DISEASE CHARACTERISTICS:

• Histologically or cytologically confirmed cholangiocarcinoma or gallbladder carcinoma

  • Metastatic or surgically unresectable disease

• Measurable disease, defined as ≥ 1 lesion whose longest diameter can be accurately measured as ≥ 2.0 cm with conventional techniques or as > 1.0 cm with spiral CT scan

  • Spiral CT scan imaging must be used for pre- and post-treatment tumor measurements of lesions measuring ≥ 1.0 cm to < 2.0 cm
  • Clinical lesions will only be considered measurable when they are superficial (e.g., skin nodules, palpable lymph nodes)
  • Lesions on chest x-ray are acceptable as measurable lesions when they are clearly defined and surrounded by aerated lung.
• No ampulla of Vater tumors
• No evidence of CNS disease, including primary brain tumor or brain metastasis

PATIENT CHARACTERISTICS:

• Life expectancy ≥ 3 months
• ECOG performance status 0-2
• Absolute neutrophil count ≥ 1,500/mm³
• Platelet count ≥ 75,000/mm³
• Total bilirubin ≤ 2 times upper limit of normal (ULN)
• ALT and AST ≤ 2.5 times ULN
• Creatinine ≤ 2 mg/dL
• Albumin ≥ 2.5 g/dL
• Alkaline phosphatase ≤ 5 times ULN
• Urine protein:creatinine ratio < 1.0 OR 24-hour urine protein < 1000 mg

• No concurrent illness or medical condition, including any of the following:

  • Impairment of gastrointestinal (GI) function or disease that may significantly alter the absorption of erlotinib hydrochloride (i.e., ulcerative disease, uncontrolled nausea, vomiting, diarrhea, malabsorption syndrome, bowel obstruction, or inability to swallow the tablets)
  • Requirement for IV alimentation
  • Active peptic ulcer disease
  • Serious or nonhealing wound, ulcer, or bone fracture
  • GI bleed that required procedural intervention (e.g., variceal banding, surgical shunt, transvenous intrahepatic porto-systemic shunt) within the past 3 months
  • Abdominal fistula, GI perforation, or intra-abdominal abscess within the past 28 days
  • Ongoing or active infection
  • Symptomatic congestive heart failure
  • Psychiatric illness or social situation that would limit study compliance
• No other malignancy within the past 3 years except for adequately treated basal cell or squamous cell skin cancer or in situ cervical cancer, or stage I or II cancer currently in complete remission
• No known hypersensitivity to Chinese hamster ovary cell products or other recombinant human antibodies

• No abnormalities of the cornea based on any of the following:

  • History (e.g., dry eye syndrome, Sjögren's syndrome)
  • Congenital abnormality (e.g., Fuch's dystrophy)
  • Abnormal slit-lamp examination using a vital dye (e.g., fluorescein, Bengal-Rose),
  • Abnormal corneal sensitivity test (Schirmer test or similar tear production test)
• Not pregnant
• Negative pregnancy test
• No nursing during and for at least 6 months after completion of study treatment
• Fertile patients must use effective contraception during and for at least 6 months after completion of study treatment

• No clinically significant cardiovascular disease, including any of the following:

  • Cerebrovascular accident within the past 6 months
  • Uncontrolled hypertension
  • Myocardial infarction or unstable angina within the past 6 months
  • New York Heart Association class II-IV congestive heart failure
  • Serious cardiac arrhythmia requiring medication
  • Unstable angina pectoris
  • Peripheral vascular disease
• No significant traumatic injury within the past 28 days

PRIOR CONCURRENT THERAPY:

• No prior systemic anticancer therapy for metastatic gallbladder or bile duct cancer
• More than 4 weeks since prior chemotherapy or radiotherapy (6 weeks for nitrosoureas or mitomycin C) and recovered
• More than 28 days since prior major surgery*
• More than 2 weeks since prior minor surgery*
• More than 7 days since prior core biopsy
• No concurrent major surgery
• No other concurrent chemotherapy, immunotherapy, radiotherapy, or any other therapy or supportive care considered investigational
• No concurrent enzyme-inducing antiepileptic drugs (e.g., phenytoin, carbamazepine, phenobarbital) or any other CYP3A4 inducer, such as rifampin or Hypericum perforatum (St. John's wort)
• No concurrent combination antiretroviral therapy for HIV-positive patients
• No other concurrent investigational agents
• No other concurrent anticancer therapies
• No concurrent prophylactic hematopoietic colony-stimulating factors

• Concurrent full-dose anticoagulants (e.g., warfarin) allowed provided PT/INR is > 1.5 and both of the following criteria are met:

  • In-range INR on a stable dose of oral anticoagulant OR on a stable dose of low molecular weight heparin
  • No active bleeding or pathological condition that carries a high risk of bleeding (e.g., tumor involving major vessels, gastrointestinal ulcerations, or known varices) NOTE: *Insertion of a vascular access device is not considered major/minor surgery