Distinguishes Ron Engineering. FOR EDUCATIONAL USE ONLY 2002 CarswellMan 409 2002 MBCA 125, 32 M.P.L.R. (3d) 1, 28 B.L.R. (3d) 17, 19 C.L.R. (3d) 1, 166 Man. R. (2d) 285, 222 D.L.R. (4th) 67, [2003] 1 W.W.R. 216, 4 R.P.R. (4th) 28, 278 W.A.C. 285 Mellco Developments Ltd. v. Portage la Prairie (City) Mellco Developments Ltd. and Newton Enterprises (1983) (Plaintiffs/Appellants) and The City of Portage la Prairie and Lions Park Housing Inc. (Defendants/Respondents) Mellco Developments Ltd. and Newton Enterprises (1983) (Plaintiffs/Appellants) and Lions Park Housing Inc. and Lions Club of Portage la Prairie (Defendants/Respondents) Manitoba Court of Appeal Scott C.J.M., Kroft, Steel JJ.A. Heard: June 11, 2002 Judgment: October 1, 2002 Docket: AI 01-30-05134, AI-30-05135 Copyright © CARSWELL, a Division of Thomson Canada Ltd. or its Licensors. All rights reserved. Proceedings: affirming 2001 MBQB 236, 2001 CarswellMan 442, 22 M.P.L.R. (3d) 227, [2001] 11 W.W.R. 282, 11 C.L.R. (3d) 227, 21 B.L.R. (3d) 25 (Man. Q.B.) Counsel: G.P.S. Riley, J.A. Myers, for Appellants R.B. McNicol, Q.C., D.G. Giles, for Respondent, City of Portage la Prairie R.A. Dewar, Q.C., for Respondents, Lions Park Housing Inc. and Lions Club of Portage la Prairie Subject: Public; Contracts; Restitution; Civil Practice and Procedure; Torts; Property Municipal law --- Municipal contracts -- General City issued request for proposals (RFP) for residential development of land it owned -Two proposals received were made by plaintiffs and defendants -- City determined that defendants' proposal was most attractive and began negotiations with it -- Plaintiffs began public and private campaign to oppose negotiations -- When negotiations were completed and land transferred to defendants, plaintiffs commenced actions against defendants and city -- Plaintiffs also filed caveat against title to lands and registered pending litigation order against title, which effectively brought development to standstill - Plaintiffs' actions were dismissed -- Trial judge held plaintiffs' claims were premised on inappropriate and incorrect interpretation of RFP, which was not simple call for tender or bid -- Trial judge held RFP was absolutely clear that there was no construction contract until one was negotiated and agreement reached -- Trial judge found city was seeking concepts for development of land and maintained wide and absolute discretion to pick whichever proposal it thought most attractive -- Plaintiffs appealed -- Appeal dismissed -Requirement of good faith and fairness could not be implied where no initial contract existed, nor is general duty to bargain in good faith enforceable -- Trial judge's conclusions were confirmed. Construction law --- Building contract -- Execution of formal contract -- Municipal building contracts: requisite authority and formalities City issued request for proposals (RFP) for residential development of land it owned -Two proposals received were made by plaintiffs and defendants -- City determined that defendants' proposal was most attractive and began negotiations with it -- Plaintiffs began public and private campaign to oppose negotiations -- When negotiations were completed and land transferred to defendants, plaintiffs commenced actions against defendants and city -- Plaintiffs also filed caveat against title to lands and registered pending litigation order against title, which effectively brought development to standstill - Plaintiffs' actions were dismissed -- Trial judge held plaintiffs' claims were premised on inappropriate and incorrect interpretation of RFP, which was not simple call for tender or bid -- Trial judge held RFP was absolutely clear that there was no construction contract until one was negotiated and agreement reached -- Trial judge found city was seeking concepts for development of land and maintained wide and absolute discretion to pick whichever proposal it thought most attractive -- Plaintiffs appealed -- Appeal dismissed -Requirement of good faith and fairness could not be implied where no initial contract existed, nor is general duty to bargain in good faith enforceable -- Trial judge's conclusions were confirmed. Construction law --- Breach of terms of contract -- Damages -- Penalties and liquidated damages -- Application of damages provisions City issued request for proposals (RFP) for residential development of land it owned -Two proposals received were made by plaintiffs and defendants -- City determined that defendants' proposal was most attractive and began negotiations with it -- Plaintiffs began public and private campaign to oppose negotiations -- When negotiations were completed and land transferred to defendants, plaintiffs commenced unsuccessful actions against defendants and city claiming wording of RFP required city to negotiate and contract with plaintiffs and not defendants -- Plaintiffs also filed caveat against title to lands and registered pending litigation order against title, which brought development to standstill -- Defendants' counterclaim for declaration that plaintiffs had no interest in land and for general and exemplary damages for losses caused by plaintiffs hindering and delaying development of land was allowed -- Trial judge held defendants were entitled to declaration sought and to immediate discharge of caveat and pending litigation order from title -- Trial judge held plaintiffs' registration of caveat and pending litigation order after title had been transferred to club was unreasonable and actionable and any damages were recoverable -- Trial judge awarded defendants general damages of $35,000 having regard to interest costs and likelihood of increased development and construction costs by reason of two year delay and exemplary damages of $10,000 -Defendants appealed quantum of punitive damages -- Appeal dismissed -- Plaintiffs had no reasonable claim to interest in land to support filing of caveat and pending litigation order -- Assessment of damages by trial judge was somewhat arbitrary but not unreasonable -- Award of punitive damages was not so inordinately low as to warrant interference. Restitution --- General principles -- Bars to recovery -- No deprivation corresponding to enrichment City issued request for proposals (RFP) for residential development of land it owned -Two proposals received were made by plaintiffs and defendants -- City determined that defendants' proposal was most attractive and began negotiations with it -- Plaintiffs began public and private campaign to oppose negotiations -- When negotiations were completed and land transferred to defendants, plaintiffs commenced actions against defendants and city -- Plaintiffs also filed caveat against title to lands and registered pending litigation order against title, which effectively brought development to standstill - Plaintiffs claimed that inappropriate conduct on part of city and defendants and misrepresentations by defendants to city caused city to negotiate and contract with defendants when it was obligated in law to negotiate and contract with them -- Plaintiffs claimed that defendants had been unjustly enriched at their expense -- Action was dismissed -- Trial judge held economic evidence indicated that it was far from certain there would be any enrichment of defendants at all from development -- Trial judge found there was no corresponding deprivation to plaintiffs, since city merely found their proposal less attractive than defendants' proposal -- Plaintiffs appealed -- Appeal dismissed -- No unjust enrichment occurred in favour of defendants to detriment of plaintiffs -- No justification for constructive trust in favour of plaintiffs existed. Damages --- Damages in contract -- Loss of profits consequent to breach -- Commercial losses City issued request for proposals (RFP) for residential development of land it owned -Two proposals received were made by plaintiffs and defendants -- City determined that defendants' proposal was most attractive and began negotiations with it -- Plaintiffs began public and private campaign to oppose negotiations and when negotiations were completed and land transferred to defendants, plaintiffs commenced unsuccessful actions against defendants and city claiming wording of RFP required city to negotiate and contract with plaintiffs and not defendants -- Plaintiffs also filed caveat against title to lands and registered pending litigation order against title, which brought development to standstill -- Defendants' counterclaim for declaration that plaintiffs had no interest in land and for general and exemplary damages for losses caused by plaintiffs hindering and delaying development of land was allowed -- Trial judge held defendants were entitled to declaration sought and to immediate discharge of caveat and pending litigation order from title -- Trial judge held plaintiffs' registration of caveat and pending litigation order after title had been transferred to club was unreasonable and actionable and any damages were recoverable -- Trial judge awarded defendants general damages of $35,000 having regard to interest costs and likelihood of increased development and construction costs by reason of two year delay and exemplary damages of $10,000 -Defendants appealed quantum of punitive damages -- Appeal dismissed -- Plaintiffs had no reasonable claim to interest in land to support filing of caveat and pending litigation order -- Assessment of damages by trial judge was somewhat arbitrary but not unreasonable -- Award of punitive damages was not so inordinately low as to warrant interference. Cases considered by Scott C.J.M.: Aitken v. Trainor, 2002 CarswellOnt 2421 (Ont. S.C.J.) -- referred to B.G. Schickedanz (Peel) Inc. v. Salna, 1997 CarswellOnt 2389, 14 C.P.C. (4th) 253 (Ont. Gen. Div.) -- considered Becker Developments Ltd. v. Alberta, 2 R.P.R. (3d) 23, 185 A.R. 20, 1996 CarswellAlta 317 (Alta. Master) -- considered Best Cleaners & Contractors Ltd. v. Canada, [1985] 2 F.C. 293, 58 N.R. 295, 1985 CarswellNat 45, 1985 CarswellNat 45F (Fed. C.A.) -- considered Boult Enterprises Ltd. v. Bissett (1985), 67 B.C.L.R. 273, [1986] 1 W.W.R. 385, 21 D.L.R. (4th) 730, 1985 CarswellBC 322 (B.C. C.A.) -- considered Cable Assembly Systems Ltd. v. Dufferin-Peel Roman Catholic Separate