The municipality appealed a judgment ordering restitution of $82,898.63 for event production services provided by a public relations firm through its subcontractor, where no valid municipal contract existed because the mandate was never authorized by council resolution or by an officer with delegated powers.
The Supreme Court held that the rules on restitution of prestations under the Civil Code of Québec apply in the municipal context and are not excluded by the public order provisions of the Cities and Towns Act.
Although no contract existed to be annulled, the conditions for receipt of a payment not due under art. 1491 C.C.Q. were satisfied, as the firm provided services in error believing it had a valid mandate.
The municipality's appeal was dismissed (6-3), with the dissent finding the firm knew at the time of payment that no contract existed and therefore did not pay in error.
