February 27, 2015
Here Comes the Tort?
By John Parnass
“May the second-place bidder on a public works contract state a cause of action for intentional interference with prospective economic advantage against the winning bidder if the winner was only able to obtain lowest bidder status by illegally paying its workers less than the prevailing wage?”
Yes, according to this California case handed down February 20 (Roy Allan Slurry v. American Asphalt).
In Washington, the disappointed bidder’s normal remedy is to sue the owner to enjoin execution of the contract. We aren’t aware of any Washington cases in which the disappointed bidder sued the winning bidder for damages, as happened in this California case.