Justices find school corporation circumvented public bidding laws

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The southern Indiana school corporation that facilitated renovations of its warehouse through an agreement with a local public school endowment organization violated Indiana Public Bidding Laws, the Indiana Supreme Court ruled Thursday. The justices rejected taxpayers’ claims that the process also constituted a violation of the Antitrust Law.

The Evansville Vanderburgh School Corp. in August 2010 approached the EVSC Foundation regarding renovations of a warehouse into the school corporation’s administrative offices. The school corporation would convey the building to the foundation, which would then contract with Industrial Contractors Inc. for building renovations. The school corporation selected this arrangement because the foundation wasn’t subject to public bidding laws, so renovation could occur more quickly.

The foundation would then sell the building back to the school corporation, accepting installment payments for the “sale” price in the exact amount and on the exact schedule that payments under ICI’s construction contract were due. The foundation would make those payments to ICI.

A group of taxpayers consisting of area contracting businesses who paid taxes in the school district filed this lawsuit, seeking declaratory judgment and injunctive relief alleging violations of the public bidding statutes and the Antitrust Act.

The trial court ruled in favor of the defendants, noting they circumvented the public bidding statutes, but no violation had occurred. The Court of Appeals reversed and ordered the trial court to consider the antitrust issues since it did not do so after finding no public bidding violation.

The Supreme Court affirmed the Court of Appeals decision in Alva Electric, Inc., Arc Construction Co., Inc., Danco Construction, Inc., Deig Bros. Lumber & Construction Co., Inc., et al. v. Evansville-Vanderburgh School Corporation and EVSC Foundation, Inc., 82S01-1307-PL-473.  

“We want to make clear that the holding in this case should not be construed to mean that all (or even most) contracts entered into by private entitles like Foundation ‘for the ultimate benefit of and in cooperation with a political subdivision like School Corporation’ necessary run afoul of the Public Work Statute,” Justice Robert Rucker wrote.

It appears the foundation was acting on behalf of the school corporation, although the justices declined to discuss the elements of an agency relationship since the record in the case is not developed as to this matter.

Instead of remanding the antitrust issue to the trial court, the justices agreed with the taxpayers that this issue could be decided on the record.

The taxpayers argued their injuries consist of a supposedly higher price for the building renovation than would have resulted if the project had been publicly bid and the loss of a contract which would have ultimately been awarded to one of them. But they designated no evidence to support a conclusion that these injuries in fact occurred, Rucker wrote.

“We agree with Taxpayers it is hornbook antitrust law that under ‘agreement eliminating competitive bidding … a seller will be able to charge a higher price than under conditions of perfect competition,’” Rucker continued. “But Taxpayers provided no evidence that is what happened here. And without evidence of injury, Taxpayers are not entitled to relief.”

The justices remanded with instructions for entry of summary judgment in favor of the taxpayers on the public bidding violation issue as well as a declaration that the transactions effected by the school corporation violated Indiana’s Public Work Statute.


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  1. This is ridiculous. Most JDs not practicing law don't know squat to justify calling themselves a lawyer. Maybe they should try visiting the inside of a courtroom before they go around calling themselves lawyers. This kind of promotional BS just increases the volume of people with JDs that are underqualified thereby dragging all the rest of us down likewise.

  2. I think it is safe to say that those Hoosier's with the most confidence in the Indiana judicial system are those Hoosier's who have never had the displeasure of dealing with the Hoosier court system.

  3. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  4. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  5. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.