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Powder Horn Constructors, Inc. v. City of Florence
Colorado Supreme Court
754 P.2d 356 (1988)
Facts
The City of Florence (defendant) announced it would award a construction contract to the lowest bidder. Powder Horn Constructors, Inc. (plaintiff) submitted the lowest bid. The city official who opened the bid reviewed it and alerted Powder Horn to the fact that it had omitted a costly item. If Powder Horn had avoided making a careless mistake and included the item, its bid would have been only the second lowest. Powder Horn rescinded its bid before the contract could be executed. The city awarded the contract to the next lowest bidder and sued Powder Horn for liquidated damages in the amount of Powder Horn’s performance bond. Both the trial court and the intermediate appellate court entered judgment for the city. Powder Horn appealed to the Colorado Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Kirshbaum, J.)
Dissent (Vollack, J.)
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