MTA
Wilson v. Los Angeles County Metropolitan Transportation Authority
Opinion
Opinion
Brown, J.
We consider in this case whether the lowest responsible bidder that is wrongfully denied a public contract has a cause of action for monetary damages against the public entity, and if so, whether those damages include bid preparation costs and lost profits. We conclude bid preparation costs but not lost profits are available under a theory of promissory estoppel. We therefore reverse the judgment of the Court of Appeal.
I. Factual and Procedural Background
In April 1994, the Los Angeles Metropolitan Transportation Authority (MTA) solicited bids to build the Red Line Hollywood/Highland station and tunnels. The lowest bid was from Tutor-Saliba-Perini (Tutor-Saliba), but plaintiff Kajima/Ray Wilson (Kajima) successfully protested Tutor-Saliba receiving the award because Tutor-Saliba had not attained MTA’s goal regarding use of Disadvantaged Business Enterprises (DBE). Ultimately, none of the submitted bids were deemed responsive, and MTA exercised its right to reject all bids. (Pub. Util. Code, § 130232, subd. (a) [“The commission, at its discretion, may reject any and all bids and readvertise.”].) Tutor-Saliba filed suit challenging this action.