Celious v. City of Los Angeles CA2/8
CourtCalifornia Court of Appeal
Date FiledNovember 5, 2026
DocketB338624
StatusUnpublished
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Full Opinion
Filed 11/5/26 Celious v. City of Los Angeles CA2/8
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IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION EIGHT
AARON CELIOUS, B338624
Plaintiff and Appellant, (Los Angeles County
Super. Ct. No. 22SMCV00915)
v.
CITY OF LOS ANGELES et al.,
Defendants and Respondents.
APPEAL from a judgment of the Superior Court of
Los Angeles County. Edward B. Moreton, Jr., Judge. Affirmed.
Aaron Celious, in pro. per., for Plaintiff and Appellant.
Hydee Feldstein Soto, City Attorney, Denise C. Mills, Chief
Deputy City Attorney, Kathleen A. Kenealy, Chief Assistant City
Attorney, Shaun Dabby Jacobs, Assistant City Attorney, and
Merete Rietveld, Deputy City Attorney, for Defendants and
Appellants.
_________________________________
INTRODUCTION
Plaintiff Aaron Celious appeals from the judgment of
dismissal entered after the trial court sustained without leave to
amend the demurrer to Celious’s second amended complaint filed
by defendants City of Los Angeles (City) and Andrew Westall,
Holly Wolcott, Capri Maddox, and Joey Garcia.1 Celious’s claims
arise out of the City’s solicitation of public contracts for two
projects funded by the City. Celious is an independent contractor
for a company that submitted unsuccessful bids for those
projects. He contends that the trial court erred in finding the
City and the individual City defendants cannot be held liable for
common law torts, violations of the Unfair Competition Law
(UCL) (Bus. & Prof. Code, § 17200 et seq.), and federal due
process violations for their roles in allegedly misawarding the
contracts to companies other than the one for which Celious
works as an independent contractor. Celious also argues that the
trial court abused its discretion by denying him leave to amend
his complaint. We affirm.
BACKGROUND
1. The public contracts
Maroon Society Inc. (Maroon Society) provides “data
compilation, analysis, planning, and strategic consulting services
for government agencies to improve program administration, and
policy development.” Almost all of Maroon Society’s revenue
comes from government contracts procured through competitive
bidding procedures.
1 We collectively refer to Westall, Walcott, Maddox, and
Garcia as the “individual City defendants.”
2
Celious is one of Maroon Society’s independent contractors.
He “holds a Commission Agreement with Maroon Society to
prepare bids, proposals, and all tasks related to procuring new
contracts” for the company. Maroon Society pays Celious a
commission of 25% of the total value of contracts that are
awarded to the company.
In July 2021, the City issued a request for proposals (RFP)
for “professional assistance to provide the [Los Angeles Unified
School District (LAUSD)] Redistricting Commission with
assistance in its outreach efforts” (LAUSD Project). The RFP for
the LAUSD Project stated that it was “seeking proposals from
qualified firms with extensive experience in ethnic and small
market outreach, outreach strategy/messaging, and outreach to
residents who are not civically engaged throughout the School
District.” The RFP required anyone who submitted a proposal for
the LAUSD Project to accept several terms and conditions,
including one stating that “[a]ll costs incurred in responding to
this RFP shall be borne by the proposer. The City shall not, in
any event, be liable for any pre-contractual expenses incurred by
the proposer in the preparation and/or submission of its
proposal.”
In October 2021, the City issued an RFP seeking “a
qualified consultant to provide strategic planning services” to the
City’s Civil, Human Rights and Equity Department (CHRED
Project). The RFP required anyone who submitted a proposal for
the CHRED Project to accept several terms and conditions,
including one that states “[e]ach proposal prepared in response to
this RFP shall be prepared at the sole cost and expense of the
Proposer and with the expressed understanding that no claims
against the City for reimbursement will be accepted.”
