D'Arcy v. Canada ( Minister of Supply and Services )
T-1360-87
MacKay J.
30/9/92
45 pp.
Action for breach of contract for tailoring and seamstress services to be provided for Department of National Defence on which plaintiffs successful bidder -- Plaintiffs alleging demands placed on them by DND so much more than unexceptional tailoring and alteration work reasonably anticipated that constituted breach of contract, compelling plaintiffs to quit job site and withdraw services -- Alleging breach of expressed terms of written agreement and breach of verbal representations by DND prior to completion of contract and subsequently in relation to proposed amendment to terms -- Action dismissed -- Request for Standing Offer constituting offer for contract -- In completing bid, plaintiffs promising to render certain services on certain conditions and for certain prices -- Offer accepted by DND requesting plaintiffs' services -- Request for Standing Offer and Standing Offer including clause specifying General Conditions, DSS 9076 forming part of contract -- General Conditions providing contract containing entire agreement, but DSS not establishing copy of General Conditions sent to plaintiffs -- Standing Offer also containing clause contract conditions not to be altered without written instructions from Minister -- Most, if not all, of plaintiffs' expressed concerns at time relating to increased work due to unanticipated difficulties in fitting, defects in particular supplier's garments, difficulties in sewing service badges to headgear, dealt with by amendments or agreement to make formal amendments to Standing Offer -- No breach of any undertaking given by person authorized by Minister to pay added price for service of tailor -- Only persons with such authority refusing to change terms of Standing Offer to include such payment -- As no evidence of bad faith, no basis for exemplary or punitive damages -- Claim for payment of work completed but not paid for, not established as offset by overpayments on other work -- In event finding on liability reversed on appeal, Court fixing general damages or profits lost by loss of balance of work at $112,000 -- If damages lie, plaintiffs entitled to pre-judgment interest -- Department of Supply and Services Act, R.S.C., 1985, c. S-25, ss. 17, 18 -- Financial Administration Act, R.S.C., 1985, c. F[ib]-11 -- Crown Liability and Proceedings Act, R.S.C., 1985, c. C[ib]-50, s. 31 (as am. by S.C. 1990, c. 8, s. 31).