Bodine Electric of Champaign v. City of Champaign

In Bodine Electric of Champaign v. City of Champaign, 305 Ill. App. 3d 431, 436, 711 N.E.2d 471, 238 Ill. Dec. 368 (1999), defendant city advertised an invitation to bid on an expansion project, with the condition, as contained in its bid packet instructions and a city ordinance, that bidders post a 10% bid bond. Following bidding, plaintiff Bodine Electric had submitted the lowest bid. However, it was soon discovered that Bodine had submitted only a 5% bid bond, instead of the required 10%; the next lowest bidder, Potter Electric, had complied with all the requirements of the bidding instructions. Upon a pre-award meeting between the city and Potter, Bodine filed a complaint seeking injunctive and declaratory relief. The trial court held against Bodine, finding that not only was the bid requirement clear in the pre-bid package and in the city ordinance, but also that Bodine's variance from it gave Bodine a substantial advantage over other bidders and, thus, was material and rendered its bid nonresponsive. See Bodine, 305 Ill. App. 3d at 435, 437. On appeal, the Bodine court affirmed. Expounding on the trial court's reasoning, it noted that while Bodine may remain bound by its bid, it was not bound to the same extent as other bidders. See Bodine, 305 Ill. App. 3d at 437. Rather, since its bid bond was insufficient, Bodine had an advantage because it would lose significantly less money in liquidated damages if it chose to walk away from the project. See Bodine, 305 Ill. App. 3d at 437. Further, the Bodine court noted that, had the city concluded that this variance was not material and waived it, the city "would then have been in the difficult position of characterizing one of its ordinances as an informality" and "could have just as easily been sued" by Potter for violating its own ordinance. Bodine, 305 Ill. App. 3d at 440. Instead, because the city appropriately followed its pre-bid instructions and its ordinance, there was no fraud, lack of authority, unfair dealing, favoritism or similar arbitrary conduct requiring reversal. See Bodine, 305 Ill. App. 3d at 440.