MRK Holdings Ltd. v. Newfoundland and Labrador Housing, (2005) 245 Nfld. & P.E.I.R. 177 (NLTD)

• Judge: Dunn, J.
• Court: Supreme Court of Newfoundland and Labrador (Canada)
• Case Date: January 27, 2005
• Jurisdiction: Newfoundland and Labrador
• Citations: (2005), 245 Nfld. & P.E.I.R. 177 (NLTD)

MRK Holdings v. NLHC (2005), 245 Nfld. & P.E.I.R. 177 (NLTD);

  730 A.P.R. 177

MLB headnote and full text

Temp. Cite: [2005] Nfld. & P.E.I.R. TBEd. JA.047

MRK Holdings Limited (plaintiff) v. Newfoundland and Labrador Housing (defendant)

(1997 St.J. No. 573; 2005 NLTD 24)

Indexed As: MRK Holdings Ltd. v. Newfoundland and Labrador Housing

Newfoundland and Labrador Supreme Court

Trial Division

Dunn, J.

January 27, 2005.

Summary:

The plaintiff's bid to purchase the defendant's apartment complex contained an addendum making the bid subject to financing and a return of the bid deposit if the bid was accepted and financing was not obtained. The defendant determined the bid to be a noncompliant bid (no "Contract A"). The plaintiff alleged that the defendant's property manager had advised that such a bid would not be invalid. The plaintiff sued for damages for negligent misrepresentation, negligence and breach of contract.

The Newfoundland and Labrador Supreme Court, Trial Division, dismissed the action.

Building Contracts - Topic 1311.2

Tender calls - General - Tender call vs. request for proposal - [See Contracts - Topic 1270 ].

Contracts - Topic 1270

Formation of contract - Tender calls - Bid - Effect of (incl. noncompliant bids) - The plaintiff's bid in response to the defendant's proposal call for the purchase of an apartment complex included an addendum making the bid subject to financing and a return of the bid deposit if the bid were accepted and financing was not obtained - The defendant determined the bid to be a noncompliant bid (no "Contract A") - The plaintiff alleged that the defendant's property manager had advised that the addendum would not invalidate the bid - The plaintiff sued for damages for negligent misrepresentation, negligence and breach of contract - The Newfoundland and Labrador Supreme Court, Trial Division, dismissed the action - The proposal call was akin to a tender call and the proposal call documents unambiguously did not permit a bid subject to financing and a return of the deposit - Since the plaintiff's bid was noncompliant, the bid was invalid and no "Contract A" was created - The plaintiff failed to establish negligent misrepresentation - There was no untrue, inaccurate or misleading representation and no reliance (plaintiff relied on its own misinterpretation of the bid documents).

Fraud and Misrepresentation - Topic 2508

Misrepresentation - General principles - Negligent misrepresentation - [See Contracts - Topic 1270 ].

Fraud and Misrepresentation - Topic 2825

Misrepresentation - Defences - Lack of reliance - [See Contracts - Topic 1270 ].

Cases Noticed:

Labrador Airways Ltd. v. Canada Post Corp. et al. (2001), 198 Nfld. & P.E.I.R. 116; 595 A.P.R. 116 (N.L.T.D.), refd to. [para. 15].

Ron Engineering & Construction (Eastern) Ltd. v. Ontario and Water Resources Commission, [1981] 1 S.C.R. 111; 35 N.R. 40; 119 D.L.R.(3d) 267, refd to. [para. 18].

M.J.B. Enterprises Ltd. v. Defence Construction (1951) Co. et al., [1999] 1 S.C.R. 619; 237 N.R. 334; 232 A.R. 360; 195 W.A.C. 360; 170 D.L.R.(4th) 577, refd to. [paras. 19, 21, footnote 1].

Best Cleaners and Contractors Ltd. v. R., [1985] 2 F.C. 293; 58 N.R. 295 (F.C.A.), refd to. [para. 21, footnote 1].

Elgin Construction Ltd. v. Russell (Township) (1987), 24 C.L.R. 253 (Ont. H.C.), refd to. [para. 21, footnote 1].

Chinook Aggregates Ltd. v. Abbotsford (Municipal District) (1987), 28 C.L.R. 290 (B.C. Co. Ct.), affd. (1989), 35 C.L.R. 241 (B.C.C.A.) refd to. [para. 21, footnote 1].

Acme Building and Construction Ltd. v. Newcastle (Town) (1990), 38 C.L.R. 56 (Ont. Dist. Ct.), affd. (1992), 2 C.L.R.(2d) 308 (Ont. C.A.), leave to appeal refused (1993), 151 N.R. 394; 63 O.A.C. 399 (S.C.C.), refd to. [para. 21, footnote 1].

Megatech Contracting Ltd. v. Ottawa-Carleton (Regional Municipality) (1989), 34 C.L.R. 35 (Ont. H.C.), refd to. [para. 21, footnote 1].

Kencor Holdings Ltd. v. Saskatchewan, [1991] 6 W.W.R. 717; 96 Sask.R. 171 (Q.B.), refd to. [para. 21, footnote 1].

