Universal By-Products, Inc. v. City of Modesto

Opinion

FRANSON, J.

Appellant appeals from a judgment dismissing its amended complaint against respondent for damages allegedly arising out of a fraud, a breach of contract and a conspiracy. The trial court sustained a general demurrer to each cause of action. We affirm.

The basic issue is whether a municipality, having elected to submit to competitive bidding an exclusive contract for garbage collection within the city, 1 and having expressly reserved the right to reject all bids, incurs a liability by way of tort or breach of contract to the low bidder upon rejecting the bids. We hold that it…