ILNews

Justices find school corporation circumvented public bidding laws

Back to TopCommentsE-mailPrintBookmark and Share

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.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Being dedicated to a genre keeps it alive until the masses catch up to the "trend." Kent and Bill are keepin' it LIVE!! Thank you gentlemen..you know your JAZZ.

  2. Hemp has very little THC which is needed to kill cancer cells! Growing cannabis plants for THC inside a hemp field will not work...where is the fear? From not really knowing about Cannabis and Hemp or just not listening to the people teaching you through testimonies and packets of info over the last few years! Wake up Hoosier law makers!

  3. If our State Government would sue for their rights to grow HEMP like Kentucky did we would not have these issues. AND for your INFORMATION many medical items are also made from HEMP. FOOD, FUEL,FIBER,TEXTILES and MEDICINE are all uses for this plant. South Bend was built on Hemp. Our states antiquated fear of cannabis is embarrassing on the world stage. We really need to lead the way rather than follow. Some day.. we will have freedom in Indiana. And I for one will continue to educate the good folks of this state to the beauty and wonder of this magnificent plant.

  4. Put aside all the marijuana concerns, we are talking about food and fiber uses here. The federal impediments to hemp cultivation are totally ridiculous. Preposterous. Biggest hemp cultivators are China and Europe. We get most of ours from Canada. Hemp is as versatile as any crop ever including corn and soy. It's good the governor laid the way for this, regrettable the buffoons in DC stand in the way. A statutory relic of the failed "war on drugs"

  5. Cannabis is GOOD for our PEOPLE and GOOD for our STATE... 78% would like to see legal access to the product line for better Hoosier Heath. There is a 25% drop in PAIN KILLER Overdoses in states where CANNABIS is legal.

ADVERTISEMENT