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Contracts Keyed to Calamari
White v. Berenda Mesa Water Dist.
Facts
The Defendant, Berenda Mesa Water Dist. (the "Defendant"), sought bids for a four entity construction project. Plaintiff 1, White ("Plaintiff 1"), was the low bidder on one segment of the project, a regulating reservoir. Plaintiff 1 filed a surety bond by Plaintiff 2, Aetna ("Plaintiff 2"), for $42,789. Plaintiff 1's bid was $427,890, much lower then the nearest bid of $494,320. Plaintiff 1 determined there was "an error of computation" in their bid, and requested in a writing to the Defendant, prior to the acceptance of its bid, that its bid be withdrawn and its deposit returned. After meeting with its attorney, the Defendant's board voted to accept Plaintiff 1's bid, despite the fact that Plaintiff 1 attempted to withdraw it. Plaintiff 1 then advised the board in writing that it rescinded its bid. The Defendant then accepted the next lowest bid, and kept Plaintiff 1's surety bond. Plaintiff 1 and Plaintiff 2 brought suit for rescission of the contract and return of the bid bond. The lower court found that Plaintiff 1 miscalculated the amount of hard rock that needed to be excavated. This was a material mistake and a mistake of judgment.
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