Marshall presented to the county council of said county a petition and estimate for the repair and remodeling of the courthouse of said county. In this petition it was stated, among other things, that the board proposed to prepare a room in the basement of the courthouse for the county surveyor. Acting on this petition, the county council made an appropriation as follows: “That there be appropriated out of the county funds of said county the following sums. * * Por repair of courthouse, including heating apparatus therefor and other necessary repairs, $15,000. * * * Said appropriation of $15,000 is to be used or expended on the courthouse as follows: Repairing or reroofing, remodeling tower with illuminating dial, painting outside and painting and decorating inside, repairing old floors or putting in new ones. ’' On February 10, 1909, the county council made an order specifically authorizing the construction of three'toilet rooms on the second floor, and for rewiring for electric lighting, under the ap
The auditor prepared separate blank forms, to be furnished possible bidders in four sets: One for the general work under the specifications and one each for the steam heating, for the electric wiring and for the plumbing.
There were several bidders on each item of the general contract, except the eighth, which was for decorating the court room. Appellee O’Keefe used the form furnished by the auditor, except as to the eighth item he added ‘ ‘ on design to be submitted $300. ’ ’ After the general bid he added the words: “This bid and bond is filed conditional that I am awarded all of the work under the general specifications.” He also bid on the wiring, plumbing and heating. At the close of each of his bids on wiring and plumbing, he added the words: “This bid conditional upon being awarded all of the work,” and in his bid as to the heating he added the words: “Using old boiler and new valves.” O’Keefe also filed a noncollusion affidavit, following §5897, supra; the other bidders filed affidavits conforming to §5959 Burns 1908, Acts 1899 p. 343, §42.
The bids of O’Keefe were accepted, and one contract entered into with him June 8, 1909, for all the work, and this action was brought June 18 by appellant, as a taxpayer, to enjoin the performance of the work under that contract, and from paying for it.
The affidavit covers the case where there are no representatives or agents present at the time, and the bidder is present, by requiring the affidavit to show that the forbidden thing has not been done directly or indirectly. A bidder might be present himself and have agents or representatives present, none of whom had done the prohibited thing, but if an absent
The board of commissioners before advertising for bids determined to use the old boiler. The notice to bidders referred them to the plans and specifications, and gave notice that “bids will be received for the general contract, heating
As to the plumbing, wiring and heating, they were to be the subject of one contract, and they also were separated in the bidding, so that adding to the bids for plumbing and wiring the words, “conditional upon being awarded all the work”, evidently meant the work under the one cpntract for plumbing, wiring and heating.
It is readily seen how this may have arisen. Instead of preparing the forms so that one bid would embrace these three subjects, by separate items, the forms were framed for them separately, and in view of the provisions of the specifications, that they would be let under one contract, but “bid on separately”, it was not an unwise precaution, in view of the possible construction, emphasized by the construction' here insisted on, that the bid should be so framed that plumbing, heating and wiring should be the subject of one contract, and therefore adding the words which were added in nowise changed the bid, or the relation of the bidders to subjects bid on under that proposed contract, or put the bidders on a different basis of bidding. We are unable to perceive that there is any connection between the bids under the two proposed contracts. They are wholly independent. Under the specifications the successful bidder under the general con
The principle is well stated in the first above cited case.
‘ ‘ The purpose to break down competition poisons the whole contract, and there is no antidote which will rescue it from legal death. ’ ’ That is precisely what would be permissible, if we were to uphold the contract.
The bid for plumbing, wiring and heating is not subject to the vice of the general contract, in so far as the bidding is concerned, but instead of following the declared intention and purpose to let two separate contracts, all the subjects of bids were embraced in one contract when finally reduced to writing, and while they may be severable from -the general contract under ordinary circumstances, with the general contract stricken down, the contract for wiring, heating and plumbing could not be executed or complied with, and is so dependent on the execution of the general contract that the whole must fall together.
Cross-errors are assigned, the only one of which not waived is that of the sufficiency of the complaint. Prom what has been said, the sufficiency of the complaint abundantly appears.
