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Good for the Goose

Posted in Construction

We all know that generals can successfully sue owners for breach of the tender contract. However, in Ontario it was nigh well impossible for subs to successfully sue generals for breach of the tender contract. A general would carry a sub’s bid in the general’s tender to the owner; the tender would be accepted; the general would for one reason or another enter into a construction contract with a different sub; the sub would sue the general; and the sub would lose. Not any more! A 1999 decision of the Ontario Court of Appeal in Naylor Group Inc. v. Ellis-Don Construction Ltd. (trial decision discussed in January 1997 newsletter) has changed the rules of the game.

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