Opinion ID: 1963122
Heading Depth: 1
Heading Rank: 3

Heading: existence of emergency

Text: The declaration of an emergency contemplated by R.S. 40:50-1, supra, ex necessitate must be a declaration by the body having the authority to enter into a contract thereunder. The question involved on this aspect of the case is whether there was a valid declaration of emergency by the Authority. It is clear that the city's emergency resolution of December 16, 1952 was abortive since the contract of December 31, 1952 was entered into by the Authority as an independent body. The statute requires the body having charge thereof to declare the emergency. The defendants, however, insist that the Authority's resolution of December 15, 1952 calling upon the city to declare an emergency constituted compliance with the statutory requirement. No question is raised as to whether the resolution involved was adopted by a four-fifths vote of the membership of the Authority. However, assuming that the Authority's resolution of December 15, 1952 was technically adequate to constitute a declaration of the existence of an emergency, it was defective for failure to state the nature of the emergency and for failure to declare the approximate amount to be expended in meeting the emergency. Cf. Murphy v. West New York, supra (130 N.J.L., at p. 342). Although the word emergency as used in a statute need not always be construed to have the precise meaning accorded it by lexicographers, nevertheless words and phrases in statutes are to be given their generally accepted meaning unless inconsistent with the manifest intent of the Legislature or unless a different meaning is expressly indicated. R.S. 1:1-1; Grogan v. De Sapio, 11 N.J. 308, 323 (1952). There is in R.S. 40:50-1, supra, no legislative description of types of emergent situations such as was contained in the statute, L. 1919, c. 178, subjected to review in Lyons v. Bayonne, supra. We are not disposed to determine, therefore, whether the full weight of the decision in the Lyons case, supra, is applicable here. Mr. Justice Minturn in the Lyons case, supra, declared (101 N.J.L., at p. 457):    The emergency contemplated by the Legislature is not one created by the conception of the need of the local body, and due in great measure to the perversity and antagonism of local conditions, or the want of foresight of the (local) body at the proper time in failing to respond to conditions as they were represented.    The situation in the present matter is analogous. In general parlance an emergency means a sudden or unexpected occurrence or condition calling for immediate action. Carlson v. Hannah, 6 N.J. 202, 214 (1951); Frank v. Bd. of Education of Jersey City, supra (90 N.J.L., at p. 278). We need not determine on this appeal whether under this definition, even if it is deemed the sole measure of the emergency provision of R.S. 40:50-1, supra, a real emergency might arise by virtue of municipal officers' laxity, a contractor's failure or breach of contract, or other comparable reasons. It requires no citation of precedent nor exercise of the imagination to demonstrate the danger to the public health which might result from accumulations of garbage and other refuse in the streets of a municipality. However, see Sandfort v. Atlantic City, 134 N.J.L. 311, 314 ( Sup.Ct. 1946). The situation disclosed in the pleadings, depositions and affidavits in the present case, in despite of the fortuitous circumstance that the taxpayers of the City of Jersey City may have benefited as a result, is one that under no sense of the word, even assuming good faith on the part of defendants, could be described as an emergency. On its face it appears at best to have been an attempt to avoid the pertinent legislative enactments and public responsibility. Compare Driscoll v. Burlington-Bristol Bridge Co., 8 N.J. 433, 477 (1952), certiorari denied Burlington County Bridge Commission v. Driscoll, 344 U.S. 838, 73 S.Ct. 25, 97 L.Ed. 652 (1952), rehearing denied 344 U.S. 888, 73 S.Ct. 181, 97 L.Ed. 687, 123 (1952). The first step in the maze recorded herein was the effort of the city to retain its control over the scavenger contract  the October 1952 advertisement of the city for bids. In December 1951 the city had created the Authority under the Incinerator Authorities Law, L. 1948, c. 348 ( N.J.S.A. 40:66 A -1 et seq. ). The Authority organized in January 1952. Although a municipal agency, L. 1948, c. 348, sec. 4, as amended by L. 1950, c. 265, sec. 1 ( N.J.S.A. 40:66 A -4), the Authority was clothed by the Legislature with the status of a public body politic and corporate constituting a political subdivision of the State established as an instrumentality exercising public and essential governmental functions.  (Emphasis supplied) L. 1948, c. 348, sec. 7 ( N.J.S.A. 40:66 A -7). Compare De Lorenzo v. City of Hackensack, 9 N.J. 379 (1952); Hill v. Borough of Collingswood, 9 N.J. 369, 372 (1952); Glick v. Trustees of Free Public Library, 2 N.J. 579, 584 (1949). In addition, this statute expressly provided that after the creation of an incinerator authority, the sponsor municipality is prohibited from granting scavengers' licenses and from entering into    any contract for, the collection, treatment and disposal of garbage and refuse   . L. 1948, c. 348, sec. 27 ( N.J.S.A. 40:66 A -27). Clearly, these provisions not only placed the responsibility for garbage and refuse collection in the Authority but also withdrew the power to act in the premises from the city. Therefore the city, tardily recognizing the plain mandate of the statute it had so recently invoked, properly rejected the October bid of the corporate plaintiff  a bid it had had no power to invite. As hereinbefore stated, the Authority next advertised for bids for the 1953 scavenger contract. This was in November 1952. The bid of the corporate plaintiff was admitted to have been made in full compliance with the proposals and specifications, at the proper place and time (November 24, 1952). Being the sole bid, it was also the lowest bid. It was admitted that this bid was rejected for the expressed reason that its rejection was in the best interests of the City of Jersey City. Following the rejection of the November bid, the Authority again advertised for bids for the 1953 scavenger contract in December, 1952. As hereinbefore noted, the corporate plaintiff submitted a timely bid that defendants city and Authority admit complied in all respects with the proposals and specifications. The only other bid, by Municipal Contracting Co., was disqualified, a fact also admitted by the city and the Authority and corroborated in the depositions without dispute. This December bid of the corporate plaintiff appears to have been valid and could have been accepted. Mr. Sudnik, one of the commissioners and secretary of the Authority, even testified on deposition that he didn't know whether the corporate plaintiff's bid was too high. Upon the rejection of this bid, the Authority by resolution on December 15, 1952 sought to induce the city to declare an emergency under R.S. 40:50-1, supra. Under the Incinerator Authorities Law, L. 1948, c. 348, supra, the Authority's request was ultra vires, as was the city's purported compliance therewith by resolution on December 16, 1952. Further, the nature of the emergency and the amount estimated to be necessary to meet the emergency, elements specifically required by R.S. 40:50-1, supra, were notoriously lacking in both the resolution of the Authority (dated December 15, 1952) and the resolution of the city (dated December 16, 1952). There was a situation neither sudden nor unforeseen, brought about by the decision of the Authority twice in succession to reject the bid of the lowest responsible bidder under R.S. 40:66-4, as amended, supra, as well as by R.S. 40:50-1, supra, and by resort to the emergency proviso to award a contract for the same term to another contractor who had not placed a bid. Cf. Lyons v. Bayonne, supra; Murphy v. West New York, supra . It is well settled that where a contract is awarded the low bid ordinarily should be accepted in preference to a higher bid (or in preference to a non-bidding contractor) where the low bidder is a responsible party and has met the specifications (as is here admitted). A.C. Schultes & Sons v. Haddon Twp., 8 N.J. 103, 109, 110 (1951). Cf. Shaw v. Trenton, 49 N.J.L. 339, 342 ( Sup.Ct. 1887), expressly approved on this point but reversed on other grounds, 49 N.J.L. 638 ( E. & A. 1887); Sellitto v. Cedar Grove Township, 133 N.J.L. 41, 42-44 ( Sup.Ct. 1945). Assuming that the Authority had the reserved right to reject all bids in the best interests of the municipality, however, no bidder could claim any contractual rights until he had been awarded the contract. Cf. Faist v. Hoboken, 72 N.J.L. 361, 364 ( Sup.Ct. 1905); Armitage v. Newark, 86 N.J.L. 5, 9 ( Sup.Ct. 1914). In the latter case, however, the former Supreme Court held that even where the right to reject any and all bids is properly reserved, the statute may not be evaded under the color of the rejection `of any and all bids.' While a true emergency might arise by virtue of a total lack of bidding in compliance with reasonable proposals and specifications by responsible bidders, sanction of the course here pursued would be a subversion of the legislative intent expressed in R.S. 40:50-1, supra. Cf. Grogan v. De Sapio, 11 N.J. 308, 316-317 (1953). As an example, the deposition of