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HomeGovernment CodeDiv. 5Ch. 11§ 4553 Contract Overcharge Recovery Rights

§ 4553 Contract Overcharge Recovery Rights

Government Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 4553 Contract Overcharge Recovery Rights

Key Takeaways

  • •If a company helps the government get money back from a bad deal, the company can ask to be paid back for their legal costs.
  • •The company can also get extra money if they were overcharged, but they have to pay the costs to get that money back.
  • •This rule must be written clearly in all government contracts so everyone knows about it.

Example

A company helps the city sue a supplier for charging too much for school buses.

The company can ask the city to pay back their lawyer fees. If they win and get extra money because the supplier overcharged, the company can get some of that money too, but they have to pay the costs to get it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 4553 Contract Overcharge Recovery Rights

If an awarding body or public purchasing body receives, either through judgment or settlement, a monetary recovery for a cause of action assigned under this chapter, the assignor shall be entitled to receive reimbursement for actual legal costs incurred and may, upon demand, recover from the public body any portion of the recovery, including treble damages, attributable to overcharges that were paid by the assignor but were not paid by the public body as part of the bid price, less the expenses incurred in obtaining that portion of the recovery. In state contracts, the preceding provisions of this section shall be included in full in any specifications for the public purchase and shall be included in full in the bid agreement or general provisions incorporated into the bid agreement. (Amended by Stats. 1984, Ch. 740, Sec. 1.)

Last verified: January 22, 2026

Key Terms

agreementjudgmentnetcontractportdamagessettlementreimbursement

Related Statutes

  • § 68513 Civil Case Data Reporting
  • § 63049 Escrow Agreement Definitions
  • § 825 Public Employee Legal Defense
  • § 26103 County Music Promotion Funds
  • § 27584 Survey Monument Preservation Fund

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Government Code. Section 4553.
View Official Source