Graillen Holdings Inc. v. Orangeville (Town)

Graillen Holdings Inc. v. Orangeville (Town)

The appellants failed to prove on a balance of probabilities that they would have been awarded the contract absent the Town’s alleged acceptance of a non-compliant bid; given the viability of a dewatering option and defects in Rohe’s bid, it was open to the Town to re-tender and to legitimately terminate the...

Source-derived case information.

Citation
2017 ONCA 520
Parties
Appellant (plaintiff): Graillen Holdings Inc.; Appellant (plaintiff): Region of Huronia Environmental Services Ltd.; Respondent (defendant): The Corporation of the Town of Orangeville
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
21 June 2017
Procedural Posture
Civil / Appeal From Superior Court Judgment (on Damages and Termination of Purchase and Sale)
Outcome
Appeal dismissed
Legal Topics
Tender Process Compliance, Breach of Contract, Termination Clause and Good Faith, Damages and Causation, Specific Performance Claim
Source Language
english
Contract Law Municipal Procurement / Tendering Property Law Tender Process Compliance Breach of Contract Termination Clause and Good Faith Damages and Causation Specific Performance Claim

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Parties

Graillen Holdings Inc.

Appellant (plaintiff)

Region of Huronia Environmental Services Ltd.

Appellant (plaintiff)

The Corporation of the Town of Orangeville

Respondent (defendant)

Procedural Posture

Civil / Appeal From Superior Court Judgment (on Damages and Termination of Purchase and Sale)

Legal Issues

  1. 1 Was the respondent’s acceptance of a non-compliant bid a breach of the tendering process?
  2. 2 Were the appellants entitled to damages arising from the alleged breach of the tendering process?
  3. 3 Would the contract have been awarded to the appellants but for the breach (causation)?

Ratio Decidendi

The appellants failed to prove on a balance of probabilities that they would have been awarded the contract absent the Town’s alleged acceptance of a non-compliant bid; given the viability of a dewatering option and defects in Rohe’s bid, it was open to the Town to re-tender and to legitimately terminate the purchase and sale in good faith, so the dismissal of the action and return of the Town's deposit were upheld.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed
  • Respondent awarded partial indemnity costs in the amount of $45,000 inclusive of disbursements and HST