2. Damages
a. The general rule is that the actual lowest responsible
bidder is not entitled to damages when the contract is awarded to a
higher bidder. Telephone Associations, Inc. v. St. Louis
County Board, 364, N.W.2d 378 (Minn. 1985). The power of letting
contracts is for the benefit of the public and not of individual
bidders. An award to one other than the lowest responsible
bidder does not entitle the bidder to recover damages or lost
profits. McQuillin, Municipal Corporations, (3rd ed.) § 29.86.
b. Some recent cases have awarded unsuccessful bidders who have
been wrongly denied the contract, recovery of bid preparation costs
and expenses, including reasonable attorneys fees, from the time it
first intervened at the County Board to prevent the award of the
contract. Carl Bolander & Sons Co. v. City of Minneapolis,
451 N.W.2d 204 (Minn. 1990).
E. Effect of Void Contracts on Contractors who have Performed
1. A declaration of a contract as void does not necessarily
preclude a contractor who has performed from recovering monies.
2. A contractor may recover under quasi-contractual theory when:
a. the county receives money or property
b. pursuant to a contract
c. within the contracting powers of the county
d. and the contract is made in good faith
e. and is carried out without intent to violate or evade the law
f. but which contract is invalid for failure to follow statutory
requirements
g. AND IF the money or property is retained and devoted to
legitimate county purposes thereby resulting in a benefit to the
county. Kotschevar v. Township of North Fork, 39 N.W.2d
104 (Minn. 1949); Buffalo Bituminous, Inc. v. Maple Holl
Estate, Inc., 250 N.W. 2d 183 (Minn. 1977).
