The appellants were subcontractors to a general contractor who submitted a bid for a design-build construction project.
The owner awarded the contract to a non-compliant bidder.
The general contractor settled its claim against the owner, but the subcontractors sued the owner in tort for pure economic loss.
The Supreme Court of Canada held that the owner did not owe a duty of care to the subcontractors.
The claim did not fall within a recognized category of pure economic loss, and recognizing a new duty of care was not justified because the subcontractors could have protected themselves by forming a joint venture with the general contractor.
