Strategic Concepts, LLC v. Beverly Hills Unified School DistrictAnnotate this Case
Government Code 1090, which prohibits conflicts of interest in the making of public contracts, applies to independent contractors. The Court of Appeal reversed the trial court's judgment for an LLC in an action alleging that the district breached a contract with the LLC. The district cross-complained to recover money paid under the alleged void contracts. The jury awarded millions in damages to the LLC. The court held that the trial court misinterpreted section 1090 when it instructed the jury that the LLC's contracts did not violate section 1090 on the theory that the statute did not apply to independent contractors, and erred in not instructing on the competitive bidding statutes.