Lead Opinion
{¶ 1} Plaintiff-appellants, Associated Builders & Contractors, Inc. (“ABC”), Fechko Excavating, Inc. (“Fechko”), Dan Villers, and Jason Antill, appeal from the judgment of the Summit County Court of Common Pleas, dismissing for lack of standing. This court affirms.
I
{¶ 2} In 2008, voters in the city of Barberton passed a 5.2 mill levy to aid the Barberton City School District in building a new middle school. The Barberton Middle School Construction Project (“the project”) is estimated to cost approximately $30 million and is scheduled to be completed in several phases. In addition to the use of levy money from Barberton taxpayers, the project is also
{¶ 3} In March 2009, the Barberton City School District Board of Education sought bids for the first phase of the construction, known as the Early Site Work (“ESW”). In its request for proposals, the board specified that all bids were to include prevailing-wage-rate requirements as set forth in R.C. Chapter 4115. Eligible bids were to be submitted to the board by no later than March 25, 2009. Fechko, who is a member of the Northern Ohio Chapter of ABC, timely submitted a bid, incorporating into its bid the required prevailing-wage rates for Summit County. ABC, a national trade association composed of merit shop construction associates and contractors throughout the country, aids its members in addressing issues that are of concern industrywide.
{¶ 4} On or about April 1, 2009, the board awarded the ESW contract to Mr. Excavator. On April 3, 2009, Fechko and ABC (collectively, “bidders”), along with Barberton residents Dan Villers and Jason Antill (collectively, “taxpayers”), filed a verified complaint seeking to permanently enjoin the board and the OSFC from applying Ohio’s prevailing-wage requirement to the ESW project. Their complaint also sought a declaration that the bidding requirements and subsequent contracts imposing a prevailing-wage requirement were an abuse of the board’s discretion and unlawful. Simultaneously, they filed motions seeking a preliminary injunction, temporary restraining order, and expedited discovery. The trial court held a hearing, at which the magistrate denied the motions for a temporary restraining order and for expedited discovery and set the preliminary injunction and declaratory judgment for hearing on April 15, 2009.
{¶ 5} On April 8, 2009, the board entered into a written contract with Mr. Excavator for completion of the ESW project. On April 13, 2009, the board filed a motion to dismiss the complaint of the bidders and taxpayers under Civ.R. 12(B)(7) based on a failure to join an indispensable party pursuant to Civ.R. 19, namely the OSFC. In response, the bidders and taxpayers filed an amended verified complaint naming the OSFC and Mr. Excavator as defendants, in addition to the board. In May, the magistrate held a pretrial hearing at which he established a discovery schedule and set a trial date for mid-August.
{¶ 6} On May 28, 2009, the board filed a motion to dismiss under Civ.R. 12(B)(1) and (B)(6), arguing that the bidders and taxpayers lacked standing to bring their complaint and that they had failed to state a claim that would entitle them to relief. On that same day, the OSFC also filed a motion to dismiss arguing the same. Mr. Excavator likewise filed a motion to dismiss on June 17, 2009. The bidders and taxpayers opposed the foregoing motions, and the parties proceeded with discovery.
{¶ 8} On July 31, 2009, the trial court granted the motions to dismiss filed by the board, the OSFC, and Mr. Excavator. In doing so, it concluded that the bidders and taxpayers lacked standing and had failed to state a claim under Civ.R. 12(B)(6). The trial court also denied the bidders and taxpayers’ motion to amend their second verified complaint. The bidders and taxpayers timely appealed and sought a stay of the trial court’s decision as well as an injunction. This court denied the motion for stay and request for injunction, and the bidders and taxpayers appealed the denial to the Ohio Supreme Court. In the interim, the board and the OSFC filed a motion to dismiss the appeal as moot, arguing that the ESW project had been completed. The bidders and taxpayers opposed the motion to dismiss, and this court subsequently denied it. On September 21, 2009, the Ohio Supreme Court denied the bidders and taxpayers’ motion for stay and request for injunctive relief.
II
First Assignment of Error
The trial court erred in dismissing the amended verified complaint and holding that none of the plaintiffs had standing to bring this action under Civ.R. 12(B)(1).
{¶ 9} In their first assignment of error, the bidders and taxpayers argue that the trial court erred in concluding that they lacked standing to pursue the causes of action set forth in their complaint. We disagree.
