Alabama Attorney General Opinion 1979-0062

• OFFICE OF THE ATTORNEY GENERAL CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA LEE L. HALE DEPUTY ATTORNEY GENERAL WILLIAM M. BEKURS. JR. EXECUTIVE ASSISTANT CHIEF ASSISTANT ATTORNEY GENERAL WALTER S. TURNER February 9, 1979 ADMIX' IVE SUILDING 6/I NORTH UNION STREET MONTGOMERY. AREA (205). 634-5150 JANIE NOBLES ADMINISTRATIVE ASSISTANT Honorable Hugh Allen Mayor City of Demopolis P. O. Box 580 Demopolis, Alabama 36732 Municipalities - Contracts - Competitive Bid Law In the absence of fraud, a city may pay, under the legal theory of quantum meruit, for the repair of city owned equipment even though the contract pursuant to which the repair was made is void. Dear Sir: In a recent letter addressed to this office, you made the following request: "In November of 1978, the City of Demopolis contacted Warrior Tractor and Equipment Company, Inc. of Tuscaloosa for an estimate to repair a City owned backhoe. A verbal estimate of approximately $1500.00 - $1600.00 was given and a date set to send the machine to Tuscaloosa. In route to TUscaloosa the machine was involved in an accident and returned to Demopolis without going to be repaired. Approximately one week later the machine was sent to TUscaloosa for an estimate to completely repair the machine. Through an error in communications a purchase order was issued by the Street Department Clerk stating that the machine was to be completely repaired. On armkial at the Honorable Hugh Allen 2-9-79 Demopolis, Alabama equipment dealer the driver was asked what we wanted dome to the machine. The driver stated that the City sent the machine to be repaired and gave the purchase order to the shop foreman. The machine has been repaired and a bill sent to the City in the amount of $6,943.50. Upon receiving the bill I contacted Warrior Tractor and Equipment Company in Tuscaloosa to determine who authorized the repairs. After talking with them, our Street Department Clerk, and the driver, the above sequence of events is what took place: At this time, I have not paid the bill. Without bids being taken I have no authority to pay said invoice I request an opinion as to whether or not the above can be paia. I have enclosed a copy of the invoice, work order, and purchase order for your information. I I This office has consistently ruled that a vendor may be paid pursuant to ite legal theory of quantum meruit even though the contract pursuant to which the work was done is in violation of the competitive bid law. Also, see State v. Fourth National Bank of Columbus, Georgia, 270 Ala. 135, 117 So. 2d 145(1959), where it was held that if the power to contract lies within the competence of the city or county, and there has been an irregular exercise of that power, recovery may be had although the express contract is void. It is my opinion, based on the facts outlined in your request letter, that the City of Demopolis may pay for the repair of the city owned backhoe. This opinion is based upon the assumption that $6,943.50 fairly represents the cost of the work done by the vendor and that there was no fraudulent attempt by the vendor or the City of Demopolis to circumvent the competitive bid law. Under no circumstances should the legal theory of quantum meruit consciously be used as a tool to avoid compliance with the competitive bid law, as that would constitute a violation of a criminal statute. If I may be of any further assistance to you regarding this matter, please do not hesitate to contact me. Very truly yours, CHARLES A. GRADDICK Attorney General By PaLR0-e PATRICK L. ROBVSON Assistant Attorney General PLR/dc