Welbridge Holdings Ltd. v. Greater Winnipeg

Welbridge Holdings Ltd. v. Greater Winnipeg

A municipality does not owe a private tort duty of care for economic loss resulting from the enactment of a zoning by-law later declared invalid due to procedural defects; there was no assumption of responsibility or special relationship sufficient to found Hedley Byrne liability and the representations were not false or misleading, therefore no actionable negligence by the municipality was established.

Citation
[1971] SCR 957
Parties
Plaintiff/appellant: Welbridge Holdings Ltd.; Defendant/respondent: The Metropolitan Corporation of Greater Winnipeg
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
17 December 1970
Procedural Posture
Tort — Negligence (municipal Law, Zoning) / Appeal to Supreme Court of Canada From the Court of Appeal for Manitoba; Final Judgment on Appeal
Outcome
Appeal dismissed with costs.
Legal Topics
Negligence, Duty of Care, Zoning by Law Validity, Procedural Fairness, Quasi Judicial Functions, Reliance and Assumption of Responsibility
Source Language
English
Municipal Law Tort Administrative Law Negligence Duty of Care Zoning by Law Validity Procedural Fairness Quasi Judicial Functions +1 more

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Parties

Welbridge Holdings Ltd.

Plaintiff/appellant

The Metropolitan Corporation of Greater Winnipeg

Defendant/respondent

Procedural Posture

Tort — Negligence (municipal Law, Zoning) / Appeal to Supreme Court of Canada From the Court of Appeal for Manitoba; Final Judgment on Appeal

Legal Issues

  1. 1 Whether a municipality owes a private tort duty of care for economic loss caused by enactment of an invalid zoning by-law due to failure to follow required procedural notice steps
  2. 2 Whether representations or conduct of the municipality created an assumption of responsibility to the developer sufficient to found liability (Hedley Byrne issue)
  3. 3 Whether quasi-judicial or legislative acts exposing private parties to loss give rise to liability in negligence

Ratio Decidendi

A municipality does not owe a private tort duty of care for economic loss resulting from the enactment of a zoning by-law later declared invalid due to procedural defects; there was no assumption of responsibility or special relationship sufficient to found Hedley Byrne liability and the representations were not false or misleading, therefore no actionable negligence by the municipality was established.

Court Disposition

Appeal dismissed with costs.

Orders

  • Appeal dismissed with costs.