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Drennan v. Star Paving Co.

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Drennan v. Star Paving Company
Seal of the Supreme Court of California
Decided Dec 31, 1958
Full case nameWilliam A. Drennan, respondent, v. Star Paving Company (a Corporation), Appellant
Citation(s)51 Cal. 2d 409 (1958)
Case history
Prior historyDefendant appealed a judgment for plaintiff in a contracts action
Subsequent historynone
Holding
Judgment affirmed for plaintiff.
Court membership
Chief JusticePhil S. Gibson
Associate JusticesJohn W. Shenk, Roger J. Traynor, B. Rey Schauer, Homer R. Spence Marshall F. McComb
Case opinions
MajorityTraynor, joined by Shenk, Gibson, Schauer, Spence, McComb

Drennan v. Star Paving Company, 51 Cal. 2d 409 (1958), was a California Supreme Court case in which the court held that a party who has detrimentally relied on an offer that is revoked prior to acceptance may assert promissory estoppel to recover damages.[1]

Background

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William A. Drennan, a general contractor, had gotten a bid from Star Paving, a subcontractor for a construction job and had included Star Paving's bid number in his total bid. Drennan won the contract to build the Monte Vista Elementary School for the Lancaster School District based on that bid. Subsequently, Star Paving contacted him to say that its initial bid had been approximately $7000 short, and that it would not be able to complete the project for the amount of money it had previously specified. After finding an alternative subcontractor to complete the job, Drennan sued Star Paving for the difference between its bid and the cost.

Opinion of the Court

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Judge Roger J. Traynor, writing for the California Supreme Court, held that the plaintiff's reliance on defendant's bid, as well as defendant's failure to indicate that the bid was revocable before acceptance, meant that defendant was responsible for providing the service at the price initially specified.

Impact

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In contracts courses this case is often contrasted with James Baird Co. v. Gimbel Bros., a 1933 case with similar facts from the Second Circuit decided by Judge Learned Hand. Hand held that an offeror was free to revoke the offer prior to acceptance; twenty-five years later, when the doctrine of promissory estoppel had found wider acceptance, Traynor held that the offer was irrevocable once the offeree had relied upon it.[2]

References

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  1. ^ Drennan v. Star Paving Company., 51 Cal.2d 409, 417 (1928).
  2. ^ Goldberg, Victor P. (2011). "Traynor (Drennan) versus Hand (Baird): Much Ado About (Almost) Nothing" (PDF). Journal of Legal Analysis.[dead link]
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