Procedural Posture

Appellant refuse collector challenged a judgment of the Superior Court of Stanislaus County (California), which dismissed appellant’s amended complaint against respondent city for damages allegedly arising out of fraud, breach of contract, and conspiracy, for respondent’s failure to award appellant a license following the acceptance of bids for respondent’s refuse collection. The trial court sustained a general demurrer to each cause of action.

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Appellant refuse collector responded to a request for bids by respondent city for the granting of an exclusive license to provide garbage collection within respondent’s territory. Although appellant was the low bidder, respondent did not award appellant the license. Appellant filed a complaint against respondent, alleging that it sustained expenses due to respondent’s deceit in implying that the license would be awarded pursuant to the bidding. Appellant’s complaint sounded in breach of contract, fraud, and conspiracy. The trial court sustained respondent’s demurrers to each cause of action. Appellant sought review of the judgment. On appeal, the court affirmed the trial court’s judgment, finding that appellant submitted its bid with full knowledge that respondent reserved the right to reject all bids, and that such risk was a cost of seeking to do business with a governmental body.


The court affirmed the trial court’s dismissal of appellant refuse collector’s complaint, finding that respondent city incurred no liability by way of tort or breach of contract to the low bidder upon rejecting the bids, as respondent was not required under the law to bid the refuse collection contract in the first place.