Lowe v. City of Hot Springs

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The City of Hot Springs published a request for competitive proposals from private entities for utilization of real property owned by the City. Both Pete Lien & Sons, Inc. (“Lien”) and Croell Redi-Mix (“Croell”) submitted proposals. The City accepted Lien’s proposal, and a final contract was negotiated. Croell subsequently commenced this action seeking declaratory and injunctive relief to require the City to reject all proposals and restart the process, contending that the contract involved the procurement of services and that the City had not followed the services procurement requirements of S.D. Codified Laws 5-18A-6 and 5-18A-7. Lien argued that the contract was for the lease of real property, and therefore, the service procurement statutes did not apply. The circuit court granted summary judgment to Lien and the City. The Supreme Court affirmed, holding that the City’s contract with Lien involved the lease of the City’s property rather than the procurement of services, and because the City followed the statutory leasing procedures, summary judgment was properly granted. View "Lowe v. City of Hot Springs" on Justia Law