Is PWGSC liable to a subcontractor for a breach of contract for mistakenly awarding a contract to a noncompliant bidder?

Canada (Federal), Canada

The following excerpt is from Design Services Ltd. v. Canada, 2005 FC 890 (CanLII):

The defendant submits that the plaintiff's claims are for pure economic loss. Subcontractors do not have claims in tort against an owner for breaches or non-enforcement of the terms of the contract between the owner and contractor. To hold an owner liable to subcontractors for mistakenly awarding a contract to a noncompliant bidder would result in indeterminate liability by opening the door to the claims of sub-sub-contractors, suppliers and their employees. The defendant submits that subcontractors do not need to have a right to a claim in tort against owners in the tendering process where they have the opportunity to submit their prices and offer their goods and services to all proponents. On the basis of the test reviewed and established in Cooper v. Hobart, 2001 SCC 79 (CanLII), [2001] 3 S.C.R. 537, there is no proximity between the plaintiffs and PWGSC upon which the court should extend the categories of economic loss to include the claims of the plaintiffs. This case is not such that a new category of duty of care should be established. ANALYSIS Was there a breach of contract as between the Plaintiffs and PWGSC?

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