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Huntington Beach School District v. Continental Information Systems Corp.

United States Court of Appeals for the Ninth Circuit
621 F.2d 353 (1980)


Facts

The Huntington Beach Union High School District (school) (plaintiff) issued a notice inviting bids for a new computer. The notice stated that the school had ordered peripheral equipment for the anticipated computer. Continental Information Systems Corp. (CIS) (defendant) submitted the winning bid, offering to provide the new computer by July 31. The second-place bid was $12,403.06 higher than CIS’s bid. The other bids remained open until mid-July, at which point CIS had not yet delivered the new computer. The school allowed the other bids to expire in mid-July. CIS failed to deliver the computer by July 31. The school opened another round of bids, with the winning bid in the second round $59,424.66 higher than the original CIS contract price. The school sued CIS. The district court found that the school had acted reasonably and in good faith, but limited the school’s damages to $12,403.06, finding that it would have been more reasonable for the school to accept the second-best offer before it expired. The district court also awarded the school damages to cover the cost of three months of renting peripheral equipment for the new computer, which was unusable because of CIS’s failure to deliver the computer.

Rule of Law

Issue

Holding and Reasoning (Choy, J.)

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