New England Insulation Co. v. General Dynamics Corp.
Appeals Court of Massachusetts
522 N.E.2d 997 (1988)
General Dynamics Corporation (defendant) solicited bids to insulate natural gas tanks, representing that submitted bids would be kept locked and unopened until after the bid-closing date. New England Insulation Co. (plaintiff) submitted a bid, but before the closing date General Dynamics showed New England's bid to a competitor that was ultimately awarded the contract. New England sued for breach of implied contract and misrepresentation, arguing General Dynamics never intended to fairly consider any bid but New England's. The trial court dismissed the complaint, and New England appealed.
Whether a private-sector entity that solicits bids and represents that it will follow certain procedures in the bidding process must honor those self-imposed conditions or risk liability to the bidders.