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James Petrozello Co. v. Township of Chatham

Decided: June 22, 1962.

JAMES PETROZELLO COMPANY, INC., ET AL., PLAINTIFFS-RESPONDENTS,
v.
TOWNSHIP OF CHATHAM, ETC., PETER ROSELLE & SONS CO., ET AL., DEFENDANTS-APPELLANTS



Conford, Gaulkin and Kilkenny. The opinion of the court was delivered by Kilkenny, J.A.D.

Kilkenny

Plaintiffs' action in the Superior Court, Law Division, to set aside the township's award of a garbage contract for five years to the defendant contractors resulted in a judgment setting aside the award, and defendants appealed.

The facts are not in dispute. On November 9, 1961 the Township of Chatham advertised for bids for the collection of garbage and other refuse from properties within the municipality, and for the disposal thereof outside the limits of the township for alternate periods of three, four and five years. The "Information for Bidders" called for a lump sum bid for the collection and disposal of the garbage and refuse from all structures in existence upon the commencement of the term of the contract, and also for a unit bid per month charge for each of several categories of structures erected in the future during the term of the contract. Prospective bidders were directed to make a careful examination

of the properties in the township from which the garbage and refuse would be collected, as well as the municipal zoning ordinance. Information was given as to the present land uses and the approximate number of existing buildings in each classification. The bidders were referred to the land use provisions in the zoning ordinance and were told that "under present zoning no more than 200 individual apartments [units in apartment houses] could be constructed." There was also furnished a guide for the projection of growth in single-family residences in the form of statistics as to the number of building permits issued for single-family residences in each year from 1956 down through August of 1961. Building permits of single-family residences had varied from a high of 87 in 1956 to a low of 31 in 1958 and in 1960; and through August of 1961, 40 such permits had been issued.

The respective bids of the plaintiff contractors and defendant contractors were as follows:

Petrozello Roselle

For existing properties -- $240,000.00 $245,000.00

5 years

Each residence constructed

during term of contract $2.65 per mo. $2.25 per mo.

Each neighborhood ...


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