Los Angeles Unified School District v. Great American Insurance Company

Los Angeles Unified School District v. Great American Insurance Company
49 Cal. 4th 739 (July 12, 2010)

On July 12, 2010, the California Supreme Court filed a ruling significant to public entities entering into contracts for public works projects. In Los Angeles Unified School District v. Great American Insurance Company, the Court held that a public entity “may be required to provide extra compensation if it knew, but failed to disclose, material facts that would affect the contractor’s bid or performance,” even when the failure to disclose information was not fraudulent. Articulating a test modeled after the federal courts’ superior knowledge doctrine, the high court articulated four conditions that must be met for such liability to attach.Continue Reading California Supreme Court Holds Public Entity May Be Liable to Contractor for Nondisclosure of Material Information Under Superior Knowledge Doctrine – Proof of Affirmative Concealment or Intentional Misrepresentation Not Required