Ritchie Paving, Inc. v. City of Deerfield

Summary

The Kansas Supreme Court considered whether an unsuccessful low bidder on a public works project could recover bid-preparation expenses under promissory estoppel. The court held that a responsible low bidder may recover costs incurred directly from preparing and submitting a bid when the public entity rejects the bid based on undisclosed requirements without reasonable justification. The court reversed and remanded for further proceedings.

Holdings

1. Under the circumstances presented, an unsuccessful responsible low bidder may recover bid-preparation costs from a public entity under promissory estoppel when the bidder reasonably relied on the entity's bidding documents, the entity rejected the bid based on undisclosed requirements without reasonable justification, and injunctive relief is unavailable or would not effectively address the claim.
2. Sutter Bros. does not bar a promissory-estoppel claim seeking bid-preparation expenses; it is distinguishable because it addressed lost-profit damages based on an alleged statutory violation, not reliance damages based on undisclosed bidding requirements.
3. The discretionary-function exception does not bar the claim because Ritchie Paving's cause of action is based on reasonable detrimental reliance on the City's promise rather than tort principles.

Questions Presented

1. Whether an unsuccessful low bidder on a public works project may state a promissory-estoppel claim against the public entity to recover bid-preparation expenses when the bid was rejected based on undisclosed requirements and no fraud or independent tort is alleged.
2. Whether Sutter Bros. Constr. Co. v. City of Leavenworth bars recovery of bid-preparation expenses by an unsuccessful bidder.
3. Whether the discretionary-function exception to the Kansas Tort Claims Act bars Ritchie Paving's claim.

Disposition

reversed_and_remanded