School Board, 2000 CarswellOnt 538, 1 C.L.R. (3d) 143 (Ont. S.C.J.) -- considered Cable Assembly Systems Ltd. v. Dufferin-Peel Roman Catholic Separate School Board, 2002 CarswellOnt 334, 155 O.A.C. 139, 13 C.L.R. (3d) 163 (Ont. C.A.) -- referred to Canada (Attorney General) v. Fontaine, 104 Man. R. (2d) 219, 1995 CarswellMan 542 (Man. Q.B.) -- considered Canada (Attorney General) v. Fontaine, 110 Man. R. (2d) 77, 118 W.A.C. 77, 1996 CarswellMan 79 (Man. C.A.) -- referred to Canada Square Corp. v. Versafood Services Ltd., 34 O.R. (2d) 250, 15 B.L.R. 89, 130 D.L.R. (3d) 205, 1981 CarswellOnt 124 (Ont. C.A.) -- considered Canadian Pacific Hotels Ltd. v. Bank of Montreal, 77 N.R. 161, [1987] 1 S.C.R. 711, 21 O.A.C. 321, 41 C.C.L.T. 1, 40 D.L.R. (4th) 385, 1987 CarswellOnt 760, 1987 CarswellOnt 962 (S.C.C.) -- referred to Captain Developments Ltd. v. Nu-West Group Ltd., 45 O.R. (2d) 213, 30 R.P.R. 190, 6 D.L.R. (4th) 179, 1 O.A.C. 132, 1984 CarswellOnt 570 (Ont. C.A.) -- considered Cedar Group Inc. v. Stelco Inc., 1995 CarswellOnt 3896 (Ont. Gen. Div.) -- considered Cedar Group Inc. v. Stelco Inc., 1996 CarswellOnt 4335 (Ont. C.A.) -- referred to Chinook Aggregates Ltd. v. Abbotsford (Municipal District) (1989), 40 B.C.L.R. (2d) 345, [1990] 1 W.W.R. 624, 35 C.L.R. 241, 1989 CarswellBC 203 (B.C. C.A.) -- considered Cimaroli v. Pugliese, 25 C.P.C. (2d) 10, 1987 CarswellOnt 555 (Ont. H.C.) -- considered ConAgra Ltd. v. Universal Grain Systems Inc., 1998 CarswellMan 333, 130 Man. R. (2d) 281 (Man. Master) -- referred to Coronation Insurance Co. v. Taku Air Transport Ltd. (1991), [1992] 1 W.W.R. 217, [1991] 3 S.C.R. 622, 61 B.C.L.R. (2d) 41, 85 D.L.R. (4th) 609, 131 N.R. 241, [1992] I.L.R. 1-2797, 4 C.C.L.I. (2d) 115, 6 B.C.A.C. 161, 13 W.A.C. 161, 1991 CarswellBC 270, [1992] R.R.A. 470, 1991 CarswellBC 926 (S.C.C.) -- considered Eastwalsh Homes Ltd. v. Anatal Development Corp., 29 C.P.C. (2d) 266, 1988 CarswellOnt 462 (Ont. H.C.) -- considered Empress Towers Ltd. v. Bank of Nova Scotia (1990), 50 B.C.L.R. (2d) 126, [1991] 1 W.W.R. 537, 14 R.P.R. (2d) 115, 48 B.L.R. 212, 73 D.L.R. (4th) 400, 1990 CarswellBC 226 (B.C. C.A.) -- referred to First Canadian Land Corp. v. Rosinante Holdings Ltd., 62 B.C.L.R. 262, 1985 CarswellBC 111 (B.C. C.A.) -- considered G.P.I. Greenfield Pioneer Inc. v. Moore, 2002 CarswellOnt 219, 47 R.P.R. (3d) 169, 58 O.R. (3d) 87, 155 O.A.C. 305 (Ont. C.A.) -- followed Griffin Steel Foundries Ltd. v. C.A.I.M.A.W. (1977), [1978] 1 W.W.R. 35, 5 C.P.C. 103, 80 D.L.R. (3d) 634, 1977 CarswellMan 103 (Man. C.A.) -- considered Hilltop Group Ltd. v. Katana, 2002 CarswellOnt 2058 (Ont. S.C.J.) -- considered Hornsby v. Bone (Trustee of), (sub nom. Hornsby v. Bone (Bankrupt)) 113 Sask. R. 1, 52 W.A.C. 1, 1993 CarswellSask 515 (Sask. C.A.) -- considered Hughes Land Co. v. Manitoba, 1998 CarswellMan 489, 167 D.L.R. (4th) 652, [1999] 3 W.W.R. 483, 131 Man. R. (2d) 202, 187 W.A.C. 202 (Man. C.A.) -- considered International Corona Resources Ltd. v. Lac Minerals Ltd., 6 R.P.R. (2d) 1, 44 B.L.R. 1, 35 E.T.R. 1, (sub nom. LAC Minerals Ltd. v. International Corona Resources Ltd.) 69 O.R. (2d) 287, (sub nom. LAC Minerals Ltd. v. International Corona Resources Ltd.) 61 D.L.R. (4th) 14, 101 N.R. 239, 36 O.A.C. 57, (sub nom. LAC Minerals Ltd. v. International Corona Resources Ltd.) [1989] 2 S.C.R. 574, (sub nom. LAC Minerals Ltd. v. International Corona Resources Ltd.) 26 C.P.R. (3d) 97, 1989 CarswellOnt 126, 1989 CarswellOnt 965 (S.C.C.) -- referred to J & P Goldfluss Ltd. v. 306569 Ontario Ltd., 4 C.P.C. 296, 1977 CarswellOnt 282 (Ont. H.C.) -- considered Labrador Airways Ltd. v. Canada Post Corp, 2001 CarswellNfld 30, 198 Nfld. & P.E.I.R. 116, 595 A.P.R. 116 (Nfld. T.D.) -- considered Lundy v. Powell, [1921] 3 W.W.R. 335, 14 Sask. L.R. 459, 60 D.L.R. 607, 1921 CarswellSask 152 (Sask. K.B.) -- considered L'Unita Development Corp. v. 505369 Ontario Ltd., 2001 CarswellOnt 3217, 44 R.P.R. (3d) 303 (Ont. S.C.J.) -- considered M.J.B. Enterprises Ltd. v. Defence Construction (1951) Ltd., 170 D.L.R. (4th) 577, 237 N.R. 334, 44 C.L.R. (2d) 163, 232 A.R. 360, 195 W.A.C. 360, 1999 CarswellAlta 301, 1999 CarswellAlta 302, [1999] 1 S.C.R. 619, [1999] 7 W.W.R. 681, 69 Alta. L.R. (3d) 341, 3 M.P.L.R. (3d) 165, 49 B.L.R. (2d) 1, 15 Const. L.J. 455, 2 T.C.L.R. 235 (S.C.C.) -considered Mannpar Enterprises Ltd. v. Canada, 173 D.L.R. (4th) 243, 121 B.C.A.C. 275, 198 W.A.C. 275, 1999 CarswellBC 768, 67 B.C.L.R. (3d) 64 (B.C. C.A.) -- considered Martel Building Ltd. v. R., 2000 SCC 60, 2000 CarswellNat 2678, 2000 CarswellNat 2679, 36 R.P.R. (3d) 175, (sub nom. Martel Building Ltd. v. Canada) 193 D.L.R. (4th) 1, (sub nom. Martel Building Ltd. v. Canada) 262 N.R. 285, 3 C.C.L.T. (3d) 1, 5 C.L.R. (3d) 161, 186 F.T.R. 231 (note), (sub nom. Martel Building Ltd. v. Canada) [2000] 2 S.C.R. 860 (S.C.C.) -- considered Meadowfield Ventures Inc. v. Kennedy, 1990 CarswellOnt 1858 (Ont. H.C.) -- considered Micro Carpets Ltd. v. De Souza Developments Ltd., 29 O.R. (2d) 77, 19 C.P.C. 118, 112 D.L.R. (3d) 178, 1980 CarswellOnt 442 (Ont. H.C.) -- considered Naylor Group Inc. v. Ellis-Don Construction Ltd., 17 B.L.R. (3d) 161, 2001 SCC 58, 2001 CarswellOnt 3340, 2001 CarswellOnt 3341, 10 C.L.R. (3d) 1, 55 O.R. (3d) 312 (headnote only), 204 D.L.R. (4th) 513, 277 N.R. 1, 153 O.A.C. 341, [2001] 2 S.C.R. 943 (S.C.C.) -considered Penvidic Contracting Co. v. International Nickel Co. (1975), [1976] 1 S.C.R. 267, 4 N.R. 1, 53 D.L.R. (3d) 748, 1975 CarswellOnt 299, 1975 CarswellOnt 299F (S.C.C.) -considered Powder Mountain Resorts Ltd. v. British Columbia, 1999 CarswellBC 1889, 47 C.L.R. (2d) 32, [1999] 11 W.W.R. 168 (B.C. S.C.) -- considered Powder Mountain Resorts Ltd. v. British Columbia, 2001 BCCA 619, 2001 CarswellBC 2225, 94 B.C.L.R. (3d) 14, [2001] 11 W.W.R. 488, 159 B.C.A.C. 14, 259 W.A.C. 14, 8 C.C.L.T. (3d) 170 (B.C. C.A.) -- considered R. v. Canamerican Auto Lease & Rental Ltd., (sub nom. Canamerican Auto Lease & Rental Ltd. v. Canada (Minister of Transport)) 77 N.R. 141, 37 D.L.R. (4th) 591, (sub nom. Canamerican Auto Lease & Rental Ltd. v. Canada) [1987] 3 F.C. 144, 1987 CarswellNat 174F, 1987 CarswellNat 174 (Fed. C.A.) -- referred to R. v. Ron Engineering & Construction (Eastern) Ltd., 13 B.L.R. 72, 119 D.L.R. (3d) 267, [1981] 1 S.C.R. 111, (sub nom. Ron Engineering & Construction (Eastern) Ltd. v. Ontario) 35 N.R. 40, 1981 CarswellOnt 109, 1981 CarswellOnt 602 (S.C.C.) -distinguished Ribic v. Weinstein (1982), 140 D.L.R. (3d) 258 (Ont. H.C.) -- considered Ross v. Acorn, 31 Sask. R. 87, 1984 CarswellSask 222 (Sask. Q.B.) -- considered Ross v. Acorn, 46 Sask. R. 69, 1986 CarswellSask 454 (Sask. C.A.) -- referred to Siemens Westinghouse Inc. v. Canada (Minister of Public Works & Government Services), 2000 CarswellNat 1398, 260 N.R. 367 (Fed. C.A.) -- considered Silver Lake Farms Inc. v. Saskatchewan, 2001 SKQB 515, 2001 CarswellSask 763, 212 Sask. R. 177, 46 R.P.R. (3d) 66 (Sask. Q.B.) -- referred to Soulos v. Korkontzilas, 212 N.R. 1, 1997 CarswellOnt 1489, 9 R.P.R. (3d) 1, 46 C.B.R. (3d) 1, 32 O.R. (3d) 716 (headnote only), 146 D.L.R. (4th) 214, 100 O.A.C. 241, 17 E.T.R. (2d) 89, [1997] 2 S.C.R. 217, 1997 CarswellOnt 1490 (S.C.C.) -- followed Texas Industries Ltd. v. Unicon Environmental Planning Ltd., 16 A.R. 234, 1978 CarswellAlta 404 (Alta. T.D.) -- considered Thompson v. Yockney, 25 W.L.R. 602, 23 Man. R. 571, 14 D.L.R. 332, 1913 CarswellMan 120 (Man. C.A.) -- considered Thorman v. Parnes, 73 O.R. (2d) 149, 11 R.P.R. (2d) 182, 1990 CarswellOnt 538 (Ont. H.C.) -- considered Tilden Rent-A-Car Co. v. Clendenning, 18 O.R. (2d) 601, 83 D.L.R. (3d) 400, 4 B.L.R. 50, 1978 CarswellOnt 125 (Ont. C.A.) -- considered United States v. Friedland, 1996 CarswellOnt 5566 (Ont. Gen. Div.) -- considered Vachon Construction Ltd. v. Cariboo (Regional District), 28 C.L.R. (2d) 145, 136 D.L.R. (4th) 307, 78 B.C.A.C. 43, 128 W.A.C. 43, 24 B.C.L.R. (3d) 379, 1996 CarswellBC 1466 (B.C. C.A.) -- considered Walford v. Miles, [1992] 2 A.C. 128 (U.K. H.L.) -- considered Wallace v. United Grain Growers Ltd., 152 D.L.R. (4th) 1, 219 N.R. 161, 1997 CarswellMan 455, 1997 CarswellMan 456, 123 Man. R. (2d) 1, 159 W.A.C. 1, 97 C.L.L.C. 210-029, [1997] 3 S.C.R. 701, 36 C.C.E.L. (2d) 1, 3 C.B.R. (4th) 1, [1999] 4 W.W.R. 86, [1997] L.V.I. 2889-1 (S.C.C.) -- considered Whiten v. Pilot Insurance Co., 2002 SCC 18, 2002 CarswellOnt 537, 2002 CarswellOnt 538, [2002] I.L.R. I-4048, 20 B.L.R. (3d) 165, 209 D.L.R. (4th) 257, 283 N.R. 1, 35 C.C.L.I. (3d) 1, 156 O.A.C. 201 (S.C.C.) -- referred to Winnipeg Paint & Glass Co. v. Lackman, [1923] 3 W.W.R. 361, 1923 CarswellMan 67 (Man. K.B.) -- considered Wong v. Di Grazia (1963), 386 P.2d 817 (U.S. Ala. S.C.) -- considered Wood v. Grand Valley Railway (1913), 30 O.L.R. 44, 16 D.L.R. 361 (Ont. C.A.) -- followed 11 Suntract Holdings Ltd. v. Chassis Service & Hydraulics Ltd., 36 O.R. (3d) 328, 1997 CarswellOnt 4804, 15 R.P.R. (3d) 201 (Ont. Gen. Div.) -- considered 830356 Ontario Inc. v. 156170 Canada Ltd. (March 14, 1995), Doc. 89556/95 (Ont. Gen. Div.) -- considered Statutes considered: Court of Queen's Bench Act, R.S.M. 1987, c. C280 s. 58(2) -- considered s. 58(4) -- referred to Real Property Act, R.S.M. 1988, c. R30 s. 160 -- referred to s. 195 -- considered Rules considered: Queen's Bench Rules, Man. Reg. 553/88 R. 20 -- referred to R. 39.01(6) -- considered R. 42.02(1) -- referred to APPEAL by plaintiffs from judgment reported at 2001 CarswellMan 442, 2001 MBQB 236, 22 M.P.L.R. (3d) 227, [2001] 11 W.W.R. 282, 11 C.L.R. (3d) 227, 21 B.L.R. (3d) 25 (Man. Q.B.), which dismissed plaintiffs' actions and allowed defendants' counterclaim; CROSS-APPEAL by defendants from quantum of punitive damages. Scott C.J.M.: 1 When the respondent, the City of Portage la Prairie (the city), issued a request for proposals (RFP) for the sale and development of 31.2 acres of city-owned land, did it constitute a tender document intended to create a binding contractual relationship between the city and the successful proposer, or was the process -- as found by the trial judge -- more in the nature of a "beauty contest," intended merely to be a non-binding invitation to enter into negotiations? This is the central question to be decided on this appeal. The Facts 2 The RFP, which was issued in March 1998, identified "an exciting opportunity" consisting of development of a combination of single- and multi-family dwellings on a large piece of land ideally located "just south of downtown Portage la Prairie . . . within the shortest time frame possible, to be sold and developed . . . ." The lands in question had been used as an agricultural research station for many years and was transferred to the city in early 1998. Mellco Developments' owners, who were experienced local real estate promoters and developers, lived adjacent to the subject property and had been anxious to acquire the property for many years. The lands were the last available large tract available for development within the limits of the city. There was evidence that efforts had been made by Mellco's principals to dissuade the federal government from selling the lands to the city. Once the sale was made to the city and it became known that the city was likely to proceed with its development initiative by way of a RFP, Mellco formed a partnership with Newton Enterprises (Newton), a well-known building materials supplier and contractor, for the purposes of responding. 