Design Services Ltd. v. Canada, 2008 SCC 22
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(Negligence / Duty of care / Recovery for pure economic loss)
DS and the other appellants were sub-contractors who applied under a general contractor to a governmental tendering project to design and build a building. There was no partnership or joint venture between the general contractor and the sub-contractors. When the contract was awarded to another, non-compliant bidder, the general contractor and the sub-contractors sued. The general contractor ultimately settled its claim. The Court held that the sub-contractors have no tort claim, as the duty of care owed to the general contractor should not be extended to the sub-contractors.
Majority/Dissent: 7/0