Supreme Court of California

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Roy Allan Slurry Seal, Inc. v. American Asphalt South, Inc., 225398

In a government contracts dispute alleging the tort of intentional interference with prospective economic advantage, the Court of Appeals judgment overturning the trial court's judgment sustaining defendants demurrer, is reversed where plaintiffs' allegations -- that they had submitted the second lowest bids on several contracts awarded to defendant, and that their bids would have been accepted but for defendant's wrongful conduct during the bidding process -- are insufficient because: 1) public works contracts are a unique species of commercial dealings; 2) in the contracts at issue here, the public entities retained broad discretion to reject all bids; 3) the bids were sealed, and there were no postsubmission negotiations; 4) in awarding the contracts, the public entities could give no preference to any bidder based on past dealings, and were required to accept the lowest responsible bid; and 5) in these highly regulated circumstances, plaintiffs had 'at most a hope for an economic relationship and a desire for future benefit.' Blank v. Kirwan (1985) 39 Cal.3d 311, 331.

Appellate Information

  • Decided
  • Published 2017/02/16

Judges

  • CORRIGAN

Court

  • Supreme Court of California

Counsel