3 The city initially retained consultants to assist in preparing the RFP package. To this end, they developed weighting criteria "for internal use only" to assist city council in evaluating the anticipated responses to the RFP. Prior to delivery of the RFP, council decided not to utilize the weighting criteria developed by the consultant, preferring more broadly based considerations. 4 The RFP was issued in March 1998. One of the reasons that the city proceeded by way of proposal was a concern that the property should develop on a timely basis rather than simply being held as inventory by the successful proposer. Since the city had just acquired the land and was looking for new ideas and concepts, it wanted to control development of the lands beyond what would ordinarily be the case in a land development relationship. The city officials were well aware of the differences between a RFP and a call for tenders. 5 The RFP was an extensive document containing a description of the "development opportunity," information about the subject property, terms and conditions of the RFP, and two appendices including an offer to purchase form. The stated intent of the city was to "expedite the sale and development of these lands within the shortest time frame possible." The "successful proponent" was to initiate a plan to permit single-family or multiple-family dwellings on the land, including "townhouses but not walk-up apartments." The RFP called for "concept plans for new residential areas" and stated that a re-zoning of the subject lands was required. 6 Paragraph 4.2 provided inter alia that: • "This is an invitation for proposals and not a tender call." The first internal draft of the RFP (not seen by the proposers), unlike the final version given to the proposers, contained a provision that the "highest, or in fact any proposal, will not necessarily be accepted by the vendor." • The city would negotiate with the applicant that presented the "most attractive proposal." In the event the sale transaction did not close, the city would then negotiate with the next most attractive applicant. • The proposals were to remain open for a minimum period of 90 days and were to close within 90 days of written acceptance of the offer. • Upon closing, a development agreement was to be completed and registered against the title to the property. The agreement was to be entered into "to the satisfaction of the City of Portage la Prairie outlining development conditions." • "City of Portage la Prairie Council shall have final authority on all matters relating to the development of the subject property." 7 Paragraph 4.1, entitled "The Request for Proposals," stated in subsec. 3: Proposals must include and will be evaluated based on the following: • the purchase price along with any conditions attached thereto such as partial bids or time payment period; • the Proponent's previous land assembly and land development experience, including a list describing these development projects and their gross value wherein the Proponent has been the Principal; • a conceptual subdivision design involving the subject property, complete with proposed residential land uses, number and size of lots, servicing requirements, on-site amenities (e.g. parks, open space, linkage trails), and a development phasing strategy, if appropriate; • the requisite security deposit; • a completed Proponent Declaration Form provided in Appendix A; and • a completed Offer To Purchase Form provided in Appendix B. 8 Although a significant number of RFP packages were sent out by the city, only two proposals were received; one from Lions (for convenience, "Lions" will refer to both Lions Park Housing Inc. and Lions Club of Portage la Prairie) and one from the plaintiffs. 9 There can be no doubt that the plaintiffs endeavoured to comply with the letter of the RFP. They proposed a "gated adult community which will focus on the growing demand for this type of lifestyle," and included a conceptual design for the subject property. The plaintiffs made an unconditional offer to pay the proposed purchase price ($316,000) in full by August 7, 1998. They concluded their proposal by stating that they "hoped that this proposal will be the one the city chooses." There was evidence that the plaintiffs' proposal package would have been awarded 97 out of 99 points, given a reasonable application of the internal weighting criteria. The city described the plaintiffs' proposal as "very well done." 10 The Lions' proposal was much less precise. Bill Coady, a real estate developer, essentially prepared the document for Lions. It included an assisted-living centre and a clubhouse, and was based on an innovative non-profit, life-lease housing concept. Lions offered to pay $425,000 for the property. In a number of respects the Lions' proposal deviated from the requirements of the RFP. Closing was made conditional on a number of conditions, including re-zoning of the property, the existence of sufficient pre-leases to indicate the feasibility of the project, and on the ability to delay closing of the sale for up to 210 days after acceptance. Lions provided an uncertified cheque which, upon being presented for payment some time later (October 9, 1998), was dishonoured and had to be replaced. Other technical requirements of the RFP were not met. For example, the Lions' design did not comply with the requirements of an addendum to the RFP concerning the minimum lot width and servicing requirements were not discussed. 11 At trial, the plaintiffs claimed that the Lions' RFP contained a misrepresentation concerning market demand for the Lions' concept in that the true public interest was significantly less than that required to demonstrate the economic viability of the innovative concept contained in the proposal. Further, given the arrangements made by Lions with architects and an experienced general contractor to construct the project on their behalf, the Lions' proposal was not in reality the "non-profit approach" extolled by Lions. 12 The two proposals were considered by the city without the assistance of consultants. In an internal document, the city observed: "The primary difference between the two proposals was total cash value for the lands and overall development concept." Note was made of Lions' innovative concept. The city manager and the city director of economic and community development separately evaluated the proposals. Both attempted to use the weighting criteria initially contemplated by the consultant, but found that they did not assist. The director of economic and community development testified that the Lions' proposal, "Certainly had more detail in terms of what they were prepared to propose and was very well done." The city manager considered the plaintiffs' proposal to be vague and lacking in detail. 13 The city decided to accept the Lions' proposal as being "the most attractive to the city." In its letter to the plaintiffs, the city stated that: . . . should a sales transaction not occur, Council might commence negotiations with the next most attractive proposals and/or reject all proposals. Your offer therefore remains open until 4:00 p.m. August 06, 1998 as submitted. 14 Following notification that Lions' proposal had been accepted, the plaintiffs' signed offer to purchase and certified deposit cheque were retained by the city. When the plaintiffs complained about the decision to negotiate with Lions, the city replied on June 2, 1998: . . . should the sales transaction not close with the lead proponent, the City will contact the next most attractive proposal for negotiation. . . . As previously indicated to you, your proposal remains open to the City for 90 days from the date of receipt . . . . 15 The city signed an agreement with Lions on June 15, 1998. The plaintiffs' deposit cheque was returned on August 6, 1998. 16 Matters did not end there. The plaintiffs asserted that Lions continued to misrepresent the number of interested applicants in the pre-lease concept which was a central feature of the Lions' proposal. The city and Lions presented evidence that the plaintiffs, after September 1998, engaged in a concerted campaign to scuttle the Lions' project, which included an attempt to prevent the zoning changes that were required in order for the Lions' project to proceed. 17 Eventually, the city agreed to Lions' request that closing occur only upon re-zoning, which did not take place until April 1999. On September 20, 1999, the plaintiffs offered to purchase the lands for the sum of $425,000, equal to the price offered in the Lions' proposal. When this was not accepted, the plaintiffs sued. Only after the plaintiffs commenced proceedings was the sale between the city and Lions completed. Lions paid $425,000 to the city on January 6, 2000. 18 When the city transferred title to Lions on February 24, 2000, the plaintiffs filed a caveat against the title to the lands. When that was challenged, the plaintiffs commenced a second action against Lions claiming a constructive trust of the lands and filed a pending litigation order (PLO). The Lions' motion to set aside the PLO was dismissed by Mykle J. on May 3, 2000. 