Ken Toby Ltd. v. British Columbia Buildings Corp.

Ken Toby Ltd. v. British Columbia Buildings Corp.

The Court of Appeal held there was no contractual relationship between the Owner and the sub-contractor created by deposit of sub-trade bids because the Invitation to Tender was addressed to general contractors and the bid depository rules did not convert sub-contractor deposits into a unilateral contract with the...

Source-derived case information.

Citation
1999 BCCA 214
Parties
Plaintiff (respondent): Ken Toby Ltd.; Defendant (appellant): British Columbia Buildings Corporation
Court
British Columbia Court of Appeal
Jurisdiction
Canada
Judgment Date
1 April 1999
Procedural Posture
Civil Appeal (contract and Tort) / Court of Appeal Judgment on Appeal From Supreme Court Trial Judgment
Outcome
Appeal allowed; judgment below set aside; action dismissed with costs to appellant
Legal Topics
Bid Depository Systems, Unilateral Contract / Contract a, Duty of Care in Tendering, Good Faith in Procurement, Exclusion of Liability Clauses, Bid Shopping, Addenda to Tender Documents
Source Language
english
Contract Law Tort (negligence) Construction Law Administrative/tendering Law Bid Depository Systems Unilateral Contract / Contract a Duty of Care in Tendering Good Faith in Procurement +3 more

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Summary, issues, holding and outcome

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Parties

Ken Toby Ltd.

Plaintiff (respondent)

British Columbia Buildings Corporation

Defendant (appellant)

Procedural Posture

Civil Appeal (contract and Tort) / Court of Appeal Judgment on Appeal From Supreme Court Trial Judgment

Legal Issues

  1. 1 Whether a legally enforceable contract arose between the Owner and a sub-contractor by submission of bids to a bid depository
  2. 2 Whether the Owner owed a duty of care to the sub-contractor in respect of the bid depository process
  3. 3 Whether issuance of Addendum 14 breached the Bid Depository Rules or the Owner's duty of good faith

Ratio Decidendi

The Court of Appeal held there was no contractual relationship between the Owner and the sub-contractor created by deposit of sub-trade bids because the Invitation to Tender was addressed to general contractors and the bid depository rules did not convert sub-contractor deposits into a unilateral contract with the Owner; the Owner did not breach a duty of care by issuing Addendum 14 as the relevant Rule language was exhortatory and the addendum was a reasonable response to protect the bidding process; and the contractual acceptance of the Bid Depository Rules including a clear exclusion of liability precluded the negligence claim—therefore the trial judgment for damages was set aside and...

Court Disposition

Appeal allowed; judgment below set aside; action dismissed with costs to appellant

Orders

  • Allow appeal
  • Set aside judgment of Supreme Court dated 7 May 1997