Rath v. City of Sutton

The Nebraskan city of Sutton (defendant) invited bids for a construction project. By the set deadline, Sutton-based contractor Van Kirk Sand & Gravel, Inc. (Van Kirk) (defendant) submitted a bid of $1.290 million, while J.J. Westhoff Construction Company, Inc. (Westhoff), an out-of-town contractor, submitted a bid of $1.274 million. The bids were otherwise identical in specifications. After a public meeting, the Sutton city council accepted Van Kirk’s bid, despite Westhoff’s protest that it was the lowest responsible bidder. The city council’s position was that awarding the contract to a local bidder would ultimately be more beneficial to the city than $16,000 in cost savings on the contract. A city taxpayer, Marlowe Rath (plaintiff) sued the city, Van Kirk, and other parties (collectively, the city) (defendants), seeking among other relief a temporary and permanent injunction against the spending of any public funds on the project until it was awarded to the lowest responsible bidder. The trial court found that Westhoff was the lowest responsible bidder by $16,000 but denied Rath’s request for an injunction, adjudging that he had not demonstrated irreparable injury. Rath appealed the court’s judgment. While the appeal was pending, Van Kirk completed the construction project, and the city paid Van Kirk for its services. Prior to oral argument, the city filed a motion to dismiss the appeal as moot.