19 The lengthy trial commenced on October 30, 2000, and was completed on December 3, 2000. At the time the trial commenced a number of essential contractual arrangements with Lions, such as a development agreement and approved plan of subdivision, had not yet been completed. 20 In his reasons for decision delivered September 17, 2001, Clearwater J. dismissed the plaintiffs' claim with costs, and granted judgment in favour of Lions for $35,000 in compensatory damages and $10,000 in exemplary damages. 21 The plaintiffs' position at trial (and subsequently before this court) was that the Lions' proposal should not have been considered by the city given the magnitude of the non-compliance in the Lions' proposal, and that the city was legally obliged to accept the plaintiffs' conforming bid as mandated by the terms of the RFP itself. Alternatively, had the weighting criteria as set forth in para. 4.1-3 of the RFP been used, the plaintiffs' proposal was clearly the better of the two and should have been accepted. It was asserted that the city, in failing to adhere strictly to the requirements of para. 4.1-3 of the RFP, applied standards as to "detail and concept" that had not been communicated to the proposors and breached an important term of the RFP. 22 An alternative claim was that Lions breached fiduciary duties to the plaintiffs and therefore held the lands in a constructive trust for them. 23 As to the first issue, the trial judge held (at para. 26): . . . that the plaintiffs' claims are premised (and have been premised since their opening salvo to City council following initial consideration of the only two responses received by the City to its RFP) on an inappropriate and incorrect interpretation of the RFP. 24 Recognizing the distinction between a formal tendering document and a request for proposal, he concluded that there were good and valid reasons for the city's desire to use a RFP. He accepted "Mr. Lyle's evidence that the City honestly wanted to obtain as many different concepts and ideas as it could for the development of this land" (at para. 28), and found that (ibid.): . . . new concepts or ideas for this parcel of land, together with timely development of the lands and obtaining a reasonable price (but not necessarily the highest possible price in the marketplace) were important to the City. He went on to point out (at para. 30): . . . this RFP is explicitly not a simple call for a tender or a bid (notwithstanding the Nickarts' [two principal officers and directors of Mellco] opinions to the contrary). At the every [sic] least, this clause should have immediately alerted any reasonably experienced developer and his advisers that the City is not issuing a tender call. The plaintiffs simply ignore it. 25 He accepted the city's testimony in this respect. Furthermore, he observed (at para. 31): It never was (and is not) the intention of the City to sell this land or any part of it unless and until it received an acceptable "concept" or "proposal" and, most importantly, completed negotiation and finalization of a development agreement on terms satisfactory to it (not necessarily satisfactory to any developer or proponent). . . . . It would be absolutely wrong for the court to impose the terms of a development agreement on the City and any developer; . . . . 26 In the result, he concluded that the city was entitled to prefer the proposal of Lions. All the plaintiffs were entitled to (at para. 32(1)): . . . was to have the City consider their proposal fairly and, in that regard, I am satisfied that the City gave fair consideration to both proposals in coming to its conclusion that the Lions' proposal was the most attractive. 27 Since no enforceable contracts were formed by the RFP (at para. 32(2)): . . . it is immaterial as to whether either or both of the proposals were "compliant" or "non-compliant" with the express or implied terms and conditions of the RFP . . . . 28 If he had been obliged to apply a strict legal interpretation of the RFP as the plaintiffs urged, he was of the opinion that neither proposal was totally compliant. He argued that the RFP process adopted in this instance was in essence a "beauty contest" and concluded that while the RFP "is clearly not worded as well as it may have been," the city "at best, [is] obliged to enter into good faith negotiations" (ibid.). In this regard (ibid.): The plaintiffs' evidence does not come close to establishing that their proposal did not receive fair consideration either by the City staff or by the City council. Nor can they say they did not receive "a fair hearing." If anything, they received an exhaustive hearing (some might say overly exhaustive). 29 As to the imposition of a constructive trust, he concluded that Lions had not been unjustly enriched to the detriment of the plaintiffs. Applying the decision of the Supreme Court in Soulos v. Korkontzilas, [1997] 2 S.C.R. 217 (S.C.C.), he was not persuaded that the plaintiffs were entitled to the imposition of a constructive trust "as a response to a wrongful acquisition of property" (at para. 32(4)). 30 He accepted the evidence of the principal witnesses of Lions as being accurate and credible, while finding that the plaintiffs' evidence (at para. 51): . . . falls far short of establishing a "sham" [between Lions and the city]; it also falls far short of establishing any unfair treatment or any improper collusion between the City and the Lions which resulted in the Lions buying the lands to the exclusion of the plaintiffs. 31 Clearwater J. made a provisional award of damages in favour of the plaintiffs (at para. 47): Having concluded that $225,000 is a realistic assessment of the plaintiffs' loss of profit if it had purchased these lands in 1998 for $316,000 as proposed, the value of the plaintiffs' lost opportunity by reason of the City's failing to negotiate, particularly in light of the plaintiffs' views on the economic viability of the project that the City wanted on these lands, requires a significant discount. I would assess this category of damages at $50,000. 32 As to the Lions' counterclaim, he "reluctantly" held (at para. 55): . . . notwithstanding the aggressive (and sometimes misleading) conduct and actions of the Nickarts (Mellco) in publicly and privately opposing and effectively delaying the necessary amendments to the City's by-laws, that this conduct and the resulting delay is not actionable. 33 However, he concluded that registrations of the caveat and the PLO were "not 'reasonable"' (see sec. 58(4) of The Court of Queen's Bench Act, C.C.S.M., c. C280), that the plaintiffs' conduct in encumbering the Lions' title had "caused unnecessary loss and expense to the Lions" (at para. 56). Doing the best he could (at para. 60): In the absence of better evidence as to specific increased costs attributable to the wrongful registration of the caveat and the pending litigation order, the court must approach the assessment of damages conservatively. I would award general damages to the Lions and the Lions Club, having regard to interest costs and the likelihood of increased development and construction costs by reason of the passage of time (at least two years delay), at $35,000. 34 He found that the plaintiffs' conduct in registering the caveat and PLO was "deliberate, oppressive, and high-handed" (at para. 61) and assessed punitive damages at $10,000. 35 The plaintiffs appeal and Lions cross-appeals for an increase in the award of exemplary or punitive damages. Summary Of Legal Principles 36 The essential principles to be applied if the RFP is a formal tender document cannot be doubted. In R. v. Ron Engineering & Construction (Eastern) Ltd., [1981] 1 S.C.R. 111 (S.C.C.), the Supreme Court introduced the concept of a "Contract A/Contract B structure" to tenders. Simply stated, Ron Engineering & Construction (Eastern) Ltd. decided that when issuing a call for tenders the offeror makes an offer to all potential bidders. Contract A (the initial contract) comes into being upon each bidder's submission of a tender in conformity with the call for tenders. Contract A is distinguished from the construction contract itself, Contract B, which is entered into once the tender is accepted. Failure of either party to then enter into Contract B will be treated as an actionable breach of Contract A. 37 As explained in M.J.B. Enterprises Ltd. v. Defence Construction (1951) Ltd., [1999] 1 S.C.R. 619 (S.C.C.) (at para. 19): What is important, therefore, is that the submission of a tender in response to an invitation to tender may give rise to contractual obligations, quite apart from the obligations associated with the construction contract to be entered into upon the acceptance of a tender, depending upon whether the parties intend to initiate contractual relations by the submission of a bid. If such a contract arises, its terms are governed by the terms and conditions of the tender call. 38 The labels or names attached to the documents are not the determining factor, rather it is the substance and terms of the contract that govern. See Hughes Land Co. v. Manitoba (1998), 131 Man. R. (2d) 202 (Man. C.A.). One of the best ways to protect the integrity of the formal bidding process is to insist on conformity with the mandatory requirements of the call for tenders. See Siemens Westinghouse Inc. v. Canada (Minister of Public Works & Government Services) (2000), 260 N.R. 367 (Fed. C.A.). 39 Finally, as also stated in Hughes Land Co. (at para. 16): "It can now be said with confidence, as a matter of law, that government will be held to a duty of fairness in the tendering process" (emphasis added). Argument In This Court 40 As at trial, the plaintiffs' "combined" argument was that the city breached its contract by considering the Lions' non-complying proposal at all, then compounded the error by failing to evaluate the proposals only in accordance with the RFP criteria, para. 4.1-3 (set forth in para. 7 of these reasons). The failure of the Lions' "offer" to meet the pre-closing conditions went beyond mere irregularities and resulted in Lions obtaining a significant commercial advantage. The city was in error in abandoning the conditions in para. 4.3-1 and treating it all as just a "beauty contest." The city was bound to accept the best compliant proposal assessed under the criteria of 4.1-3 alone and was not entitled to treat Lions as a "special case" (for example, by permitting Lions to close only after zoning had been achieved), thus giving Lions enormous commercial advantage. 