Question
Please help me understand this case. What are the issues, analysis, and conclusion for this case. Martel Building Ltd. v. Canada , a 2000 decision
Please help me understand this case. What are the issues, analysis, and conclusion for this case.
Martel Building Ltd. v. Canada, a 2000 decision of the Supreme Court of Canada.
The Scene
An owner had leased a building in Ottawa to the federal government. The lease was coming due and the parties entered into a form of negotiation for the renewal. They could not come to an agreement and the feds opened up the matter to tender. The owner submitted a tender, along with other prospective landlords, and was the low bidder. However, after the feds included fit-up costs to all of the tenders, the owner was considerably higher than the second low bidder, whose tender the feds accepted.
The owner alleged that the feds should be liable for its economic losses because:
1. The feds owed the owner a duty not to harm it in the pre-contractual negotiations and were negligent in the manner in which they conducted the negotiations. Note that there were no allegations of negligent misrepresentation;
2. The feds assessed the tenders unfairly and, although the standard tender clause was inserted, were therefore liable for both breach of contract A and for negligence; and
3. The feds drafted the tender documents negligently and ought to have considered the prior negotiations and circumstances with the owner when they drafted the tender documents.
Contract A is construction law lingo for the contract that is reached when a tender is submitted in response to a call for tenders. The terms of the contract are, in essence, to fairly review the tenders and, if the owner accepts the tender, to enter into the construction contract (i.e. contract B).
The owner was unsuccessful at trial but was successful in the Federal Court of Appeal.
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