3
The City awarded a public contract for the LAUSD Project
to North Star Alliances LLC (North Star), and a public contract
for the CHRED Project to Star Insights, LLC (Star Insights).
Maroon Society submitted unsuccessful bids for both projects.
Celious filed timely protests to the City’s award of contracts to
North Star and Star Insights. The City denied the protests
without hearings.
2. Celious’s government claims
In January 2022, Celious filed two government claims with
the City, challenging its decisions to award public contracts to
North Star for the LAUSD Project and Star Insights for the
CHRED Project. For the claim challenging the CHRED Project
award, Celious listed himself as the claimant, and for the claim
challenging the LAUSD Project award, Celious listed “Mr. Aaron
Celious Maroon Socie [sic]” as the claimant.
Celious asserted that City employees and officials
responsible for reviewing bids for the two projects published
sham RFP’s, failed to follow the review procedures set forth in
the published RFP’s, and blocked the release of public records
“via a lawful FOI request.” Celious asserted that City officials
knew the RFP’s contained false statements, that he justifiably
relied on the false statements published in the RFP’s, and that
those false statements proximately caused him to suffer damages.
With respect to the LAUSD Project claim, Celious sought
$60,000 in damages, consisting of $20,000 in costs associated
with preparing a bid in response to the RFP, plus $60,000 as
punitive damages. With respect to the CHRED Project claim,
Celious sought $60,000, consisting of $15,000 in costs associated
with preparing a bid in response to the RFP, plus $45,000 as
punitive damages.
4
The City denied Celious’s government claims.
3. Celious’s lawsuit
In September 2023, Celious filed the operative second
amended complaint against: (1) the City; (2) Westall, an
independent contractor for the City and the executive director of
the LAUSD Redistricting Commission; and (3) Wolcott, Maddox,
and Garcia, the employees of the City. Celious also named
Ernesto Morales, an executive at North Star, and Robin Engel,
an executive at Star Insights, as defendants. Celious alleged that
he was suing in his individual capacity and as an assignee of
Maroon Society’s claims against the defendants.
Celious asserted the following causes of action: (1) fraud
against Westall, Wolcott, Maddox, and Garcia for their conduct in
the process of awarding contracts for the LAUSD and CHRED
projects to companies other than Maroon Society; (2) negligence
against all the City defendants; (3) due process violations under
title 42 United States Code section 1983 against the City and the
individual City defendants; (4) intentional interference with
prospective economic relations against the individual City
defendants; (5) negligent interference with prospective economic
relations against the individual City defendants; and (6) violation
of the Unfair Competition Law (UCL) (Bus. & Prof. Code, § 17200
et seq.) against the individual City defendants.
The gravamen of Celious’s claims “centers on the fact that
two companies—North Star and Star Insights—were awarded
contracts in response to the LAUSD RFP and CHRED RFP,
respectively, even though the companies failed to (a) complete the
bidding requirements specified in the RFPs in order to be
responsive, and (b) misrepresented their qualifications to gain an
unfair advantage over the Plaintiff.” According to Celious, the
5
individual City defendants were motivated by corruption when
they misawarded the contracts for the LAUSD and CHRED
projects to North Star and Star Insights. Celious alleged that
those defendants “fraudulently represented to [Celious], and
other bidders[,] that the City would follow specific guidelines for
evaluating bids,” “failed to evaluate bids based on criteria in the
RFPs—as it was never the intention of defendants to conduct an
honest and lawful procurement process,” and “covered up the
extent of their corruption by refusing [Celious’s] freedom of
information act … request to disclose the individuals that
supposedly ‘evaluated’ bids on the two RFPs.”
The trial court sustained without leave to amend the City
and the individual City defendants’ demurrer to Celious’s second
amended complaint. The court found that Celious could not state
any state law claims against the individual City defendants
because they are immune from liability for their conduct in
reviewing bids for public contracts under Government Code
sections 820.2 and 822.2. The court also found that Celious’s
negligence claim fails because the City is immune from liability
for common law negligence, and Celious failed to plead any
statutory basis for holding the City liable for its decision to award
public contracts to companies other than Maroon Society.