41 The plaintiffs fully complied, they say, and Lions did not. 42 The trial judge was also in error in equating a minor case of non- compliance by the plaintiffs (relating to lot sizes) with the multiple and serious examples of non-compliance by Lions. When the non-compliance in a tender is minor, and non-essential, it is permissible: . . . to leave for determination during the course of performance of a contract insignificant details necessarily incidental to the carrying out of the work involved. The fact that the parties fail to reach agreement on a severable and collateral aspect of their negotiations will not preclude enforcement of a concluded agreement with respect to transfer of an interest in property. [7 C.E.D. (Western) (3d) Basis of Contract, § 8] 43 The plaintiffs rely on Canada Square Corp. v. Versafood Services Ltd. (1981), 130 D.L.R. (3d) 205 (Ont. C.A.), where the court (at p. 224) adopted with approval the American decision of Wong v. Di Grazia, 386 P.2d 817 (U.S. Ala. S.C. 1963) at 827: A minor possible ground of disagreement in an otherwise complete agreement will not render the agreement uncertain. "Where the matters left for future agreement are unessential, each party will be forced to accept a reasonable determination of the unsettled point . . . " (City of Los Angeles v. Superior Court (1959) 51 Cal.2d 423, 433, [333 P.2d 745].) 44 To similar effect is Boult Enterprises Ltd. v. Bissett (1985), 21 D.L.R. (4th) 730 (B.C. C.A.) at 735, where Esson J.A. suggests that an unresolved matter that is not vital to an arrangement may, if necessary, be severed from an otherwise valid and enforceable agreement. 45 Finally, say the plaintiffs, the trial judge erred in concluding that because further negotiations were required, no enforceable contract could exist. It is now recognized, they submit, that there is a general duty to negotiate fairly in both the tendering or proposal process. In Cable Assembly Systems Ltd. v. Dufferin-Peel Roman Catholic Separate School Board (2000), 1 C.L.R. (3d) 143 (Ont. S.C.J.) (confirmed on appeal at Cable Assembly Systems Ltd. v. Dufferin-Peel Roman Catholic Separate School Board, [2002] O.J. No. 379 (Ont. C.A.)), Kent J. held (at para. 6): In the present case, the submission of a proposal on the terms and conditions set out in the RFP left alive the possibility of negotiation as can be seen in the definition of proposal set out above. There is also case law support for the proposition that negotiation can occur after proposals have been received in response to a request. See Socanav Inc. v. Northwest Territories (Commissioner), [1993] N.W.T.R. 369 (N.W.T.S.C.), at 375. It cannot, therefore, be said that either Cable or the Board intended that the submission of a proposal or bid would constitute either the initiation of contractual relations or the creation of contractual obligations [nonetheless] the circumstances were not such that Cable was entitled to more than serious consideration of its bid and fair treatment in subsequent negotiations. Strong emphasis was placed on Empress Towers Ltd. v. Bank of Nova Scotia (1990), 73 D.L.R. (4th) 400 (B.C. C.A.). 46 At trial, the city manager acknowledged that in evaluating the proposals he looked at "price, concept and detail," thereafter arriving at a "personal . . . subjective opinion" as to what was best for the city. In effect, it was argued, the city manager had substituted his own view of the appropriate criteria and weighting, and had followed neither the requirements of para. 4.1-3 of the RFP nor the internal weighting criteria. In short, the city had not dealt with the plaintiffs in good faith. Constructive Trust 47 Not only did the city fail to bargain in good faith, there were misrepresentations by Lions which make it fair and appropriate, it is argued, that a constructive trust be declared in their favour over the lands now owned by Lions. 48 Strong reliance is placed upon the following remarks of McLachlin J., as she then was, in Soulos v. Korkontzilas (at para. 34): . . . a constructive trust may be imposed where good conscience so requires. The inquiry into good conscience is informed by the situations where constructive trusts have been recognized in the past. It is also informed by the dual reasons for which constructive trusts have traditionally been imposed: to do justice between the parties and to maintain the integrity of institutions dependent on trust-like relationships. 49 The maintenance of the integrity of market-driven institutions is a legitimate objective of constructive trusts. The defendants (in particular Lions) owed fiduciary duties to the plaintiffs which were breached, entitling the plaintiffs to a declaration of a constructive trust. All four criteria for the imposition of a constructive trust as enunciated in Soulos v. Korkontzilas are met on the facts of this case (at para. 45): (1) The defendant must have been under an equitable obligation, that is, an obligation of the type that courts of equity have enforced, in relation to the activities giving rise to the assets in his hands; (2) The assets in the hands of the defendant must be shown to have resulted from deemed or actual agency activities of the defendant in breach of his equitable obligation to the plaintiff; (3) The plaintiff must show a legitimate reason for seeking a proprietary remedy, either personal or related to the need to ensure that others like the defendant remain faithful to their duties and; (4) There must be no factors which would render imposition of a constructive trust unjust in all the circumstances of the case; e.g., the interests of intervening creditors must be protected. 50 It would not be unjust to order the lands conveyed to the plaintiffs since Lions has not invested much money to get the project going and fee payments to the city have been minimal. 51 The plaintiffs submit that the trial judge made arbitrary decisions with respect to the plaintiffs' damages. They do not quarrel with the initial assessment of damages in favour of the plaintiffs in the amount of $225,000, but say there is no evidence to support the "arbitrary reduction" to $50,000 as concluded by the trial judge. 52 As for the amount of damages in favour of Lions, given Mykle J.'s earlier decision not to set aside the PLO -- and the essential finding that the filing of the caveat and the PLO were not unreasonable -- Clearwater J.'s decision amounts to a collateral attack on Mykle J.'s order. There is no justification for the award of exemplary damages especially given the circumstance that Mykle J. did not see fit to set aside the PLO. The City's Argument 53 Counsel for the city agrees that what is important is the substance and terms of the document and not the labels used. Applying this principle, the RFP was clearly only a concept document. This is made plain by the wording of the RFP, especially the unequivocal statement "[T]his is an invitation for proposals and not a tender call." It is well known in the industry that there is a real difference between a RFP and a tender call. As testified to by the city's representatives, the city deliberately left it open to be able to consider all options to create an attractive and unique project. 54 It was always the intention of the city to maintain a complete and unfettered discretion to determine what was "most attractive" to it. As correctly found by the trial judge, it is submitted there were many important details that needed to be negotiated with the successful applicant in the "beauty contest" before a development agreement could be entered into. At most the RFP represented an opportunity for the plaintiffs and others to submit a proposal which, if found to be "attractive," would provide the ability to attempt to negotiate a development agreement. The trial judge was absolutely right when he concluded that it would be wrong to impose the terms of the final agreement (contract B), given the many important details yet to be agreed upon. 55 There are a number of recent cases that highlight the distinction between a true request for proposals and an invitation for tender. See, for example, Powder Mountain Resorts Ltd. v. British Columbia, [1999] 11 W.W.R. 168 (B.C. S.C.); aff'd Powder Mountain Resorts Ltd. v. British Columbia , 2001 BCCA 619 (B.C. C.A.). 56 Particularly apt for our purposes is the following quotation from Tysoe J. at trial (at para. 112): The invitation for proposals appears to have been an invitation to negotiate or, in other words, an invitation to treat. It appears unlikely that the intention of the parties was that a submission of a proposal would initiate contractual relations between the parties. It appears more likely that the intention was to initiate negotiations which, if mutually satisfactory, would lead to contractual relations. 57 Newbury J.A., in affirming the trial judge's conclusions, noted (at para. 72): There was nothing approaching an invitation to tender, or a tender for work or materials of a certain scope, that could have given rise to a contract. In the absence of a contract, no free-standing enforceable duty of fairness arises. 58 The law is correctly summarized in the following passage from G.H.L. Fridman, Q.C., The Law of Contract in Canada, 4th ed. (Scarborough: Carswell, 1999) (at p. 42): Although Ron Engineering is firmly ensconced, it is also clear that not every invitation to submit tenders will be capable of producing a contract when a tender is submitted. That case did not emasculate the law of contract so as to create in every tendering process a preliminary or initial contract. The effect of such a submission will depend on the precise language and intention of the invitation to tender . . . . 