White v. Berenda Mesa Water Dist.

7 Cal.App3d 894 (1970)

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Nature of the Case

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Facts

Berenda Mesa Water District (D invited bids on a construction project. White (P) was the low bidder ($427,890 vs. $494, 320). P's bid was based on unwarranted soil reports and statements of an engineer. P's bid was submitted on the assumption that no more than 7% of the soil to be excavated was hard rock. The hard rock actually composed 50% of the soil. P filed a surety bond for 10% of his bid. P discovered that he made an error in his bid, and before the acceptance of the bid, P informed D that he was withdrawing his bid. The mistake was explained to D, but they still accepted P's bid. P refused to perform, and D kept the performance bond and awarded the contract to the next lowest bidder. P sued to recover the bond. At trial, P alleged that he was guilty of simple negligence in failing to determine that the reports were not accurate and that because of this factual mistake the contract with D should be rescinded because D had suffered no damage. P appealed the judgment for D.