Mr. Sudnik shows that the stated reason the Authority considered the situation emergent was that it desired to obtain the best possible offer for the City. Mr. Sudnik further testified that the Authority did not have enough time to readvertise and suggested that the Authority members should not be required to work over the Christmas holidays. When asked, Why couldn't you have had your meeting between the holidays? Mr. Sudnik testified Because the chairman didn't call it. Further, when asked why the so-called emergency contract had been let for a term of one year rather than for the contemplated emergency period of two months, Mr. Sudnik testified (on January 21, 1953), I wouldn't recall the exact reason for that now. These, of course, are but examples of the voluminous testimony in the depositions filed in this cause, of which a considerable portion was included in the appendix of one or more of the parties and has been thoroughly scrutinized. No true emergency existing under the statute and no declaration of emergency and statement of the nature thereof having been made as required by the statute, the contract of December 31, 1952 between Hudson and the Authority was ultra vires. This result renders it unnecessary to consider the allegations of collusion and bad faith contained in the complaint, or the significance (if any) of the fact (admitted by Hudson) that Hudson was incorporated on December 31, 1952. Moving now to the February 3, 1953 resolution of the Authority, we find that the admitted facts disclose no real emergency. A third bidding had been effected in which bids were submitted on January 19, 1953. This was for a contract period beginning March 1, 1953. It is noted, without resting our determination thereon, that the Authority, had it deemed the situation truly emergent, should have advertised for bids for a contract period beginning February 1, 1953 at the latest. It would seem that there would have been ample time to act on such bids between January 19, 1953, when they were submitted, and February 1, 1953. This was not done, however, and in view of the fact that the judgment was rendered without the determination of the element of bad faith, as it was not essential to do so, it may be assumed for the purpose of this appeal that the Authority acted in good faith. The Authority's resolution of February 3, 1953 declared the existence of an emergency. It stated the approximate amount to be expended, namely, not more than $3,416.66 per day, and a total not in excess of $75,166.52 for a period beginning February 4, 1953 and to end when the litigation concerning the December 31, 1952 contract with Hudson, ante, should be brought to its ultimate conclusion. The resolution in these particulars complied with R.S. 40:50-1, supra, provided it was adopted by a four-fifths vote of the Authority. The resolution also purported to state the nature of the emergency, the remaining statutory prerequisite to the making of a contract without competitive bidding. The gist of the statements in the resolution concerning the nature of the alleged emergency was no contract for the removal of garbage and refuse    is operative    and the failure to remove the same shall constitute a menace to the public health and safety. There was contained in the resolution, however, no declaration that the Authority was unable to effect scavenger collections directly during the interim between February 3, 1953 and March 1, 1953, nor that there was any imminent danger to public health. The Authority could exercise the power to make scavenger collections directly under R.S. 40:66-1 by virtue of its status as a political subdivision of the State    exercising public and essential governmental functions. L. 1948, c. 348, sec. 7 ( N.J.S.A. 40:66 A -7), supra. This power it obviously had. The record does not demonstrate that it could not effect collections of garbage and other refuse, but merely that it felt a contract with a certain private corporation was more advantageous. Further, the record demonstrates that the Authority was able to do the scavenger work directly and that it did so from February 6, 1953 to March 1, 1953. Upon these facts, and the application thereto of the principles of law hereinabove expressed, it is apparent that there was no real emergency on February 3, 1953 and that a true emergency was not described in the Authority's resolution of February 3, 1953. Therefore, no genuine issue of a material fact remained and summary judgment declaring the February 3, 1953 per diem contract with Hudson ultra vires was proper as a matter of law. It follows that both Hudson's December 31, 1952 and February 3, 1953 contracts with the Authority, being ultra vires, were unenforceable against the Authority.