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Contracts Keyed to Marshall
M.J. McGough Co. v. Jane Lamb Memorial Hospital
Citation:
302 F. Supp. 482 (1969)Facts
Feeling a serious mistake had been made in the compilation of his bid, Mr. McGough called his representative at the opening and instructed him to request that he be allowed to withdraw his bid. This request was transmitted to Mr. Depue at approximately 2:45 p.m. while the Board was still analyzing the bids received. Shortly thereafter Mr. McGough spoke with Mr. Depue by telephone and Mr. Depue requested a letter explaining the circumstances of the mistake and a written request to withdraw. Mr. McGough and his staff then began checking the papers relating to this bid and discovered an error in the amount of $199,800. The circumstances surrounding the error were set out in a letter dated February 16, 1968, directed to Milton Holmgrain, the hospital administrator. In the letter Mr. McGough offered to “submit to you immediately all of our records relating to this project for verification of this error.” In spite of this the Board of Trustees, without further communication with M. J. McGough Company, at its meeting on February 22, 1968, passed a “Resolution of Intent” to the effect that the Board intended to accept the bid of M. J. McGough Company.
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