Finally, the court found that Celious could not state a claim for
federal due process violations under title 42 United States Code
section 1983 because he failed to allege the violation of any
protected liberty or property interests arising out of the City’s
and the individual City defendants’ conduct.
6
The trial court entered judgment dismissing all of Celious’s
claims against the City and the individual City defendants.
Celious appeals.2
DISCUSSION
1. Standard of review
We independently review a trial court’s order sustaining a
demurrer to determine whether the operative complaint alleges
facts sufficient to state a cause of action. (Ivanoff v. Bank of
America, N.A. (2017) 9 Cal.App.5th 719, 725.) We assume the
truth of all properly pled factual allegations and matters that are
judicially noticeable, and we liberally construe the complaint’s
allegations with a view toward substantial justice. (Ibid.;
Quelimane Co. v. Stewart Title Guaranty Co. (1998) 19 Cal.4th
26, 43, fn. 7.)
If the trial court sustained the demurrer without leave to
amend, we must decide whether there is a reasonable possibility
that the plaintiff can amend his complaint to cure the defect.
(Blank v. Kirwan (1985) 39 Cal.3d 311, 318.) If the defect can be
cured, the trial court has abused its discretion, and we reverse.
(Ibid.) If the defect cannot be cured, the trial court has not
2 While this appeal was pending, Celious filed a motion to
augment the appellate record with a copy of a contract between
the City and a private company, through which the entities
agreed that Westall would serve as the executive director of the
LAUSD Redistricting Commission. We deny Celious’s motion.
As he acknowledges in his supporting declaration, the contract
was never introduced below and, as a result, is not a part of the
trial court’s record. (See Gaylord v. Municipal Court (1987)
196 Cal.App.3d 1348 [appellate court’s review of ruling on
demurrer is limited to record before the trial court].)
7
abused its discretion, and we affirm. (Ibid.) “The burden of
proving such reasonable possibility is squarely on the plaintiff.”
(Ibid.) Such a showing can be made for the first time on appeal.
(Smith v. State Farm Mutual Automobile Ins. Co. (2001)
93 Cal.App.4th 700, 711.)
2. Celious failed to state a claim for negligence against
the City
In his second cause of action, Celious asserted that the City
was negligent in how it administered the “procurement process
for the LAUSD RFP and the CHRED RFP,” and that he was
harmed by that negligence when the City awarded contracts for
those projects to companies other than Maroon Society. The trial
court found that Celious failed to state a claim for negligence
because the City is generally immune from liability for common
law torts, and Celious did not plead any statutory basis for
liability. We agree that Celious failed to state a claim for
negligence against the City.
In California, public entities cannot be held “liable for an
injury, whether such injury arises out of an act or omission of the
public entity or a public employee or any other person,” unless
liability is imposed by statute. (Gov. Code, § 815.) Government
Code section 815 abolishes all common law or judicially declared
forms of liability for public entities, except for such liability as
may be required by statute or the state or federal constitution.
(San Mateo Union High School Dist. v. County of San Mateo
(2013) 213 Cal.App.4th 418, 427 (San Mateo Union High School
Dist.).) Thus, a public entity, like the City, cannot be held
directly liable for its own negligence, unless a statute provides
otherwise. (Patterson v. Sacramento City Unified School Dist.
(2007) 155 Cal.App.4th 821, 829.)
8
Celious argues that the City can be sued for negligence
under Government Code section 815.6, which provides, “Where a
public entity is under a mandatory duty imposed by an
enactment that is designed to protect against the risk of a
particular kind of injury, the public entity is liable for an injury
of that kind proximately caused by its failure to discharge the
duty unless the public entity establishes that it exercised
reasonable diligence to discharge the duty.” Specifically, Celious
argues that the City can be held liable for violating mandatory
duties imposed by two of its local ordinances that govern its
review of competitive bids for public contracts.
