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LUTZ APPELLATE PRINTERS v. COMMONWEALTH PENNSYLVANIA (03/16/77)

decided: March 16, 1977.

LUTZ APPELLATE PRINTERS, INC., APPELLANT,
v.
COMMONWEALTH OF PENNSYLVANIA, DEPARTMENT OF PROPERTY AND SUPPLIES, ET AL.



COUNSEL

Kates, Livesey & Edelstein, Lewis Kates, Philadelphia, for appellant.

Howard M. Snyder, Deputy Atty. Gen., for appellees, Milton J. Shapp, Governor, and Grace M. Sloan, State Treasurer.

Frank P. Lawley, Jr., Chief Counsel, Robert P. Meehan, Deputy Counsel, Harrisburg, for appellee, Robert P. Casey, Auditor-General.

John L. Sweezy, Harrisburg, for appellees, Comm., Dept. of Property & Supplies and Ronald G. Lench, Secretary.

Eagen, O'Brien, Roberts, Pomeroy, Nix and Manderino, JJ. Jones, former C. J., did not participate in the decision of this case.

Author: Roberts

[ 472 Pa. Page 31]

OPINION OF THE COURT

This is an appeal from a decree of the Commonwealth Court denying appellant's petition for a preliminary injunction.*fn1 Appellant, Lutz Appellate Printers, Inc. [Lutz], alleged that it was the lowest responsible bidder for a public printing contract and sought a preliminary injunction restraining the Pennsylvania Department of Property and Supplies [Department] and individual defendants named in their official capacities*fn2 from awarding the contract to anyone other than the lowest responsible bidder.

In August, 1975, the Department issued invitations and solicited bids for a contract for the printing of legal briefs and records. The bids were opened on September

[ 472 Pa. Page 323]

, 1975. Although Lutz' bid of $54,667.50 was the low bid, it was not accepted. Section 523 of the Administrative Code of 1929*fn3 prohibits the award of public contracts to bidders who use materials manufactured in states which require that work done in fulfillment of their public contracts use materials manufactured in their own states. Lutz conducts business in the Commonwealth, pursuant to a Certificate of Authority issued by the Secretary of State, and is a Pennsylvania taxpayer, but its manufacturing facilities are in New Jersey. The Department concluded that Lutz' manufacturing facilities were in a state which prohibits the award of public contracts against bidders using materials not produced in that state, and that therefore Lutz was not a qualified bidder.*fn4 The Department awarded the contract to the next lowest bidder.

On September 30, 1975, Lutz filed a complaint in the Commonwealth Court seeking declaratory and injunctive relief, and a petition for a preliminary injunction. A hearing on the petition for preliminary injunction was held on October 22, 1975, before ...


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