The Firm represented a lease-leaseback contractor performing work for the Torrance Unified School District. A third party filed a lawsuit against the contractor and the District claiming the lease-leaseback agreements for two schools were illegal. Both Balfour Beatty and the District challenged the complaint by demurrer, seeking to dismiss the lawsuit in its entirety. The trial court dismissed the case.
The Second District Court of Appeal agreed with Balfour Beatty and the District, followed the plain language of Education Code Section 17406, and concluded competitive bidding was not required for a lease-leaseback contract at that time. In so doing, the court expressly rejected the contrary holding in Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261. This was an important decision protecting contractors who provided lease-leaseback services at the request of public entities.
A copy of the published decision can be viewed here.
(2016) 247 Cal.App.4th 235
Counsel: Jason R. Thornton and Louis J. Blum