First, Celious claims that under section 10.15 of the
Los Angeles Administrative Code (L.A. Admin. Code, art. 2,
§ 10.15) (Section 10.15), the City is obligated to fairly evaluate
public contract bids. Second, he claims that under section 10.40.2
of the Los Angeles Administrative Code (L.A. Admin. Code,
art. 14, § 10.40.2) (Section 10.40.2), the City is required to
properly verify bidder qualifications. According to Celious, both
ordinances impose mandatory, ministerial duties upon the City,
which it violated when it awarded contracts for the LAUSD and
CHRED projects to companies other than Maroon Society.
Before liability may be imposed against a public entity
under Government Code section 815.6, three requirements must
be met: (1) an enactment must impose a mandatory duty on the
public entity; (2) the enactment must be meant to protect against
the kind of risk of injury suffered by the plaintiff; and (3) breach
of the mandatory duty must be a proximate cause of the
plaintiff’s injury. (San Mateo Union High School Dist., supra,
213 Cal.App.4th at p. 428.) The first requirement “is that ‘the
enactment at issue be obligatory, rather than merely
9
discretionary or permissive, in its directions to the public entity;
it must require, rather than merely authorize or permit, that a
particular action be taken or not taken.’ ” (Ibid.) Whether an
enactment is intended to impose a mandatory duty, as opposed to
an obligation to perform a discretionary function, is a question of
law for the courts to decide. (Id. at pp. 428–429.)
As a threshold matter, Celious has not met his burden to
show that the trial court erred by failing to find that Section
10.15 imposes mandatory duties upon the City that would
support his claim for negligence. We presume an appealed
judgment is correct. (Hernandez v. First Student, Inc. (2019)
37 Cal.App.5th 270, 277 (Hernandez).) The appellant may not
“ ‘ “rest on the bare assertion of error but must present argument
and legal authority on each point raised.” ’ ” (Ibid.) “ ‘When an
appellant raises an issue “but fails to support it with reasoned
argument and citations to authority, we treat the point as
waived.” ’ ” (Ibid.)
Here, Celious fails to explain how Section 10.15 imposes
any mandatory duties on the City. That ordinance is complex. It
spans several pages, and it includes numerous subdivisions,
many of which include numerous subsections. The ordinance sets
forth various procedures for the solicitation, submission, and
review of competitive bids for public contracts. (See ibid.) Some
of the provisions govern the conduct of proposed contractors (see,
e.g., id., subd. (d)), while other provisions govern the City’s
conduct (see, e.g., id., subd. (c)). Although Celious states that the
ordinance “authorizes City officials to enter into contracts and
generally requires awards to the lowest responsible bidder,” he
does not point to any specific language in the ordinance, let alone
explain how any specific provision of the ordinance imposes a
10
mandatory duty on the City. Celious has, therefore, failed to
meet his burden on appeal to show that the City can be held
liable for failing to follow any duties or obligations imposed by
Section 10.15. (Hernandez, supra, 37 Cal.App.5th at p. 277.)
As for Section 10.40.2, we conclude that ordinance does not
impose any mandatory duties upon the City that would support a
claim for liability under Government Code section 815.6. As we
noted above, “the enactment at issue [must] be obligatory, rather
than merely discretionary or permissive, in its directions to the
public entity.” (Haggis v. City of Los Angeles (2000) 22 Cal.4th
490, 498.) That is, the enactment “must require, rather than
merely authorize or permit, that a particular action be taken or
not taken.” (Ibid.) In addition, it is not enough “that the public
entity or officer have been under an obligation to perform a
function if the function itself involves the exercise of discretion.”