59 Where a request for proposals expressly leaves open the possibility of further negotiation, a court may well conclude: It cannot, therefore, be said that either Cable or the Board intended that the submission of a proposal or bid would constitute either the initiation of contractual relations or the creation of contractual obligations. [Cable Assembly Systems, at 1 C.L.R. (3d) 143, para. 6] 60 While agreeing that the courts may in certain circumstances infer an obligation to bargain in good faith, Canadian courts have consistently adopted the position that the law will not enforce a contract to enter into a contract or an agreement to negotiate. 61 See the apt comment of Lord Ackner in Walford v. Miles, [1992] 2 A.C. 128 (U.K. H.L.) at 138) (referred to with approval in Cedar Group Inc. v. Stelco Inc., [1995] O.J. No. 3998 (Ont. Gen. Div.) at para. 4; aff'd (Ont. C.A.)): The reason why an agreement to negotiate, like an agreement to agree, is unenforceable, is simply because it lacks the necessary certainty. The same does not apply to an agreement to use best endeavours. . . . . How can a court be expected to decide whether, subjectively, a proper reason existed for the termination of negotiations? The answer suggested depends upon whether the negotiations have been determined "in good faith." However the concept of a duty to carry on negotiations in good faith is inherently repugnant to the adversarial position of the parties when involved in negotiations. . . . . -- how is a vendor ever to know that he is entitled to withdraw from further negotiations? How is the court to police such an "agreement"? A duty to negotiate in good faith is as unworkable in practice as it is inherently inconsistent with the position of a negotiating party. . . . . Accordingly a bare agreement to negotiate has no legal content. (emphasis in the original) 62 As to the existence of a constructive trust, what in reality the plaintiffs are seeking is the remedy of specific performance for a contract that does not exist. See Becker Developments Ltd. v. Alberta, [1996] A.J. No. 341 (Alta. Master). 63 Finally, the city argues, the trial judge did not err in the assessment of damages. Lions' Argument 64 Lions' submission was confined to the issues that particularly impact upon it. 65 It is argued that Clearwater J. correctly interpreted the decision of the Supreme Court in Soulos v. Korkontzilas and rightly concluded that the imposition of a constructive trust was unwarranted on the facts of this case, given the conduct of the plaintiffs, particularly with respect to the filing of the caveat and PLO. 66 There is no authority that supports the proposition that there is a duty between competing tenderers, and no public policy reason to create one. Lions has strong findings of fact and credibility by the trial judge in their favour. 67 As to the filing of the caveat and PLO, the caveat contained misrepresentations as to the amount of the claim, the claim to an interest in lands and the allegation that there was a contract between the city and the plaintiffs. The registration of a caveat or PLO is a significant event, which in this case was done as a short-cut attempt to avoid the proper procedure, namely, an application for an interim injunction that would have required the giving of an undertaking as to damages, and perhaps the posting of security. The recent Ontario Court of Appeal decision of G.P.I. Greenfield Pioneer Inc. v. Moore, [2002] O.J. No. 282 (Ont. C.A.), makes it clear that the decision of Mykle J. not to set aside the PLO on a preliminary motion is of no consequence at trial. The caveat and PLO, we are urged, were false and ought to be set aside. 68 As to damages, Lions argues that the quantum of compensatory damages in its favour is entirely reasonable and represents approximately four percent of the money of the Lions that has been effectively tied up since the litigation commenced. As to punitive damages, relying on the very recent decision in Whiten v. Pilot Insurance Co., 2002 SCC 18 (S.C.C.), the sum of $10,000 is an unduly minimal expression of punitive damages. It simply represents a small cost to the plaintiffs of conducting business in an entirely reprehensible and improper way. It ought to be increased to the sum of $50,000. Decision Of The Court Was the RFP a Binding Tender Document Obliging the City to Enter Into a Development Agreement with the Plaintiffs? 69 It is fundamental to appreciate that the normal principles of contractual intention apply in determining the answer to this question. 70 In addition to the quotation earlier referred to in M.J.B. Enterprises Ltd., Iacobucci J. summarized the principle in this way (at paras. 22-23): Both parties in the present appeal agree with the Contract A/Contract B analysis outlined in Ron Engineering and that the terms of Contract A, if any, are to be determined through an examination of the terms and conditions of the tender call. . . . . As I have already mentioned, whether or not Contract A arose depends upon whether the parties intended to initiate contractual relations by the submission of a bid in response to the invitation to tender. 71 More recently the point was touched upon again in Naylor Group Inc. v. Ellis-Don Construction Ltd., [2001] 2 S.C.R. 943, 2001 SCC 58 (S.C.C.), where Binnie J., writing for the court, wrote (at para. 35): The Court took the opportunity on that occasion [in M.J.B. Enterprises] to affirm that Contract A does not automatically spring into existence upon the making of a tender, and if it does, its terms must be ascertained as with any other contract, and not be derived from some abstract legal paradigm. 72 This crucial distinction is plainly drawn by Paul Sandori and William M. Pigott, Bidding and Tendering: What is the Law?, 2nd ed. (Toronto: Butterworths, 2001) (at p. 239): The owner that wants submissions from interested parties but does not wish to create Contract A, may choose to issue a request for proposals (RFP). Properly drawn, an [sic] RFP asks parties for expressions of interest and sets out the owner's intention to consider those expressions of interest and then to undertake negotiations with one or more parties whose proposal(s) appeal to the owner. 73 When these principles are applied to the facts before us, I have no difficulty in concluding that the RFP was not intended to create a binding contractual relationship between the city and the "winning bidder." A simple examination of para. 4.2 of the RFP (see para. 6 of these reasons) provides many examples of the city's intention to negotiate rather than to enter into a binding agreement with the successful proponent. This case is akin to the decisions in Powder Mountain Resorts Ltd. v. British Columbia, Cable Assembly Systems Ltd. v. Dufferin-Peel Roman Catholic Separate School Board, and Silver Lake Farms Inc. v. Saskatchewan (2001), 46 R.P.R. (3d) 66, 2001 SKQB 515 (Sask. Q.B.). The fact that the proposal reads in para. 4.2-1 that "[T]his is an invitation for proposals and not a tender call" is not a statement made in isolation. It is but one of the many factors militating against the applicability ofRon Engineering & Construction (Eastern) Ltd. on the facts before us. 74 As we have seen, where the final terms of the contract are contained in the bid (i.e. there is no need for negotiation), courts will readily find a valid tender and not a mere invitation to treat. See, for example, R. v. Canamerican Auto Lease & Rental Ltd. (1987), 37 D.L.R. (4th) 591 (Fed. C.A.). But these are not the facts before us. It is not possible to identify the terms of any Contract B. As set forth in the RFP, subsequent discussions and negotiations were required respecting fundamental detail. Cases such as this do not fall to be decided under the law of tenders as articulated in Ron Engineering & Construction (Eastern) Ltd. 75 It is my conclusion that Clearwater J. was entirely correct in his decision as to liability. Implied Terms 76 In M.J.B. Enterprises Ltd., the Supreme Court, on the facts of that case, found there to be an "implied term" not to accept non-compliant bids. Should such a term be implied in this case, as implicitly argued by the plaintiffs? In M.J.B. Enterprises Ltd., Iacobucci J., relying on Canadian Pacific Hotels Ltd. v. Bank of Montreal, [1987] 1 S.C.R. 711 (S.C.C.), and based on the presumed intention of the parties, found there to be an implied term that only compliant tenders would be accepted, the focus being on the intentions of the actual parties as opposed to the intention of "reasonable parties." 77 In coming to his conclusion on the facts before him, Iacobucci J., at para. 38, stressed the importance "that the respondent did not invite negotiations over the terms of either Contract A or Contract B"; indeed, the instructions to tenderers made it clear that the bidder was "not at liberty to negotiate over the terms of the tender documents" (at para. 40). Because of this, "it is reasonable to infer that the respondent would only consider valid tenders" (ibid.). These, of course, are the very opposite of the facts before us where negotiations formed the backbone of the process the city envisioned when they initiated the RFP process. 78 It must be recognized, of course, that in a formal tendering process it would be a rare case in which a term as to compliant bids would not be implied, depending again on the presumed intention of the parties. See Martel Building Ltd. v. R., [2000] 2 S.C.R. 860, 2000 SCC 60 (S.C.C.). But, there is no basis in circumstances such as those before us, for implying a term to reject non-compliant bids in the face of contemplated negotiations. See Labrador Airways Ltd. v. Canada Post Corp, [2001] N.J. No. 28 (Nfld. T.D.). Whether Lions' or the plaintiffs' proposals were compliant or not is not decisive. The contemplated negotiations gave ample opportunity to resolve any difficulties inherent in the initial proposal so as to achieve the city's goal of accepting the "most attractive proposal." Fairness And Good Faith 79 Can a bidding process that is something less than one intended to involve the formation of Contracts A and B invoke the obligation of fair bargaining in good faith that is now firmly established in formal tendering cases? 