Opinion ID: 1726112
Heading Depth: 1
Heading Rank: 6

Heading: whether the circuit court erred in awarding laws construction co. damages against the city of durant for lost profits and attorney fees?

Text: ¶ 27. The next two issues are considered together because both raise the question as to whether the circuit court had jurisdiction to hold a hearing to determine damages in conjunction with Section 11-51-75. ¶ 28. The City contends that the circuit court lacked authority to hold a hearing to award monetary damages. Section 11-51-75 provides the proper means to appeal a municipal's decision. In the case sub judice, Laws correctly challenged the City's decision to award the project contract pursuant to § 11-51-75. See South Cent. Turf, Inc. v. City of Jackson, 526 So.2d 558 (Miss.1988). Section 11-51-75, in pertinent part, states, If the judgment be reversed, the circuit court shall render such judgment as the board or municipal authorities ought to have rendered, and certify the same to the board of supervisors or municipal authorities. Costs shall be awarded as in other cases. Under normal circumstances, the circuit court would have ordered the City not to consider King's bid, and either accept the next lowest bid or reject all bids and rebid the project. However, rather than wait for a decision of the appeal, the City proceeded with the illegal award of the contract. At the initial hearing, King had substantially completed the project. The City conceded that it would have accepted Laws' bid and awarded it the contract for the Project if Laws' bid had been the lowest bid. Furthermore, the City would have accepted Laws' bid and awarded Laws the contract for the Project if the City had neither opened nor considered King's bid. Since the project was precluded from being awarded to Laws due to its substantial completion, the circuit court determined that Laws was entitled to recover damages. The circuit court reasoned that to hold otherwise is to deny a remedy to a wrong and to provide an avenue for which public bodies may disavow bidding laws. Judge Bogen assessed the situation as follows, I can't do [what the statute proscribes] but I can't permit the City of Durant to act illegally and escape all liability.... ¶ 29. Thus, the issue arises whether the circuit court, sitting as an appellate court pursuant to § 11-51-75, without a jury, may award and determine compensatory damages and attorney's fees. ¶ 30. McIntosh v. Amacker, 592 So.2d 525 (Miss.1991), acts as a guide in revealing proper procedure pursuant to § 11-51-75. In McIntosh, we determined that a landowner failed to bring an appeal from the board of supervisors pursuant to § 11-51-75. We denied McIntosh's appeal. While failing to bring the appeal under the statute, McIntosh did have a claim under § 65-7-67 which provides for damages. Thus, McIntosh should have complied with the bill of exceptions requirement in § 11-51-75. After compliance with § 11-51-75, McIntosh would have been allowed a jury trial under § 65-7-67. Thus, pursuant to § 11-51-75, we could rule on the bill of exceptions and then remand the case to follow the provisions in § 31-3-21. However, in the case sub judice, § 31-3-21 does not provide a remedy for Laws. Rather the remedy must be afforded Laws based on public policy and contract damages. ¶ 31. Section 31-3-21 is clear and unambiguous. The City violated the statute when opening and considering King's bid. For a legal wrong, there must be a remedy. In support of this contention, Laws cites to Section 24 of Article 3 of the Mississippi Constitution which states: All courts shall be open; and every person for an injury done him in his lands, goods, person, or reputation, shall have remedy by due course of law, and right and justice shall be administered without sale, denial, or delay. ¶ 32. In Moore v. Sanders, 558 So.2d 1383, 1385 (Miss.1990), we refused to grant an injunctive relief sought in chancery court because proper jurisdiction was in circuit court pursuant to § 11-51-75. We stated that the statute provided a plain, adequate, speedy, and complete remedy for a judicial determination. Moore, 558 So.2d at 1385. In order for a complete remedy to be afforded, the continuing unlawful acts by the Board of Supervisors cannot be allowed to circumvent any liability. If there is no remedy, justice certainly will not prevail and the City will be given a means to directly violate the statutory law and suffer no consequences unless the bidder also happens to be a taxpayer of that particular municipality. As stated by this Court in 1891: The misconduct of officials should not be permitted to defeat litigants of clear rights accorded them by law, and the circuit court, by virtue of its inherent powers as an appellate tribunal, in proper cases, should exercise its authority in restraining the inferior tribunal, and constraining it to yield obedience to lawful requirement. Robertson v. Mhoon, 68 Miss. 712, 714, 9 So. 887 (1891). Although this case was decided long ago, it still is applicable to the case at bar. As explained by the City, the purpose of Chapter 3 of Title 31 of the Mississippi Code of 1972 can be found in the language of § 31-3-2 which states as follows: The purpose of Chapter 3, Title 31, Mississippi Code of 1972, is to protect the health, safety and general welfare of all persons dealing with those who are engaged in the vocation of