The judgment of the court below is reversed, with instruction to grant a new trial, and for further proceedings not inconsistent with this opinion.
Rehearing
On Petition for Rehearing.
The able counsel for appellees have presented very earnest briefs on petition 'for a rehearing in this cause, and the importance of the question, conpled with the variety of opinions pronounced by the Appellate Court, has led us to a careful review of the cause.
It is urged that because we held that bidders presumptively knew that the work on the surveyor’s office and dee
What might have been done under the item of decorating the court room, neither we nor the taxpayers could knoAv. But it is urged that so long as there were specifications prepared for the surveyor’s office, and the bids were Avithin the appropriation of $15,000, it must be deemed that the construction of a surveyor’s office was not deemed necessary to be the subject of an appropriation, and its omission an inadvertence. That may be true, and it may have been the subject of the utmost good faith, but all are agreed that an appropriation was necessary; hence that subject could not be embraced in the bidding under the appropriation as made,
It is urged that because the court held in the original opinion that the clause added by O ’Keefe under his general bid added nothing to it, but was a mere separation of the items in bidding on that one contract, if the subjects of that bid had been proper, all that is necessary is to subtract from the whole price bid the unauthorized portions. The answer is that they were not deducted, but were contracted for; and
Neither is it material in this case or in any other that all may have bid on all the items. The answer to it all is that even though they did, there was no power to receive such a bid. To sanction such a course, it would only be necessary, in case one item was authorized, to couple with it a dozen unauthorized items, and take bids on the whole.
Counsel proceed on the theory that it is a question between bidders, or between bidders and the board, whereas it is a question of the rights of taxpayers. Counsel in their argument and in the citation of authorities, somewhat extended, as to the rule of divisibility of contracts, and enforcement of those which are legal and separable, overlook the fact that the bid is specific in'tying the acceptance of the bid for the improper subjects to the proper ones, as a condition of doing the authorized work, thereby excluding the application of the rule.
But it is urged that, relying on the judgment below, and the varying changes wrought in the situation by the opinions promulgated in the case, appellee contractor has proceeded with the work until a considerable expenditure has been incurred by him. This appears by the brief of counsel, and we, of course, cannot be governed by the after-accruing results, and much as the condition he now finds himself in is to be regretted, we are in no situation to extend relief from conditions which he is at least equally responsible in producing.
It is also urged that we are in error in holding that the two biddings were invalid, because embraced in one memorandum. We do not-so understand the opinion, or intend so to hold, but put the case on the ground that it seemed that the repairs on the buildings were of such character, and so coupled with the subjects of heating, wiring and plumbing, and so necessarily allied, that physical obstructions to doing the latter would be encountered by the former being stopped, and that the contractor ought not to be held to the one where the other is declared invalid. Whether we were in error in that respect, would not affect the question under the main contract; and if the other work could be done, or has been done, there is no such connection between the two as to render the plumbing, heating and wiring contract invalid, if it could physically and reasonably be performed and the contractor chose to perform it.
Note.—Reported in 98 N. E. 33 and 98 N. E. 1002. See, also, under (1, 3) 1913 Cyc. Ann. 1219; (2) 29 Cyc. 1431; (4) 11 Cyc. 511; (6) 11 Cyc. 468; (7) 1913 Cyc. Ann. 1218; (10) 16 Cyc. 780; (11) 11 Cyc. 483; (13) 16 Cyc. 785. As to the right of a building contractor to recover for a substantial performance of his contract, see 134 Am. St. 678. As to the entirety of contracts, see 54 Am. Rep. 624; 59 Am. St. 277. As to who are responsible bidders and how they may enforce their rights, see 50 Am. St. 489. On the question of discretion in choosing between bidders for public contract, see 38 L. R. A. (N. S.) 653. As to the construction of “lowest responsible bidder” or a similar phrase in a statute providing for the letting of municipal contracts, see Ann. Cas. 1913A 500.