80 I agree with counsel for the plaintiffs that the question of the duty to negotiate in good faith with respect to bids (be they a tender or proposal), is a form of continuum. At one end are the formal tender cases invoking the principles of Ron Engineering & Construction (Eastern) Ltd. At the other end are cases where, for example, an owner requests a simple quote. There is obviously a lot of territory between these two extremes. The fact situation before us falls somewhere in between the two extremes. On the one hand, there is a detailed request for proposals mandating that they must contain a security deposit and remain open for a length of time. Conversely, the RFP does not create Contracts A or B and envisions continuing negotiations with the "lead proponent" that submits the most "attractive proposal." 81 Within the continuum, in the instant case there was, in my opinion, an obligation on the part of the city to conduct itself fairly and in good faith. Without some fairness in the system proponents could incur significant expenses in preparing futile bids which could ultimately lead to a negation of the process. In circumstances such as those before us, there must be enough fairness and equality in the procedures to ensure its integrity and openness. 82 As has been earlier noted, in a formal tendering context there is now ample authority for the proposition that bidders should be treated fairly, equitably, and in good faith. Conveniently the cases are reviewed in Martel Building Ltd. per Iacobucci and Major JJ. Implying such a term is justified based on the presumed intentions of the parties. As noted by Peter Devonshire, Contractual Obligations in the Pre-Award Phase of Public Tendering, (1988), 36:2 Osgoode Hall L.J. 203, it may be that the content of fairness will simply be defined by the parties' reasonable expectations. See as well International Corona Resources Ltd. v. Lac Minerals Ltd., [1989] 2 S.C.R. 574 (S.C.C.). 83 In the formal tendering process these expectations include the obligation of the owner to disclose any preference or criterion that may affect selection. See Chinook Aggregates Ltd. v. Abbotsford (Municipal District) (1989), 40 B.C.L.R. (2d) 345 (B.C. C.A.), to accept only conforming bids and to refrain from the wording of a form of contract that is materially different from Contract B. See Vachon Construction Ltd. v. Cariboo (Regional District) (1996), 24 B.C.L.R. (3d) 379 (B.C. C.A.) and Best Cleaners & Contractors Ltd. v. Canada, [1985] 2 F.C. 293 (Fed. C.A.). 84 But this is not a formal tendering situation. As we have seen, the principles of fairness and good faith are not determined in a vacuum, but rather are implied based on the intentions and expectations of the parties. In a Ron Engineering & Construction (Eastern) Ltd. type of tendering process, the requirement of good faith and fairness is a term that is implied into Contract A. But there is no Contract A in this case. It is merely a request for proposals opening up a process of negotiation. Even if the absence of a Contract A is not an obstacle to finding some duty of good faith and fairness, I am not at all persuaded that the plaintiffs were treated unfairly or that the city acted in bad faith. Even if the city manager arrived at a "personal subjective opinion," as asserted by the plaintiffs, in arriving at his opinion he looked at "price, concept and detail," factors which reflect the wide wording of the written criteria and the stated desire to find the most "attractive proposal." The wording of the RFP makes it clear to all proponents that the city was searching for a broad variety of innovative and original proposals and that creative concepts and designs were to be considered. A purely objective evaluation in such circumstances was impossible. Furthermore, the process under consideration in this case calling for "attractive proposals" followed by "negotiations" with the lead proponent stands in stark contrast to the formal bidding process in which bids are meticulously scrutinized for conformity. The duty to refrain from awarding a form of contract that is significantly different than Contract A has no application to the situation calling for proposals only. 85 There was ample evidence to support the conclusion of Clearwater J., reproduced at para. 26. Fairness And Good Faith With Respect To Contractual Negotiations Generally 86 It should not be thought from the earlier discussion about the duty of fairness in the tendering or proposal process, that all contractual negotiations will invariably contain a requirement for fairness and good faith. While there can be little doubt that there is a growing tendency for courts and academics to refer to principles of good faith and fairness in contractual relationships, the trend, if it be one, is confined at the moment to certain unique or special contracts or existing contracts and the performance or renegotiation of them. Examples of special contractual relationships are employment contracts, see Wallace v. United Grain Growers Ltd., [1997] 3 S.C.R. 701 (S.C.C.) (the unique circumstances setting employment contracts apart from ordinary commercial contracts including the unequal bargaining power and vulnerability of the employee to the employer), the relationship of insurer and insured (Coronation Insurance Co. v. Taku Air Transport Ltd., [1991] 3 S.C.R. 622 (S.C.C.)) (because of a disparity in access to information), contracts of adhesion (Tilden Rent-A-Car Co. v. Clendenning (1978), 83 D.L.R. (3d) 400 (Ont. C.A.) (the party in whose favour a standard form contract is made must treat the other side with good faith), and tenders. 87 Empress Towers Ltd. v. Bank of Nova Scotia (1990), 73 D.L.R. (4th) 400 (B.C. C.A.), is relied on by the plaintiffs as supporting the bold statement in its factum that "courts have enforced the obligation to negotiate in good faith." This is not a correct statement of the law. Empress Towers Ltd. is entirely distinguishable from the facts before us in that there was an original contract between the parties. The majority in the British Columbia Court of Appeal held that the requirement in the original leasehold agreement for mutual agreement on the renewal market rent did not give the landlord a unilateral right to stipulate the terms of any renewal. The agreement rather was subject to an implied term that the landlord would negotiate in good faith and that consent would not be unreasonably withheld. Other decisions have also concluded that there is no general duty to negotiate in good faith. See Mannpar Enterprises Ltd. v. Canada (1999), 173 D.L.R. (4th) 243 (B.C. C.A.). The reasons for this conclusion are best summarized by the comments of Lord Ackner in Walford v. Miles, referred to at para. 62 of these reasons. 88 Finally, there is the following definitive comment of the Supreme Court in Martel Building Ltd. (at para. 73): As noted by the courts below, a duty to bargain in good faith has not been recognized to date in Canadian law. These reasons are restricted to whether or not the tort of negligence should be extended to include negotiation. Whether or not negotiations are to be governed by a duty of good faith is a question for another time. Constructive Trust 89 This issue can be dealt with in short order. As the trial judge aptly put it, there was no unjust enrichment in favour of the defendants to the detriment of the plaintiffs. There was no wrongful acquisition of property by Lions. In reality, the plaintiffs' claim for a constructive trust is wholly bound up in their contention that the RFP was a binding tender document (and not simply a "beauty contest") entitling the plaintiffs, so they argued, to the land itself. Having lost on this issue, there is no justification for the imposition of a constructive trust in favour of the plaintiffs. The Award Of Damages In Favour Of Lions As A Result Of The "Unreasonable" Filing Of The Caveat And PLO 90 By way of preliminary comment, I make two observations. Firstly, contrary to the submissions by the plaintiffs, the refusal by Mykle J. to set aside the PLO (and caveat) does not render the issue res judicata. I am in entire agreement with the reasons for decision of Borins J.A. in G.P.I. Greenfield Pioneer Inc. v. Moore which disposes of this issue. 91 Secondly, strong findings of fact were made against the plaintiffs which are significant factors, both in considering this issue and the award of exemplary or punitive damages in favour of Lions. 92 While there are differences between a caveat and a PLO (it can be argued, for example, that the tests to vacate a caveat and PLO are somewhat different), both are now founded on an assertion of an interest in land. The application before Mykle J. requested the removal of both the caveat and the PLO. In his reasons the motions court judge dealt only with the PLO, but in the end, as we shall see, this omission is of no consequence for the purposes of the decision on this appeal. 93 The threshold test with respect to whether the caveators are entitled to maintain their caveat is if they have made out a prima facie case for the claimed interest in land. See Canada (Attorney General) v. Fontaine (1995), 104 Man. R. (2d) 219 (Man. Q.B.); aff'd (1996), 110 Man. R. (2d) 77 (Man. C.A.), and Hornsby v. Bone (Trustee of) (1993), 113 Sask. R. 1 (Sask. C.A.). On the other hand, the test to vacate a PLO, as noted in G.P.I. Greenfield Pioneer Inc. v. Moore, is analogous to the test under Rule 20 summary judgment application, namely, whether there was a triable issue that the plaintiffs had a reasonable claim to the interest in land claimed. See as well ConAgra Ltd. v. Universal Grain Systems Inc. (1998), 130 Man. R. (2d) 281 (Man. Master), and Aitken v. Trainor, [2002] O.J. No. 2855 (Ont. S.C.J.). 94 While the initial purpose for which certificates of lis pendens were filed differed from that of a caveat, the same claim to an interest in land can now support both a lis pendens (PLO) and caveat. See Winnipeg Paint & Glass Co. v. Lackman, [1923] 3 W.W.R. 361 (Man. K.B.). Both prevent any dealing with the property in question without taking into account the alleged interest. In summary, regardless of whether it is a caveat or a PLO that is under consideration, if the claimant has no interest in land, then both will rightly be discharged. 