{¶ 10} “The issue of standing is a threshold test that, once met, permits a court to determine the merits of the questions presented.” Hicks v. Meadows, 9th Dist. No. 21245,
The Bidders and Taxpayers’ Amended Verified Complaint
{¶ 11} In their amended verified complaint, the bidders and taxpayers challenge the use of prevailing wages as a bidding requirement and contractual term for work on the ESW project. Ohio’s prevailing-wage law, as set forth in R.C. Chapter 4115, “require[s] contractors and subcontractors for public improvement projects to pay laborers and mechanics the so-called prevailing wage in the locality where the project is to be performed.” Northwestern Ohio Bldg. & Constr. Trades Council v. Ottawa Cty. Improvement Corp.,
{¶ 12} In their amended verified complaint, the bidders and taxpayers allege that the “prevailing wage requirement included by the Board in the bid specifications for [the project] that are to be made part of the contract for the [ESW] renders the contract illegal * * * as the Board exceeded its authority under the law resulting in a misappropriation and misuse of public funds.” Therefore, they allege that “the Board exceeded its authority under the law resulting in a misappropriation and misuse of public funds” and “entered into an illegal contract and/or exceeded its authority * * * by mandating compliance with Ohio’s Prevailing Wage Law on the Project.” Additionally, the taxpayers and bidders maintain that “the OSFC does not require, nor can it require, the application of Ohio’s Prevailing Wage Law to the Project.”
{¶ 13} The trial court concluded that the bidders and taxpayers lacked standing to pursue the aforementioned claims alleged in their complaint. Given that
Fechko’s Standing
{¶ 14} Fechko alleges that the trial court failed to apply the correct standard of review in deciding the board’s, the OSFC’s, and Mr. Excavator’s motions to dismiss because the trial court did not accept Fechko’s factual allegations as true and draw all reasonable inferences in its favor. Fechko points to several excerpts from the trial court’s entry to support its claim that the trial court discredited the assertions set forth in its complaint and instead “drew adverse inference against [it].” These arguments, however, have little bearing on Fechko’s ability to assert that it has standing in this matter. Consequently, we focus our analysis on Fechko’s assertion that, as a bidder on the ESW project, it has standing to challenge the award of the bid and subsequent contract to another contractor, even if the bid award unlawfully incorporates prevailing-wage requirements. Though Fechko provides ample citations to case law that support its assertion that a party must have actually bid on a project in order to have standing to later challenge the bid award, those cases provide only the threshold requirement necessary to challenge the propriety of a bid award. See Ohio Contrs. Assn. v. Bicking (1994),
{¶ 15} This court has defined “actual injury” in terms of standing as “an invasion of a legally protected interest that is concrete and particularized.” Haley v. Hunter, 9th Dist. No. 23027,
{¶ 16} Fechko argues that it has suffered an actual injury by expending costs to prepare and submit a bid in response to unlawful bidding requirements imposed upon it by the board and the OSFC. Under the authority of Meccon, Inc. v. Univ. of Akron,
{¶ 17} Fechko asserts in its complaint that but for having to use prevailing wages in calculating its bid for the ESW project, its bid would have been approximately $10,000 less than Mr. Excavator’s. Therefore, Fechko speculates that had there been no requirement for use of prevailing wages, it would have been the lowest bidder, but based on the board’s “unlawful” application of R.C. Chapter 4115, it was not. Based on this speculation, we conclude that Fechko’s assertion that the prevailing wage requirement caused it any actual injury is abstract and suspect at best. Ohio Contrs. Assn.,
{¶ 18} Additionally, Fechko argues that it is entitled to recover its bid costs under the authority of Cementech, Inc. v. Fairlawn,
{¶ 19} While this court is obligated to accept Fechko’s factual allegations as true and make all reasonable inferences in its favor, doing so still fails to support a conclusion that Fechko suffered any actual injury as a result of the board and the OSFC’s requirement that bidders use prevailing wages in their bids. Fechko was unable to demonstrate to the trial court or to this court on appeal any instance where a bidder who was not the lowest responsible bidder was able to pursue a cause of action to recover its bid costs. Accordingly, the trial court did not err in finding that Fechko lacked standing in this matter.
ABC’s Standing
{¶ 20} ABC argues that it has associational standing to pursue relief on behalf of one of its trade association members, Fechko. The Ohio Supreme Court has explained:
[A]n association has standing on behalf of its members when “(a) its members would otherwise have standing to sue in their own right; (b) the interests it seeks to protect are germane to the organization’s purpose; and (c) neither the claim asserted nor the relief requested requires the participation of individual members in the lawsuit.” However, to have standing, the association must establish that its members have suffered actual injury.
