Elan Construction Ltd. v. South Fish Creek Recreational Association, (2015) 613 A.R. 140 (QB)

JudgeTilleman, J.
CourtCourt of Queen's Bench of Alberta (Canada)
Case DateMay 29, 2015
Citations(2015), 613 A.R. 140 (QB);2015 ABQB 330

Elan Constr. v. South Fish Creek (2015), 613 A.R. 140 (QB)

MLB headnote and full text

Temp. Cite: [2015] A.R. TBEd. JN.016

Elan Construction Ltd. (plaintiff) v. South Fish Creek Recreational Association (defendant)

(1001 13790; 2015 ABQB 330)

Indexed As: Elan Construction Ltd. v. South Fish Creek Recreational Association

Alberta Court of Queen's Bench

Judicial District of Calgary

Tilleman, J.

May 29, 2015.

Summary:

The South Fish Creek Recreational Association (SFCRA) wished to expand its recreational facilities by adding two more ice surfaces to its existing complex. SFCRA solicited tenders for the general contract for the project. Elan Construction Ltd. submitted a bid in response to the SFCRA's tender. Therefore a Contract A as described in Ron Engineering (SCC) was formed. The bids were evaluated using an evaluation matrix that provided for a maximum of 100 points based on four criteria. Eleven bids were received and the contract was awarded to Chandos Construction. Elan commenced an action against SFCRA, alleging a breach of Contract A. A dispute arose over the admissibility of a certain document (i.e., a letter from one of SFCRA's consultants). A voir dire was held.

The Alberta Court of Queen's Bench, in a decision reported (2015), 613 A.R. 135, ruled that the letter was relevant and could be used in questioning the witnesses of the defendant (i.e., SFCRA). The matter proceeded.

The Alberta Court of Queen's Bench held that the SFCRA breached the bid contract with Elan in its evaluation of the bid under the evaluation matrix. The court held that it was a virtual certainty that Elan would have been awarded the general contract had the evaluation been carried out properly. However, the court concluded that Elan's damages were nil because it would have suffered a substantial loss had it been awarded the contract, as evidenced by Chandos' experience. However, in recognition of the fact that SFCRA did breach Contract A, the court awarded nominal damages of $1,000.

Building Contracts - Topic 1301

Tender calls - General - See paragraphs 77 to 86.

Building Contracts - Topic 1385

Tender calls - Breach of tender - Action for breach - General - See paragraphs 87 to 99.

Building Contracts - Topic 1389

Tender calls - Breach of tender - Damages - See paragraphs 100 to 158.

Counsel:

Phillip Carson (Miller Thompson), for the defendant, South Fish Creek Recreational Association;

Todd Kathol (Field Law), for the plaintiff, Elan Construction Ltd.

This matter was heard in Calgary, Alberta, on November 12 to 14, 17, 19 and 25, 2014, and March 2, 6 and 17, 2015, before Tilleman, J., of the Alberta Court of Queen's Bench, who delivered the following decision on May 29, 2015.

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6 practice notes
  • Elan Construction Ltd. v. South Fish Creek Recreational Association, 2016 ABCA 215
    • Canada
    • Court of Appeal (Alberta)
    • June 16, 2016
    ...the witnesses of the defendant (i.e., SFCRA). The matter proceeded. The Alberta Court of Queen's Bench, in a decision reported (2015), 613 A.R. 140, held that the SFCRA breached the bid contract with Elan in its evaluation of the bid under the evaluation matrix. The court held that it was a......
  • Construction Case Law Update – Canada
    • Canada
    • Mondaq Canada
    • June 22, 2016
    ...and are relevant to best practices in procurement in this province. In Elan Construction Ltd. v. South Fish Creek Recreational Assn., 2015 ABQB 330, the court found that the Defendant, a non-profit society, breached its duty of fairness in Contract A when it awarded Contract B to a bidder, ......
  • Summer Tendering Update: Reasonable Expectations And Negative Contingencies
    • Canada
    • Mondaq Canada
    • October 19, 2016
    ...considered and clarified two aspects of tendering law. In Elan Construction Limited v South Fish Creek Recreational Association, 2015 ABQB 330, the Alberta Court of Queen's bench ruled that, despite the reservation of "sole and unfettered discretion" for the benefit of an owner when applyin......
  • Summer Tendering Update: Reasonable Expectations and Negative Contingencies
    • Canada
    • JD Supra Canada
    • October 14, 2016
    ...two aspects of tendering law. In Elan Construction Limited v South Fish Creek Recreational Association, 2015 ABQB 330, the Alberta Court of Queen’s bench ruled that, despite the reservation of “sole and unfettered discretion” for the benefit of an owner when applying bid evaluation criteria......
  • Request a trial to view additional results
2 cases
  • Elan Construction Ltd. v. South Fish Creek Recreational Association, 2016 ABCA 215
    • Canada
    • Court of Appeal (Alberta)
    • June 16, 2016
    ...the witnesses of the defendant (i.e., SFCRA). The matter proceeded. The Alberta Court of Queen's Bench, in a decision reported (2015), 613 A.R. 140, held that the SFCRA breached the bid contract with Elan in its evaluation of the bid under the evaluation matrix. The court held that it was a......
  • Johnson v Battle River Feeders Association Ltd., 2018 ABPC 247
    • Canada
    • Provincial Court of Alberta (Canada)
    • October 25, 2018
    ...of good faith even though it has not acted dishonestly or with malice (see, Elan Construction Ltd. v South Fish Recreational Association, 2015 ABQB 330). [74]        Elan Construction arose out of a tendering process. Prospective tenderers were given bid d......
4 firm's commentaries
  • Construction Case Law Update – Canada
    • Canada
    • Mondaq Canada
    • June 22, 2016
    ...and are relevant to best practices in procurement in this province. In Elan Construction Ltd. v. South Fish Creek Recreational Assn., 2015 ABQB 330, the court found that the Defendant, a non-profit society, breached its duty of fairness in Contract A when it awarded Contract B to a bidder, ......
  • Summer Tendering Update: Reasonable Expectations And Negative Contingencies
    • Canada
    • Mondaq Canada
    • October 19, 2016
    ...considered and clarified two aspects of tendering law. In Elan Construction Limited v South Fish Creek Recreational Association, 2015 ABQB 330, the Alberta Court of Queen's bench ruled that, despite the reservation of "sole and unfettered discretion" for the benefit of an owner when applyin......
  • Summer Tendering Update: Reasonable Expectations and Negative Contingencies
    • Canada
    • JD Supra Canada
    • October 14, 2016
    ...two aspects of tendering law. In Elan Construction Limited v South Fish Creek Recreational Association, 2015 ABQB 330, the Alberta Court of Queen’s bench ruled that, despite the reservation of “sole and unfettered discretion” for the benefit of an owner when applying bid evaluation criteria......
  • Tendering Law Post-Bhasin: Questions About Honest Contract Performance
    • Canada
    • Mondaq Canada
    • April 10, 2016
    ...Contractors: The Effect of Exclusion Clauses on the Tendering Process", (2010) 49 Can Bus LJ 187 at 190. Bhasin, supra note 1 at para 74. 2015 ABQB 330. Ibid. at para The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought......

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