Los Angeles Unified School District, Plaintiff, Cross-Defendant and Respondent v. Great American Insurance Company…

Summary

The court held that a public entity may be contractually liable for failing to disclose material information affecting a public-works contractor's costs, even without affirmative fraudulent intent. Recovery is limited to circumstances in which the contractor lacked material information, the entity possessed it and knew the contractor lacked access to it, the entity's disclosures failed to provide notice to inquire, and the entity failed to disclose the information. The court affirmed the reversal of judgment on the pleadings and remanded for further proceedings. Corrigan, J., dissenting, would have retained a requirement of affirmative misrepresentation or intentional concealment.