Bid Rejection for Misrepresentation Not an Implied Right

By Paul Emanuelli

In its June 2017 decision in The Rintoul Group Limited v. Far North District Council, the High Court of New Zealand awarded lost profits against a municipality after finding that it improperly rejected the plaintiff’s bid. The case dealt with multiple tender calls for the expansion of a national cycling trail. The low bidder was rejected for allegedly submitting inaccurate past project information regarding timely and on-budget performance. The court found that the tender call contained no express rules for such a disqualification and that there was no implied right to disqualify on that basis. It also found that no misrepresentations were made and awarded lost profits to the rejected bidder.