International Brotherhood of Teamsters v. City of Monterey Park

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Petitioners sought a writ of mandate and declaratory relief, alleging that the City of Monterey Park breached its duty under Labor Code section 1072 to award a 10-percent bidding preference only to contractors who declare in their bids they will retain existing employees for at least 90 days. The trial court held that there was no such duty and ruled in favor of the City. The Court of Appeal held that words "shall declare as part of the bid" in Labor Code section 1072, subdivision (a), mean the bidder must state in its bid whether it will retain the employees of the prior contractor for 90 days. If the public agency (or "awarding authority") gives the statutory preference to bidders who do not agree in their bids to retain the employees of the prior contractor for at least 90 days, a bidder who makes the commitment is not really getting a statutory preference. The court held that whether a variance is inconsequential is a question of fact, subject to review for substantial evidence, that is not properly decided on demurrer. Therefore, the court reversed and remanded with directions for the trial court to vacate its order sustaining the demurrer without leave to amend and to enter a new order overruling the demurrer. View "International Brotherhood of Teamsters v. City of Monterey Park" on Justia Law