Holland & Knight Successfully Represents General Contractor in “Bid Shopping” Case Brought by Subcontractor

West Palm Beach, Fla. (April 25, 2012) – The Fourth District Court of Appeal reversed a lower court’s judgment against Holland & Knight client, West Construction, Inc. in a closely-watched case involving allegations of breach of contract and “bid shopping” by a general contractor.
 
In its bid to secure work for the Village of Royal Palm Beach, Florida Blacktop, an asphalt paving subcontractor, included a condition that stated: if West Construction (the general contractor) “in any way” used the figures contained within the bid, “such action(s) shall in all instances constitute acceptance” of the bid and “shall create a binding contract between the parties.”
 
When West Construction ultimately awarded the project to a competitor that offered a lower bid, Florida Blacktop sued for breach of contract and, in a July 2011 jury trial, won compensation for lost profits.
 
The case was one of First Impression in Florida and the American Subcontractors Association filed an amicus curiae brief asking the Court of Appeal to uphold the jury’s decision.
 
Holland & Knight partner Larry Klein handled the appeal on behalf of West Construction, successfully arguing that in order to have an enforceable contract, there must be an offer, an acceptance, consideration, and sufficient specification of terms.
 
The Court of Appeal agreed that the clause contained in Blacktop’s bid documents did not constitute an enforceable contract and reversed the judgment against the firm’s client.
 
Holland & Knight is a global law firm with approximately 1,000 lawyers in 18 U.S. offices as well as Abu Dhabi, Beijing and Mexico City. The firm is among the nation’s largest law firms, providing representation in litigation, business, real estate and governmental law. Interdisciplinary practice groups and industry-based teams provide clients with access to attorneys throughout the firm, regardless of location.