The Firm represented the second bidder in a procurement dispute concerning a $100 million HVAC improvement project at Ironwood State Prison. The Firm’s client challenged the low bidder and successfully obtained a writ of mandate (declaring the contract awarded to the low bidder illegal) and a permanent injunction (barring further work and forcing the job to stop).
The Firm also prosecuted a promissory estoppel claim for recovery of bid preparation costs resulting in a judgment after trial of nearly $300,000.00 in bid preparation costs, court costs, and interest. The California Department of Corrections & Rehabilitation appealed the promissory estoppel judgment.
In a precedent setting case, the appellate court unanimously affirmed the judgment holding the grant of a writ of mandate and injunction, not followed by an award of the contract to the challenging bidder, is ineffective relief entitling the challenging bidder to recover bid preparation costs.
(2018) 21 Cal.App.5th 453