(Ibid.) Accordingly, the use of the term “ ‘shall’ ” in an enactment
does not necessarily establish that the enactment imposes a
mandatory duty on a public entity. (San Mateo Union High
School Dist., supra, 213 Cal.App.4th at p. 429.) Rather, courts
focus on the particular action required by the enactment. (Ibid.)
An enactment creates a mandatory duty only where the
commanded action “ ‘did not lend itself to a normative or
qualitative debate over whether it was adequately fulfilled.’ ”
(Ibid.)
The portion of Section 10.40.2 that Celious relies on states:
“Prior to awarding a contract, the City shall make a
determination that the prospective contractor is one that has the
necessary quality, fitness and capacity to perform the work set
forth in the contract. Responsibility will be determined by each
awarding authority from reliable information concerning a
11
number of criteria, including but not limited to: management
expertise; technical qualifications; experience; organization,
material, equipment and facilities necessary to perform the work;
financial resources; satisfactory performance of other contracts;
satisfactory record of compliance with relevant laws and
regulations; and satisfactory record of business integrity.” (Id.,
subd. (a).)
As its language makes clear, Section 10.40.2 requires the
City to engage in a qualitative analysis. The ordinance identifies
a long, non-exhaustive list of criteria that the City should
consider when determining whether a prospective contractor is
qualified to perform the work necessary for the underlying public
contract. The portion of the ordinance that Celious discusses
does not mandate that the City weigh the identified criteria in a
particularly rigid manner. Indeed, some of the listed criteria—
like evaluating a bidder’s management expertise, technical
qualifications, and quality of performance of other contracts—
necessarily require the City to rely on its own “expertise and
judgment” to evaluate a bidder’s qualifications. (See San Mateo
Union High School Dist., supra, 213 Cal.App.4th at p. 430.)
In other words, the ordinance gives City officials discretion to
determine which prospective bidders are sufficiently qualified to
perform work under a given public contract. (Id. at p. 431.)
Accordingly, “[t]his is not a case in which the plaintiff seeks to
impose liability for clear breach of a mandatory ministerial or
regulatory directive that leaves no choice other than to execute
the enacted requirement.” (Id. at pp. 431–432.)
In short, Celious has not met his burden to show that the
City can be held liable under Government Code section 815.6
when it decided to award the LAUSD and CHRED contracts to
12
companies other than Maroon Society. Nor has Celious shown
that any other statute exposes the City to liability for such
conduct. The trial court, therefore, correctly found that
Government Code section 815 precludes Celious’s claim for
negligence against the City.
3. The individual City defendants are immune from
liability for state law claims
Against the individual City defendants, Celious asserted
causes of action for fraud, negligence, intentional interference
with prospective economic relations, negligent interference with
prospective economic relations, and violation of the UCL for their
roles in awarding contracts for the LAUSD and CHRED projects
to companies other than Maroon Society. The trial court found
that Celious cannot state any of these claims against the
individual City defendants because they are immune from
liability for their conduct in awarding public contracts. We agree
with the court’s ruling.
Under Government Code section 820.2, “a public employee
is not liable for an injury resulting from his act or omission where
the act or omission was the result of the exercise of the discretion
vested in him, whether or not such discretion be abused.” The
misaward of a public contract to one other than the lowest
responsible bidder is an abuse of discretion, which “comes within
the discretionary immunity to tort liability established by
[Government Code] sections 815, 815.2, subdivision (b), and
820.2.” (Swinerton & Walberg Co. v. City of Inglewood-L.A.
County Civic Center Authority (1974) 40 Cal.App.3d 98, 101.)
