CASE SUMMARIES

Express and Implied Warranties

In Rhone Poulenc Rorer Pharmaceuticals, Inc v. Newman Glass Works, 112 F.3d 695 (3rd Cir. 1997), the court, construing Pennsylvania law, ruled that a subcontractor's express warranties prevailed over a contractor's implied warranty that glass specified for use in a subcontract was adequate for its proposed use. The general contractor, Turner Construction Company, expressly warranted to the owner that all work would be free from defects and the subcontractor assumed the warranty. In a suit over the costs to replace the glass, the subcontractor argued that the specified glass contained an implied warranty from Turner that it was adequate for use in the building. The court ruled, however, that the subcontractor assumed the express warranty and, therefore, assumed the risk that the glass would be defective.


Public Bidding

Since the last edition of the newsletter, the courts have addressed a number of bidding issues. In Hall Const. v. New Jersey Sports & Exposition Authority, 295 N.J.Super. 629 (App. Div. 1996), the Appellate Division ruled that the low bidder's failure to bid a landscaping alternate rendered the bid materially defective. The court reasoned that the failure to bid on an alternate creates an inequality because the bidder does not obligate itself to perform the work and avoids the risk to which other bidders, actual or potential, must commit themselves.

In two cases, the court considered the availability of bid information under the Right-to-Know Law. In one case, the court ruled that the identity of general contractors who have picked up bid documents need not be disclosed under the Right-to-Know Law. O'Neill Electric Co.,Inc. v. Warren County, 297 N.J.Super. 473 (App. Div. 1997). On the other hand, an unsuccessful bidder has the right to inspect a competitor's bid. Kuehne Chemical Co., Inc., v. North Jersey District Water Supply Commission, 300 N.J.Super. 433 (App. Div. 1997).

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