Power Agencies Co. and Du Pont Canada Inc. v. Newfoundland Hospital and Nursing Home Association (1991), 90 Nfld. & P.E.I.R. 64; 280 A.P.R. 64 (Nfld. T.D.), refd to. [para. 21, footnote 1].

Martselos Services Ltd. v. Arctic College (1992), 5 B.L.R.(2d) 204 (N.W.T.S.C.), revd. [1994] 3 W.W.R. 73 (N.W.T.C.A.), leave to appeal refused, [1994] 3 S.C.R. viii; 178 N.R. 80; 17 C.L.R.(2d) 59, refd to. [para. 21, footnote 1].

Colautti Brothers Marble Tile and Carpet (1985) Inc. v. Windsor (City) (1996), 21 O.T.C. 68; 36 M.P.L.R.(2d) 258 (Gen. Div.), refd to. [para. 21, footnote 1].

Thompson Brothers (Construction) Ltd. v. Wetaskiwin (City), [1998] 1 W.W.R. 101; 205 A.R. 185 (Q.B.), refd to. [para. 21, footnote 1].

Tarmac Canada Inc. v. Hamilton-Wentworth (Regional Municipality) (1997), 40 O.T.C. 68; 34 C.L.R.(2d) 123 (Gen. Div.), affd. (1999), 125 O.A.C. 72 (C.A.), refd to. [para. 21, footnote 1].

Wimpey (George) Canada Ltd. v. Hamilton-Wentworth (Regional Municipality) - see Tarmac Canada Inc. v. Hamilton-Wentworth (Regional Municipality).

Sound Contracting Ltd. v. Nanaimo (City), [1997] B.C.T.C. Uned. B01; 42 M.P.L.R.(2d) 202 (S.C.), revd. (2000), 138 B.C.A.C. 116; 226 W.A.C. 116; 11 M.P.L.R.(3d) 49 (C.A.), leave to appeal dismissed (2001), 267 N.R. 195; 154 B.C.A.C. 318; 252 W.A.C. 318 (S.C.C.), refd to. [para. 21, footnote 1].

Midwest Management Ltd./Monad Contractors Ltd. (Joint Venture) et al. v. BC Gas Utility Ltd. (1999), 16 B.C.T.C. 30; 47 C.L.R.(2d) 101 (S.C.), varied (2000), 147 B.C.A.C. 175; 241 W.A.C. 175; 5 C.L.R.(3d) 140 (C.A.), refd to. [paras. 21, 25, footnote 1].

Martel Building Ltd. v. Canada, [2000] 2 S.C.R. 860; 262 N.R. 285; 2000 SCC 60, refd to. [paras. 21, 28, footnote 1].

Cable Assembly Systems Ltd. v. Board of Education (Roman Catholic Separate) of Dufferin-Peel (2002), 155 O.A.C. 139; 13 C.L.R.(3d) 163 (C.A.), refd to. [para. 21, footnote 1].

Oviatt (J.) Contracting Ltd. v. Kitimat General Hospital Society (2002), 171 B.C.A.C. 190; 280 W.A.C. 190; 16 C.L.R.(3d) 111 (C.A.), refd to. [para. 21, footnote 1].

Wind Power Inc. et al. v. Saskatchewan Power Corp. (2002), 217 Sask.R. 193; 265 W.A.C. 193; 15 C.L.R.(3d) 291 (C.A.), leave to appeal dismissed (2002), 307 N.R. 199; 238 Sask.R. 159; 305 W.A.C. 159 (S.C.C.), refd to. [para. 1, footnote 1].

Mellco Developments Ltd. v. Portage la Prairie (City) (2001), 167 Man.R.(2d) 161; 11 C.L.R.(3d) 227 (Q.B.), affd. (2002), 166 Man.R.(2d) 285; 278 W.A.C. 285; 222 D.L.R.(4th) 67 (C.A.), leave to appeal dismissed (2003), 313 N.R. 194: 180 Man.R.(2d) 321; 310 W.A.C. 321 (S.C.C.), refd to. [para. 21, footnote 1].

Kinetic Construction Ltd. v. Comox-Strathcona (Regional District), [2003] B.C.T.C. 1673; 2003 BCSC 1673 (S.C.), refd to. [para. 21, footnote 1].

Cartwright and Crickmore Ltd. v. MacInnes, [1931] S.C.R. 425; [1931] 3 D.L.R. 693 (S.C.C.), refd to. [para. 29].

Authors and Works Noticed:

Goodfellow, W. Donald, The Supreme Court of Canada Defines the Privilege Clause in the Tendering Process, p. 235 [para. 29].

Sandori, Paul, and Pigott, William M., Bidding and Tendering: What is the Law (3rd Ed.), pp. 17, 18 [para. 20]; c. 3, p. 79 [para. 21]; 230 [para. 22].

Counsel:

Geoffrey E.J. Brown, for the plaintiff;

Gerald F. O'Brien, Q.C., for the defendant.

This action was heard at St. John's, Nfld. & Lab., before Dunn, J., of the Newfoundland and Labrador Supreme Court, Trial Division, who delivered the following judgment on January 27, 2005.