Thus, Government Code section 820.2 immunizes public
employees from liability for their conduct in reviewing bids for
public contracts, including any fraudulent or allegedly false
13
representations those employees make about their intent to fairly
evaluate such bids. (Curcini v. County of Alameda (2008)
164 Cal.App.4th 629, 648–649 (Curcini).)
Here, Celious’s state law claims are based on allegations
that the individual City defendants did not fairly evaluate bids
for the public contracts for the LAUSD and CHRED projects,
including failing to follow review standards set forth in the City’s
RFP’s for the projects, and awarded those contracts to two
companies that were not qualified to receive them. These
allegations fall squarely within Government Code section 820.2’s
immunity granted to public employees for their discretionary
actions in awarding public contracts. As the court in Curcini
explained, to immunize public employees for alleged abuses of
discretion in awarding public contracts, while allowing
disappointed bidders to sue those same employees for allegedly
making false promises to fairly or properly evaluate bids for those
contracts, “would eviscerate the immunity provided by
Government Code section 820.2 for the public employees’ exercise
of discretion.” (Curcini, supra, 164 Cal.App.4th at pp. 648–649.)
Celious contends that under Government Code section
822.2, he stated claims for fraud against the individual City
defendants arising out of their misrepresentations made during
the bid review process for the LAUSD and CHRED projects, such
as their promises to fairly evaluate contract proposals under the
criteria set forth in each project’s RFP. We disagree.
Under Government Code section 822.2, a public employee
“acting in the scope of his employment is not liable for an injury
caused by his misrepresentation, whether or not such
misrepresentation be negligent or intentional, unless he is guilty
of actual fraud, corruption or actual malice.” The statute’s
14
exception to immunity applies only where, in addition to the
elements of common law fraud, the plaintiff alleges facts showing
that the public employee was motivated by “ ‘ “corruption or
actual malice, i.e., a conscious intent to deceive, vex, annoy or
harm the injured party.” ’ ” (Curcini, supra, 164 Cal.App.4th at
p. 649, quoting Masters v. San Bernardino County Employees
Retirement Assn. (1995) 32 Cal.App.4th 30, 42.) Conclusory
allegations of corruption or malice are insufficient to fall within
Government Code section 822.2’s exception. (Curcini, at p. 649.)
Throughout his second amended complaint, Celious
asserted that several of the defendants engaged in conduct that
evinces their “corruption” and “malice,” but he only supported
those assertions with allegations that the defendants failed to
fairly evaluate proposals for the LAUSD and CHRED projects.
For instance, Celious claims that Westall and some City
employees were motivated by corruption because they:
(1) fraudulently represented to potential bidders that the City
would follow specific guidelines for evaluating bids, (2) failed to
evaluate bids based on criteria set forth in the RFP’s, and
(3) tried to hide their corruption by denying Celious’s “freedom of
information act” request. Celious makes similar allegations with
respect to Maddox and other City employees’ review of bids for
the CHRED project.
These allegations do not support findings of actual malice
or corruption against any of the individual City defendants.
Instead, these allegations, if true, simply show that despite
promising to do otherwise, the defendants failed to follow proper
guidelines when evaluating bids for the LAUSD and CHRED
projects. But, as we just explained, government employees are
immune from liability for their conduct in reviewing bids for
15
public contracts, including any fraudulent or false
representations they make about their intent to fairly evaluate
such bids. (Curcini, supra, 164 Cal.App.4th at pp. 648–649.)
Celious cannot circumvent this immunity through conclusory
allegations that the defendants were motivated by corruption or
malice when they evaluated the LAUSD and CHRED project
bids. (Id. at p. 649.)
Finally, Celious argues that the trial court erred in
dismissing any claims against Westall because he is an
independent contractor for the City and, as such, is not immune
from liability for his conduct in awarding contracts for the
LAUSD and CHRED projects. Celious forfeited this argument by
not raising it below.
To preserve an issue for appeal, an appellant generally
must raise it in the trial court. (Perez v. Grajales (2008)
169 Cal.App.4th 580, 591–592.) This rule applies in the
demurrer context. (See Thompson v. Ioane (2017) 11 Cal.App.5th
1180, 1192 (Thompson).) Accordingly, if an appellant does not
raise an argument opposing a demurrer in the trial court, he
forfeits that argument on appeal. (Ibid.)
