The plaintiff, ASI Group Ltd., brought a summary judgment motion against the City of Toronto, alleging a breach of the duty of fairness.
ASI was the lowest compliant bidder for a diving services contract (RFQ#1), but the City cancelled RFQ#1 and re-tendered (RFQ#2), which was subsequently awarded to another bidder.
The City justified the cancellation by claiming the integrity of the tender process for RFQ#1 had been compromised due to the unavailability of previous inspection reports and facility drawings, and a competitive advantage held by bidders with prior experience.
The court found that the City had the contractual right to cancel RFQ#1 under a privilege clause and its Purchasing Bylaw.
It further determined that the unavailability of critical documents and the existing competitive advantage legitimately compromised the integrity of the tender process.
The court concluded that the City acted fairly and equally by cancelling and re-tendering the project, thereby not breaching its duty of fairness.
The motion for summary judgment on liability was dismissed, finding no liability on the City.