Relocation Deal Fiasco Costs Federal Government $30 Million

We often talk about breach of contract lawsuits when it comes to employment contracts – such as what you can do if your employer isn’t fulfilling their contractual obligations and other situations that can arise. As a recent landmark case illustrates, contractual obligations can effectively begin even before the papers are signed.

The federal government was recently ordered to pay just under $30 million to the losing bidder of an enormous contract. The ruling judge concluded that the company should have won a five-year deal to supply relocation services to up to 18,000 military personnel, RCMP and bureaucrats who move each year as a result of new postings. It’s the largest deal of its kind in North America and is worth many millions of dollars and the Justice found that it had been deliberately diverted to another bidder. The other bidder also won contracts in 1999, 2002, 2004 and 2009.

“In summary, it was found the Crown had acted intentionally to unfairly favour RLRS by repeating the 2002 property management services provisions in the 2004 RFP and by modifying the selection formula to play to RLRS strengths,” Annis wrote in his decision released late Saturday.

Justice Peter Annis

“These findings had consequences in determining that the RLRS bid was non-complaint and in declaring a breach of the Crown’s implied contractual duty of fair and equal treatment of tendering parties.”

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Any agreement is considered a contract and clearly the judge considers the tendering process itself an implied contractual arrangement.

Even the federal government can be held accountable for breaches of contract.

Contractual Obligations

You may never be dealing in contracts worth millions, but any purchase agreement involves contractual obligations. Do those obligations simply end when one of the parties to a contract goes out of business? In this economic climate, it’s a possibility we’re all faced with on a regular basis.

You shouldn’t be left with the short end of the stick when a business goes south and if you’re ever in that situation, you’ll need the help of experienced breach of contract lawyers.

Prevention is the Best Remedy

Before you sign on the dotted line – if you’re in the process or thinking of entering into a contract whether it involves a sale or employment, then contact our experienced breach of contract lawyers for advice. Clarity on the issues covered by a contract is your key to understanding your rights.

Legal Remedies

You only have a limited time to take action in a breach of contract case. If you think your rights under a contractual agreement are being disregarded contact Petrillo Law today for a free consultation with an experienced contract lawyer.

Get the Legal Representation You Need

Know your rights. Contact the breach of contract and disability lawyers at Petrillo Law today by calling (905) 949-9433.  We look forward to hearing from you.

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