Throughout their demurrer, defendants repeatedly argued
that Government Code sections 820.2 and 822.2 immunize the
individual City defendants, including Westall, for their conduct
in awarding the contracts for the LAUSD and CHRED projects to
companies other than Maroon Society. Celious, therefore, was
aware that defendants challenged his causes of action against
Westall on the ground that Westall, like the other defendants
who work for the City, is immune from liability for his role in the
public contract review process. Celious responded to these
arguments in his opposition to the demurrer, arguing that the
16
individual City defendants’ conduct, including Westall’s conduct,
fell outside the scope of these statutes. But Celious did not argue
that Westall lacks immunity based on his status as an
independent contractor for the City. In its order sustaining the
demurrer, the trial court found that all the individual City
defendants, including Westall, are immune from liability under
Government Code sections 820.2 and 822.2 for their conduct in
reviewing contract proposals for the LAUSD and CHRED
projects.
Celious now claims, for the first time on appeal, that the
court’s finding that Westall is immune from liability under
Government Code sections 820.2 and 822.2 was erroneous
because Westall is not entitled to immunity based on his status
as an independent contractor for the City. Celious forfeited this
argument by failing to raise it in his opposition to the City and
individual City defendants’ demurrer to his second amended
complaint. (Thompson, supra, 11 Cal.App.5th at p. 1192.)
4. Celious failed to state a claim for violation of his due
process rights under section 1983 of title 42 of the
United States Code
Celious also asserted a cause of action against the City and
individual City defendants for violation of his federal due process
rights under section 1983 of title 42 of the United States Code.
Specifically, Celious alleged that the defendants violated his
procedural due process rights by depriving him of “the pursuit of
his occupation without first providing him an opportunity to be
heard and confront the individuals who deemed [his] proposal as
non-responsible.” On appeal, Celious identifies what he claims
are two protected property interests that were infringed by the
City’s decision to award the contracts for the LAUSD and
17
CHRED projects to companies other than Maroon Society: (1) his
commission agreement with Maroon Society; and (2) procedural
entitlements to protest hearings guaranteed by the RFP’s for
each project. As we explain, the trial court properly found
Celious failed to state a claim for violation of his federal due
process rights.
To the extent Celious claimed that the City’s alleged
misaward of contracts for the LAUSD and CHRED projects to
companies other than Maroon Society and its failure to properly
consider his protests to those awards violated his due process
rights, such a claim does not exist. The right to bid on a public
contract is not a property right. (Golden Day Schools, Inc. v.
State Dept. of Educ. (2000) 83 Cal.App.4th 695, 704.)
Accordingly, “[a] prospective contractor has neither a liberty
interest nor a property interest in receiving a government
contract.” (Mednik v. State Dept. of Health Care Services (2009)
175 Cal.App.4th 631, 641 (Mednik).)
Celious likewise failed to allege that the City defendants
infringed any liberty interest he may have in being considered for
a government contract. “California law recognizes that a party
who has been dealing with the government on an ongoing basis
has a liberty interest in being considered for a contract.”
(Mednik, supra, 175 Cal.App.4th at p. 642.) Generally, this right
is implicated where an individual is barred from doing business
with the government. (Ibid.) While a temporary suspension from
doing business with the government generally does not implicate
this liberty interest, a more permanent suspension, including one
that lasts several years, can implicate this right. (Ibid.) Celious
did not allege that he or Maroon Society has been suspended from
doing business with the City or that the City has otherwise
18
prohibited him or Maroon Society from submitting bids for
government contracts in the future. Accordingly, Celious failed
to state a due process claim based on the deprivation of any
liberty interest in being considered for a government contract.
