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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. I just wanted to point out that Congressman Jim Sensenbrenner, Senator Feinstein, former Senate majority leader Bill Frist, and former attorney general John Ashcroft are responsible for this rubbish. We need to keep a eye on these corrupt, arrogant, and incompetent fools.

  2. Well I guess our politicians have decided to give these idiot federal prosecutors unlimited power. Now if I guy bounces a fifty-dollar check, the U.S. attorney can intentionally wait for twenty-five years or so and have the check swabbed for DNA and file charges. These power hungry federal prosecutors now have unlimited power to mess with people. we can thank Wisconsin's Jim Sensenbrenner and Diane Feinstein, John Achcroft and Bill Frist for this one. Way to go, idiots.

  3. I wonder if the USSR had electronic voting machines that changed the ballot after it was cast? Oh well, at least we have a free media serving as vicious watchdog and exposing all of the rot in the system! (Insert rimshot)

  4. Jose, you are assuming those in power do not wish to be totalitarian. My experience has convinced me otherwise. Constitutionalists are nearly as rare as hens teeth among the powerbrokers "managing" us for The Glorious State. Oh, and your point is dead on, el correcta mundo. Keep the Founders’ (1791 & 1851) vision alive, my friend, even if most all others, and especially the ruling junta, chase only power and money (i.e. mammon)

  5. Hypocrisy in high places, absolute immunity handed out like Halloween treats (it is the stuff of which tyranny is made) and the belief that government agents are above the constitutions and cannot be held responsible for mere citizen is killing, perhaps has killed, The Republic. And yet those same power drunk statists just reel on down the hallway toward bureaucratic fascism.

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