COA affirms judgment in favor of contractor in bid dispute

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The Indiana Court of Appeals has found that a school corporation seeking bids for renovations did not acquire the right to enforce a construction company’s mistaken bid.

In East Porter County School Corp. v. Gough, Inc., and Travelers Casualty and Surety Co. of America, No. 64A04-1109-PL-471, East Porter County School Corp. sought bids for additions and renovations. Bids had to be in by 2 p.m. Feb. 5, 2008, and the bids would be opened publicly at 2 p.m. Gough Inc. submitted a bid to complete certain work with a base bid amount of $2,997,000.

Just before the bids went public, Gough realized its bid was based on mistaken information within the company and tried to have the bid pulled. The company didn’t reach anyone with the school corporation until after 2 p.m. Gough’s was the lowest bid, so the school accepted it and tried to force Gough to honor the bid. Eventually the school approved the project to the second-lowest bidder and then sought to claim the bid bond Travelers Casualty and Surety has on the Gough bid. Travelers denied the claim.

Gough filed a complaint for declaratory judgment seeking that its bid be rescinded and its bid bond released. The trial court ruled in favor of Gough, granting summary judgment for Gough and Travelers and against the school.

“Based upon the record and under the circumstances presented in this case, we conclude that it is evident that there was not a meeting of the minds regarding the bid amount and thus that the School did not acquire the right to enforce Gough’s erroneous or mistaken bid,” wrote Judge Elaine Brown.

The appellate court cited Bd. Of Sch. Commr’s of City of Indianapolis v. Bender, 36 Ind. Ap. 164, 72 N.E. 154 (1904), in its decision. The judges also agreed with the trial court that Travelers should be released from its bid bond because Gough didn’t have any liability on the underlying contract.



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  1. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  2. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

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  4. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  5. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...