Amertek Inc. sued the Canadian Commercial Corporation (CCC) after losing money on a subcontract to supply fire crash trucks to the U.S. Army.
The trial judge found CCC liable for deceit, breach of fiduciary duty, breach of contract, and unjust enrichment, awarding disgorgement of a re-procurement penalty CCC avoided.
On appeal, the Court of Appeal overturned the trial decision, finding palpable and overriding errors in the trial judge's conclusions.
The Court held that CCC's statements about the contract's profitability were not false when made, Amertek did not rely on them, the relationship was purely commercial rather than fiduciary, and there was no breach of contract or unjust enrichment.
The appeal was allowed and Amertek's action was dismissed.