Right to compensation of an unlawfully excluded bidder and termination

Person in a suit tearing up a document titled “Contract”

On 24 April 2024 (no. 472038), the Conseil d’État ruled that the court must take into account the subsequent termination of the contract when calculating the loss of profit of an unlawfully excluded bidder. This decision, concerning a public service delegation for the operation of ski lifts by the municipality of La Chapelle d’Abondance, specifies that the termination of the contract initially signed affects the right to compensation. The excluded company, Chapelle d’Abondance Loisirs Développement (CALD), had obtained on appeal full compensation for its loss of profit. However, the Conseil d’État set aside that judgment for an error of law, stressing that the termination of the contract must be taken into account in assessing the certain loss suffered by the excluded bidder, depending on the grounds and effects of that termination. The case has been referred back to the Lyon Administrative Court of Appeal for re-examination.

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