Celious’s due process claim also fails to the extent he
alleged that the City’s conduct deprived him of the pursuit of his
occupation. To establish a due process violation based on the
deprivation of a right to practice one’s profession, the plaintiff
must show that state action caused a complete deprivation of his
or her right to engage in a calling. (Dittman v. California (9th
Cir. 1999) 191 F.3d 1020, 1029, citing Conn v. Gabbert (1999)
526 U.S. 286, 292.) Celious did not allege that the City or the
individual City defendants engaged in any conduct that
completely deprived him of his right to engage in his chosen
profession.
In short, the trial court correctly found that Celious failed
to state a claim for violation of his due process rights under
section 1983 of title 42 of the United States Code.
5. The trial court did not abuse its discretion in
denying leave to amend the second amended
complaint
Celious next argues that the trial court abused its
discretion when it denied him leave to amend his second
amended complaint. We disagree.
First, Celious contends that the trial court should have
granted him leave to add a promissory estoppel cause of action
that is consistent with the holding in Kajima/Ray Wilson v. Los
Angeles County Metropolitan Transp. Authority (2000) 23 Cal.4th
305 (Kajima). There, our Supreme Court addressed when, if
ever, a disappointed bidder for a public contract may sue a public
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entity for monetary damages. The Court held that where a public
entity promises to award a public contract to the lowest
responsible bidder but ultimately awards the contract to an
entity that does not meet that requirement, the entity that was
actually the lowest responsible bidder may sue the public entity
to recover only the costs it incurred preparing its bid for the
public contract. (Id. at pp. 308, 315–321.) The Court observed
that in such a case, the disappointed bidder cannot bring a tort or
breach of contract cause of action against the public entity, but it
instead must rely on a promissory estoppel theory to recover its
bid preparation costs. (Id. at p. 315; see also id. at p. 315, fn. 2.)
The trial court found that Celious was precluded from
pursuing a promissory estoppel theory under Kajima because
when Maroon Society, the actual disappointed bidder in this case,
submitted proposals for the LAUSD and CHRED projects, it
agreed that the City could not be held liable for any costs
associated with preparing or submitting those proposals—i.e., the
only type of monetary damages available to a disappointed bidder
is under a promissory estoppel theory. (See Kajima, supra,
23 Cal.4th at p. 308.) Celious does not address this aspect of the
court’s holding or otherwise try to explain why he and Maroon
Society are not precluded from suing the City to recover bid
preparation costs under the express terms of the RFP’s for the
LAUSD and CHRED projects. Celious has, therefore, failed to
show the court abused its discretion when it denied him leave to
add a claim for promissory estoppel against the City.
Second, Celious argues that the trial court should have
granted him leave to allege more particularized facts for his
negligence cause of action. Celious claims that he can add
allegations “more precisely tying Defendants’ conduct to specific,
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mandatory statutory and ordinance-based procurement duties.”
Celious does not describe, however, what allegations he could add
to his complaint to achieve this goal. For instance, Celious does
not identify any enactments in addition to the ones we already
addressed above that would support a claim for liability against
the City under Government Code section 815.6. Celious has,
therefore, not shown the court abused its discretion when it
denied him leave to amend his negligence cause of action.
Third, Celious argues that the trial court should have
granted him leave to strengthen his allegations of “bad faith and
fraud based on defendants’ knowledge of falsified bid
credentials.” Celious also argues that he can add allegations
showing that Westall’s control over the bid review process strip
Westall of immunity for his conduct in reviewing contract
proposals for the LAUSD project. Again, Celious does not
describe what allegations he could add to cure the defects we
addressed above, including how he could allege particularized
facts that would support a finding that the defendants’ actions
were motivated by corruption or malice. (Curcini, supra,
164 Cal.App.4th at p. 649.)
In short, Celious has not shown the trial court abused its
discretion when it sustained the City defendants’ demurrer to his
second amended complaint without leave to amend.
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DISPOSITION
The judgment is affirmed. Respondents shall recover their
costs on appeal.
VIRAMONTES, J.
WE CONCUR:
STRATTON, P. J.
WILEY, J.
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