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School bus drivers can’t sue school corporation for collusion

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The lawsuit for collusion brought by 13 North Gibson School Corporation bus drivers against the school corporation as a result of bids for a transportation services contract failed on interlocutory appeal before the Indiana Court of Appeals.

Bus Corp. was awarded two contracts with the school corporation, which would cover bus transportation from 2011 to 2015.  The school corporation then scheduled “negotiation sessions” with individual drivers who wanted to renew or acquire a contract for their respective routes. Thirteen of the drivers sued the school corporation based on how the negotiation sessions were carried out – using a “reverse auction” process. The drivers were presented with a contract at a reduced price resulting from the “reverse auction” and told by the school corporation’s representative that if the contracts at the stated daily rates weren’t executed by a certain date, the school corporation would award the contract to the next lowest bidder – Bus Corp.

The drivers alleged collusion in their suit and sought compensatory damages under the Indiana Antitrust Act. The school corporation tried to have the suit dismissed, but the trial judge denied the motion.

On interlocutory appeal, the COA reversed. The drivers, as unsuccessful bidders, don’t have a private right of action against the school corporation, even if they allege collusion, wrote Chief Judge Margret Robb. The school corporation also can’t be held liable for damages under the Indiana Antitrust Act. The appellate court cited Brownsburg Cmty. Sch. Corp. v. Natare Corp., 824 N.E.2d 336 (Ind. 2005), reading that decision to mean that governmental entities can’t be liable for actions prohibited by the Indiana Antitrust Act. That Act provides a cause of action for unsuccessful bidders against other bidders.

Robb pointed out that a suit against Bus Corp. may have been a better strategy. The drivers have no remedy against the school corporation.

The judges ordered the trial court to enter an order consistent with the appellate opinion.

 

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  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

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  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

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  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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