>LOS ANGELES
UNIFIED SCHOOL DISTRICT > v. GREAT
AMERICAN INSURANCE COMPANY





















Filed 7/12/10













IN THE SUPREME
COURT OF CALIFORNIA







LOS ANGELES UNIFIED SCHOOL )

DISTRICT, )

)

Plaintiff,
Cross-defendant )

and
Respondent, )

) S165113

v. )

) Ct.App. 2/2 B189133

GREAT AMERICAN INSURANCE )

COMPANY, )

) Los
Angeles County

Defendant and Appellant; ) Super.
Ct. No. BC247848

)

HAYWARD
CONSTRUCTION )

COMPANY, )

)

Defendant, Cross- )

complainant
and Appellant. )











STORY CONTINUE FROM
PART I….







In sum,
established law provides public entities substantial protection against
careless bidding practices by contractors and forecloses the possibility that a
public entity will be held liable when a contractor's own lack of diligence
prevented it from fully appreciating the costs of performance. This being so, protection against careless
bidding practices does not require that we allow contractors damaged by a
public entity's misleading nondisclosure to recover only on a showing the
public entity harbored a fraudulent intent.
We therefore disagree with the reasoning in Jasper Construction, Inc. v. Foothill Junior College Dist., > supra, 91 Cal.App.3d at page 10, that a showing of active
misrepresentation or fraudulent concealment is needed to prevent burdening
â€