contracting and to afford such persons an effective and practical protection against incompetent, inexperienced, unlawful and fraudulent acts of contractors. Miss.Code Ann. § 31-3-2 (1990). If meaningful damages are not allowed then the legislative intent of the statutory bidding laws that public contracts are to be awarded on a purely competitive basis cannot be carried out. ¶ 33. The case of Canton Farm Equipment, Inc. v. Richardson, 501 So.2d 1098 (Miss.1987) is instructive on the issue of damages. It involved the rejection of a low bid for sale to the county of two backhoes. This Court reversed a motion to dismiss and found that the circuit court had subject matter jurisdiction, and the complaint and amended complaint did state a claim upon which relief could be granted under Miss. Code Ann. §§ 19-13-37 and 31-7-57 but any relief on those claims would be obtained on behalf of Madison County. Canton Farm Equip., 501 So.2d at 1109. While addressing the issue of standing this Court held that Canton's personal claims are within the pendent jurisdiction of the court. The Court stated, [t]hat those claims might have been asserted via an appeal under Section 11-51-75 is beside the point. Because they arise out of a common nucleus of operative fact with the Section 19-13-37/31-7-57 claims, Canton's personal claims may be asserted in this action. Canton Farm Equip., 501 So.2d at 1109-10. Based on the Canton case, Laws, as a bidder, can proceed in circuit court to recover damages for itself based on the Board's violation of the statute because it has standing to prove the violation and any resulting damages it has suffered. Id. at 1105-06. ¶ 34. Laws' brought this action solely under § 11-51-75. The Circuit Court found that the contract was illegally granted to King and this Court is in agreement with this determination. Even under the plain language of the statute, it seems that the circuit court had the authority to render such judgment as the board or municipal authorities ought to have rendered by awarding the contract to Laws. By doing so then Laws has a contract claim for breach and contract damages since the City allowed another company to provide the same services that Laws had a legal right to perform. Compensatory damages under the law of contracts are the proper measure of damages for an aggrieved bidder which was entitled to the award of the contract. Therefore, this Court holds that Laws is entitled to damages measured by the law of contracts where a complete and adequate remedy is available, the enforcement of the statutory bid laws are upheld and legislative intent to make sure that public contracts are awarded on a competitive basis and not for any other purpose is reinforced. ¶ 35. The City contends that it was denied the right to a trial by jury as guaranteed by Section 31 of Article 3 of the Mississippi Constitution which provides: The right of trial by jury shall remain inviolate, but the legislature may, by enactment, provide that in all civil suits tried in the circuit and chancery court, nine or more jurors may agree on the verdict and return it as the verdict of the jury. ¶ 36. The City's jury trial request was denied by the circuit court on the basis that the impaneling of a jury in this cause would be inconsistent with the circuit court's role as an appellate court pursuant to § 11-51-75. The right to trial by jury under the State Constitution is guaranteed only in cases in which, at common law, a jury was required. Where an action involves remedies recognized at common law, it must preserve to parties their right to a jury trial. Curtis v. Loether, 415 U.S. 189, 195, 94 S.Ct. 1005, 39 L.Ed.2d 260 (1974). If the action is properly viewed as one for damages only, our conclusion that this is a legal claim obviously requires a jury trial on demand. Curtis, 415 U.S. at 196 n. 11, 94 S.Ct. 1005 n. 11. The Seventh Amendment, for example, entitled the parties to a jury trial in actions for damages to a person or property, for libel and slander, for recovery of land, and for conversion of personal property. Ross v. Bernhard, 396 U.S. 531, 533, 90 S.Ct. 733, 24 L.Ed.2d 729 (1970). However, this Court has held that state courts are not controlled by the Seventh Amendment. Gulf & S.I.R.Co. v. Hales, 140 Miss. 829, 105 So. 458, 460-61 (1925); Wells v. Panola County Bd. of Educ., 645 So.2d 883 (Miss.1994). Instead this case is controlled by the Mississippi Constitution. ¶ 37. The right to jury trial guaranteed by Section 31 applies only to those cases in which a jury trial was necessary at common law. Wells, 645 So.2d at 898. The case sub judice was appealed to the circuit court and the cause of action derives from statutory law as opposed to common law. Like the tort claim under the Accident Contingent Fund Statutes in issue in the Wells case, the public bid statutes also did not exist at common law. In addition, the circuit court was sitting as an appellate court in the case at bar pursuant to Miss.Code Ann. § 11-51-75. Therefore, this Court finds that the City of Durant was not entitled to a jury trial in the circuit court. ¶ 38. In conclusion, the circuit court's interpretation of § 31-3-21 and its award of damages to Laws is affirmed. ¶ 39. AFFIRMED. PRATHER, C.J., PITTMAN, P.J., and McRAE, JAMES L. ROBERTS, Jr. and WALLER, JJ., concur. BANKS, J., dissents with separate written opinion joined by SMITH and MILLS, JJ.