The plaintiff mining company retained the defendant engineering consultants to provide a feasibility study for a proposed mineral resource development.
After nearly four years and over $3 million in expenditures, the defendants reported the resource was insufficient to proceed.
The plaintiff sued for professional negligence, breach of contract, and negligent misrepresentation, arguing the defendants should have made this determination much sooner.
The court found the defendants breached their duty of care and made negligent misrepresentations by failing to properly manage the project, verify the resource model, and communicate concerns.
The court awarded the plaintiff $1,250,000 in damages for 'unnecessary waste' and dismissed the defendants' counterclaim for unpaid fees.
