The plaintiffs, a joint venture, sued the Attorney General of Canada for damages arising from a flawed government procurement process for relocation services.
The plaintiffs alleged that the Crown breached its implied contractual duty of fair and equal treatment by designing the Request for Proposals to favour the incumbent contractor, Royal LePage Relocation Services.
The court found that the Crown acted in bad faith, intentionally concealed preferences in the tender documents, and allowed the incumbent to submit a non-compliant bid regarding property management services.
The court declared the plaintiffs the successful tendering party and awarded them $29,166,507 in damages for lost profits.
A claim for punitive damages was dismissed.
