The federal Crown brought a motion to strike an action for breach of contract and negligent misrepresentation relating to a construction contract for the replacement of a dam in Quebec.
The court held that the contractual claim arose in Quebec because the project, contract administration, and relevant decisions occurred there.
Although the alleged negligent misrepresentation claim was connected to Ontario because tender documents were obtained and relied upon in Ontario, the contract constituted a complete code governing compensation for extra costs and delays.
Interpreting the contract, the court concluded that the parties had excluded concurrent liability in tort.
As a result, the negligent misrepresentation claim was struck and the remaining contractual claim, which arose in Quebec, could not be heard in Ontario under the Crown Liability and Proceedings Act.
