Comment 33984

By Tammany (anonymous) | Posted September 21, 2009 at 16:33:37

Why would that open them up to a lawsuit? Did the council owe a duty to the consortium to give them $18m? No of course not. That's just not how the law works.

Here's a scenario to illustrate:

Let's say that I decide I want to build a shed on my property.

I tell my assistant to go out and solicit proposals from builders, and to submit to me a recommendation on which builder he thinks would be best for the job.

The assistant gives me the recommendation, but I don't like the builder (maybe I know they owe me money, or they have a lawsuit pending against me ;)). I decide I'm going to go with someone of my own choosing. Does the rejected builder have a claim against me? Almost definitely not.

I don't want to get in to the nitty gritty of this, but sometimes, yes, the person asking for the proposals can be held liable to the bidder. For instance, if I submit an RFP for a project, and bidder A tenders at $150 whilst bidder B submits at $160, and I still choose bidder B, then I might be accountable to bidder A for lost profits, etc. (e.g. if A and B's tenders were essentially identical except for price). But that's just not the case here.

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