ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Monday, January 22, 2007

Losing Bidder Seeks Pre-Contract Reliance Damages

Aaa_62 A railroad repair company is suing the Hancock County (Miss.) Port and Harbor Commission for money that it spent getting ready to perform an expected contract that went to another bidder.

Jackson Track Construction, Inc., says it had been led to believe it was going to get a $7,6 million contract to do repair work to some rail facilities, a contract delayed by Hurricane Katrina.  Jackson says it had been the only bidder and had been twice promised that it would receive a "notice to proceed."  The lawsuit claims the contract went "at the last minute" to another bidder.  Jackson is claiming more than $2 million, including both lost profits and the money it expended while expecting to get the "notice to proceed."

[Frank Snyder]

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