The appellant contractor successfully bid on a road building contract and entered into a contract with the province.
The contractor alleged it lost money due to errors in the specifications and construction drawings prepared by the respondent engineering firm.
The contractor sued the engineering firm and the individual engineers for negligent misrepresentation.
The Supreme Court of Canada held that the engineering firm owed a duty of care to the contractor, as the firm knew contractors would rely on its tender documents.
The contract between the contractor and the province did not negate this duty.
However, the Court dismissed the claim against the individual engineers, finding that merely affixing a professional seal to the documents was insufficient to establish a duty of care.