Ohio Contrs. Assn.,
Taxpayers’ Standing
{¶ 21} The taxpayers argue that as residents and taxpayers of Barberton who have paid into a “special fund” by way of the bond levy that is financing the project, they have standing to pursue this action because they have an interest that differs from other taxpayers in Ohio. They rely on the seminal case for taxpayer standing, State ex rel. Masterson v. Ohio State Racing Comm. (1954),
{¶ 22} We similarly reject the taxpayers’ attempts to argue that this is a case in which damages or injury should be presumed. The only instance in which a court chose to do so was where a contract was awarded to a bidder in violation of the statutory requirements that the “award * * * be made to the lowest bidder.” State ex rel. Connors v. Ohio Dept. of Transp. (1982),
{¶ 23} The taxpayers gain no additional support for their assertion of standing based on the principles espoused by the Supreme Court in Racing Guild of Ohio, Local 304 Serv. Emps. Internatl. Union, AFL-CIO, CLC v. Ohio State Racing Comm. (1986),
{¶ 24} The taxpayers ask this court to align itself with the Seventh District’s decision in E. Liverpool City School Dist. ex rel. Bonnell v. E. Liverpool City School Dist. Bd. of Edn., 7th Dist. No.
{¶ 25} Based on the foregoing analysis, we conclude that the trial court did not err in concluding that the bidders and taxpayers lacked standing to pursue their complaint. Accordingly, their first assignment of error is overruled.
Second Assignment of Error
The trial court erred in holding that plaintiffs failed to state a claim upon which relief can be granted under Civ.R. 12(B)(6) when plaintiffs alleged that
{¶ 26} In their second assignment of error, the bidders and taxpayers argue that the trial court erred in dismissing their complaint for their failure to state a claim. Because we have already determined that the bidders and taxpayers lacked standing in this matter, this assignment of error is moot, and we decline to address it. App.R. 12(A)(1)(c).
Third Assignment of Error
The trial court erred in denying plaintiffs leave to file a second amended complaint following the disovery [sic] of new evidence.
{¶ 27} In their third assignment of error, the bidders and taxpayers argue that the trial court erred in denying their motion for leave to file a second amended verified complaint. We disagree.
{¶ 28} The decision to grant or deny a motion for leave to amend a pleading is within the discretion of the trial court. Hoover v. Sumlin (1984),
{¶ 30} The bidders and taxpayers filed their complaint for injunctive relief and declaratory judgment on April 3, 2009. Following the board’s first motion to dismiss, the bidders and taxpayers amended their complaint on April 24, 2009, to include the OSFC and Mr. Excavator as defendants. Thereafter, the trial court set August 10, 2009, as the trial date on the matter. Both the board and the OSFC filed motions to dismiss on May 28, 2009, and Mr. Excavator’s motion was filed on June 17, 2009. It was not until July 6, 2009, that the bidders and taxpayers requested leave to file a second amended complaint in the matter, asserting new claims as to future requests for bids on subsequent phases of the project.
{¶ 31} The bidders and taxpayers reflect in their appellate brief that they objected to the trial court’s scheduling decision by noting that it resulted in an “extraordinary three-month delay” for a decision in this matter. They now complain, however, that the trial court erred by denying their request to amend their complaint, filed nearly two months later, which by their own description would have resulted in “additional claims [based on] newly discovered facts.” Moreover, the bidders and taxpayers’ request for leave to amend was untimely, as it was filed less than a month from the trial date, while dispositive motions were pending. See, e.g., Trustees of Ohio Carpenters’ Pension Fund v. United States Bank Natl. Assn., 8th Dist. No. 93295,
Ill
{¶ 32} The bidders and taxpayers’ first and third assignments of error are overruled. The bidders and taxpayers’ second assignment of error is moot. The judgment of the Summit County Court of .Common Pleas is affirmed.
Judgment affirmed.
Concurrence Opinion
concurring in judgment only.
{¶ 33} I agree with the majority’s judgment and most of its opinion. I write separately to note my enlistment in' Judge Fain’s war on “the most unfortunate formulation * * * to appear in Ohio appellate jurisprudence: ‘The term “abuse of discretion” connotes more than an .error of law or of judgment.’ ” EnQuip Technologies Group, Inc. v. Tycon Technoglass, S.R.L., 2nd Dist. Nos. 2009 CA 42 and 2009 CA 47,
