Todd Heller, Inc. v. Indiana Department of Transportation
In early 2001 Indiana Department of Transportation (INDOT) entered into a Quantity Purchase Award agreement with Heller, Inc. Heller, Inc. is a Pennsylvania corporation. The agreement was for Heller to manufacture and distribute glass beads to INDOT’s various districts throughout the state of Indiana. (Glass beads are tiny spheres, which are mixed into traffic paint to create a reflective property.) This agreement was for the dates March 1, 2001 – February 28, 2002. INDOT’s solicitation to bidders was, all bidders are required to be familiar with testing glass beads to the ASHTO M 247 standard. The glass beads were to have moisture resistant and adhesion coating(s) and be in accordance …show more content…
began work; they tested the beads according to the AASHTO moisture resistance test. All of Heller Inc.'s glass beads passed the AASHTO moisture resistance test before being delivered to INDOT. Heller uses a method which Heller considers customary practice in the industry. Shortly after work began INDOT started rejecting some of the deliveries because they(INDOT) claim when they tested the beads they failed so they did not meet the AASHTO requirements, Heller tested the rejected beads a second time, again the beads passed Heller, Inc. testing. Heller arranged a meeting with INDOT officials to discuss the issue. Apparently they test samples in a different way which is why they were rejected. (Heller tilts the breaker before pouring the water in and INDOT does not they dump water in.) Heller also presented a video of how to properly test these glass beads. On May 25, 2001, INDOT voided the QPA agreement with Heller Inc. due to the repeated failure of the beads to pass the AASHTO test. Heller, Inc. files a complaint.
Heller, Inc. filed a complaint against INDOT for breach of contract. The trial court found that the contract does not require INDOT to adopt Penn Dot’s methods; the court also concluded that there is no custom or usage of trade in the glass bead
In early 2001 Indiana Department of Transportation (INDOT) entered into a Quantity Purchase Award agreement with Heller, Inc. Heller, Inc. is a Pennsylvania corporation. The agreement was for Heller to manufacture and distribute glass beads to INDOT’s various districts throughout the state of Indiana. (Glass beads are tiny spheres, which are mixed into traffic paint to create a reflective property.) This agreement was for the dates March 1, 2001 – February 28, 2002. INDOT’s solicitation to bidders was, all bidders are required to be familiar with testing glass beads to the ASHTO M 247 standard. The glass beads were to have moisture resistant and adhesion coating(s) and be in accordance …show more content…
began work; they tested the beads according to the AASHTO moisture resistance test. All of Heller Inc.'s glass beads passed the AASHTO moisture resistance test before being delivered to INDOT. Heller uses a method which Heller considers customary practice in the industry. Shortly after work began INDOT started rejecting some of the deliveries because they(INDOT) claim when they tested the beads they failed so they did not meet the AASHTO requirements, Heller tested the rejected beads a second time, again the beads passed Heller, Inc. testing. Heller arranged a meeting with INDOT officials to discuss the issue. Apparently they test samples in a different way which is why they were rejected. (Heller tilts the breaker before pouring the water in and INDOT does not they dump water in.) Heller also presented a video of how to properly test these glass beads. On May 25, 2001, INDOT voided the QPA agreement with Heller Inc. due to the repeated failure of the beads to pass the AASHTO test. Heller, Inc. files a complaint.
Heller, Inc. filed a complaint against INDOT for breach of contract. The trial court found that the contract does not require INDOT to adopt Penn Dot’s methods; the court also concluded that there is no custom or usage of trade in the glass bead