95 Did the plaintiffs have a reasonable claim to an interest in land? The short answer is no. While it is true that any right conferred by a contract is capable of constituting a sufficient interest in land for the purposes of justifying the filing of a caveat or PLO, as we have seen there never was an enforceable contract between the plaintiffs and the city. See Thompson v. Yockney (1913), 23 Man. R. 571 (Man. C.A.). This being so, the allegation in the caveat and statement of claim to that effect was incorrect both in law and in fact. 96 This brings me to a discussion of what seems to be a flaw in the process traditionally followed in Manitoba for the granting of a lis pendens (now PLO) in the Court of Queen's Bench. 97 When a moving party brings an ex parte motion, it has long been recognized that there is a duty on that party to make full and frank disclosure of all material facts. United States v. Friedland, [1996] O.J. No. 4399 (Ont. Gen. Div.), and Griffin Steel Foundries Ltd. v. C.A.I.M.A.W. (1977), 80 D.L.R. (3d) 634 (Man. C.A.). There is no principled reason why these rules should not apply to ex parte motions for certificates of pending litigation as they do now with respect to injunctions. See B.G. Schickedanz (Peel) Inc. v. Salna (1997), 14 C.P.C. (4th) 253 (Ont. Gen. Div.), and Eastwalsh Homes Ltd. v. Anatal Development Corp. (1988), 29 C.P.C. (2d) 266 (Ont. H.C.). 98 Indeed, in Ontario this is precisely the practice, and has been so for many years. See J & P Goldfluss Ltd. v. 306569 Ontario Ltd. (1977), 4 C.P.C. 296 (Ont. H.C.), and 830356 Ontario Inc. v. 156170 Canada Ltd., [1995] O.J. No. 687 (Ont. Gen. Div.). In addition, the Ontario cases indicate that not only must an affidavit be filed, but it should spell out the positions of both parties. Illustrative of this practice is the decision in L'Unita Development Corp. v. 505369 Ontario Ltd. (2001), 44 R.P.R. (3d) 303 (Ont. S.C.J.). 99 There is in fact an obligation on the part of counsel to "highlight" in the body of the affidavit the relevant information. Failure to do so constitutes material non-disclosure. See Cimaroli v. Pugliese (1987), 25 C.P.C. (2d) 10 (Ont. H.C.). This is entirely consistent with Queen's Bench Rule 39.01(6) which reads as follows: Where a motion or application is made without notice, the moving party or applicant shall make full and fair disclosure of all material facts, and failure to do so is in itself sufficient ground for setting aside any order obtained on the motion or application. 100 There can be no doubt that there was no affidavit evidence filed before the court when the ex parte motion was made to obtain the PLO. This appears to be the settled Manitoba practice. See ConAgra. It may be that this practice developed due to the historical background and long perceived view that a lis pendens was merely notice of a claim. But, as we have seen, this is no longer the case -- it constitutes a lien and charge upon the property in question. See sec. 58(2) of The Court of Queen's Bench Act, C.C.S.M., c. C280. 101 In my opinion, it is time for the Queen's Bench Rules Practices Committee to reconsider this practice. In my view, it can no longer be justified given the true purpose of a PLO and its potential effect on the rights of the landowner. Without the process being changed, there are ample opportunities for abuse, of which this case is a striking example. At a minimum, the applicant for a PLO should be obliged to file an affidavit which indicates in a reasonable manner the positions known or likely to be taken by the party or parties opposite. It is ironic that there is a higher standard imposed on an applicant for a caveat inasmuch as sec. 195 of The Real Property Act, C.C.S.M., c. R30, gives the document requesting a caveat the status of an affidavit. The Counter-Claim For Damages 102 Was the "unreasonable" filing of the caveat (see sec. 160 of The Real Property Act and sec. 58(4) of The Court of Queen's Bench Act), and the PLO (see Queen's Bench Rule 42.02(i)) compensatable? 103 Not every case in which the plaintiff is found not to have an interest in land attracts an award of damages. See Captain Developments Ltd. v. Nu-West Group Ltd. (1984), 45 O.R. (2d) 213 (Ont. C.A.), Thorman v. Parnes (1990), 73 O.R. (2d) 149 (Ont. H.C.), and Meadowfield Ventures Inc. v. Kennedy, [1990] O.J. No. 295 (Ont. H.C.). What then is the test to be applied in determining if the filing was so "unreasonable" as to justify an award of damages? Is underlying malice or some other wrongful purpose necessary for a court to make an award of damages when a caveat or PLO is removed to trial? This issue appears not to have been considered in Manitoba. There seems to be no consensus in other jurisdictions as to the test. In Ontario, there must be some sort of "unseemly" conduct to support a claim for damages. In Micro Carpets Ltd. v. De Souza Developments Ltd. (1980), 29 O.R. (2d) 77 (Ont. H.C.), the necessary conduct was described as "spurious." Other cases have described the necessary actions as being "frivolous or vexatious." See Ribic v. Weinstein (1982), 140 D.L.R. (3d) 258 (Ont. H.C.). In Captain Developments Ltd. v. Nu-West Group Ltd., the court found that the plaintiff had not acted "in bad faith" in registering its caution against the lands. Still other cases have opined that the statutory cause of action "does not appear to require malice." See 11 Suntract Holdings Ltd. v. Chassis Service & Hydraulics Ltd., [1997] O.J. No. 5003 (Ont. Gen. Div.), and Hilltop Group Ltd. v. Katana, [2002] O.J. No. 2461 (Ont. S.C.J.). Courts in some other provinces, applying somewhat different legislation, seem to require a finding that the process was invoked for improper purposes collateral to the ostensible purpose of the proceeding, before damages will be awarded. See First Canadian Land Corp. v. Rosinante Holdings Ltd. (1985), 62 B.C.L.R. 262 (B.C. C.A.). In Saskatchewan and Alberta, damages have been awarded for the filing of caveats without the necessity of proof of malice. See Ross v. Acorn (1984), 31 Sask. R. 87 (Sask. Q.B.); varied(1986), 46 Sask. R. 69 (Sask. C.A.), and Texas Industries Ltd. v. Unicon Environmental Planning Ltd. (1978), 16 A.R. 234 (Alta. T.D.). 104 While it is not necessary to decide the point for the purposes of these proceedings, I am inclined to the view that while malice is not an essential ingredient for a finding of "unreasonable filing" justifying an award of damages, a finding that the filing was done deliberately for a collateral improper purpose is required. 105 Determining what is reasonable is a virtually impossible task unless it is looked at in the context of the facts of the particular proceedings before the court. Once this is done, it is hard to disagree with the conclusions of Clearwater J. that "the registration of the caveat and the pending litigation order by the plaintiffs was not 'reasonable' and that damages caused by these registrations are recoverable" (at para. 56). By whatever test, Clearwater J. was amply justified on the basis of the evidence and the facts as found to conclude that the filing of both the caveat and the PLO were demonstrably unreasonable and hence compensatable. 106 I also note that abuse of process was pled but not argued in this court. However, nothing needs to be said about this subject in light of our affirmation of the trial judge's finding respecting the "unreasonable filing" of the caveat and PLO. The Assessment Of Damages 107 Admittedly, the assessment of damages by the trial judge in the amount of $35,000 appears to be somewhat arbitrary. But making an award of damages in complex commercial cases such as this is always a difficult task. Trial judges in such circumstances have an obligation to do the best they can with the evidence available, provided they are satisfied, as Clearwater J. clearly was, that damage has been suffered and that the difficulty lies not in entitlement, but in its calculation. In the oft-quoted decision of Penvidic Contracting Co. v. International Nickel Co. (1975), [1976] 1 S.C.R. 267 (S.C.C.), a unanimous Supreme Court confirmed that the mere fact there are difficulties in proving the amount of a claim does not relieve the court from the responsibility to do its best to estimate the loss. The court approved the following statement from Wood v. Grand Valley Railway (1913), 30 O.L.R. 44 (Ont. C.A.) (at pp. 279-80): It was clearly impossible under the facts of that case to estimate with anything approaching to mathematical accuracy the damages sustained by the plaintiffs, but it seems to me to be clearly laid down there by the learned judges that such an impossibility cannot "relieve the wrongdoer of the necessity of paying damages for his breach of contract" and that on the other hand the tribunal to estimate them whether jury or judge must under such circumstances do "the best it can" and its conclusion will not be set aside even if the amount of the verdict is a matter of guess work. This is such a case. I see no reason to interfere with the assessment of damages. 108 There is a long history of cases that have awarded exemplary or punitive damages in cases involving a cloud on title. See Lundy v. Powell (1921), 60 D.L.R. 607 (Sask. K.B.), and Ross v. Acorn. This is another issue that falls to be determined by the specific findings, well supported by the evidence, that the plaintiffs had engaged in conduct that was "deliberate, oppressive, and highhanded." From that conclusion, an award of punitive damages is fully justified. See Whiten v. Pilot Insurance Co., at paras. 66-76. While $10,000 is a modest amount given the overall conduct of the plaintiffs it is not so inordinately low as to award appellate interference. 109 In the result, this court has affirmed all the findings and conclusions of the trial judge. These reasons are of necessity extensive due to the importance and complexity of the multitude of issues raised by this appeal; but for this, this court could just have easily have said, "This is one of those cases where the trial judge got it entirely right," and left it at that. 110 In the result, the appeal and cross-appeal are dismissed with costs to Lions. Appeal dismissed; cross-appeal dismissed. END OF DOCUMENT History (Showing 3 documents) Direct History 1 Mellco Developments Ltd. v Portage la Prairie (City), [2001] 11 W.W.R. 282, 2001 CarswellMan 442, 167 Man. R. (2d) 161, 21 B.L.R. (3d) 25, 22 M.P.L.R. (3d) 227, 11 C.L.R. (3d) 227, 2001 MBQB 236 (Man. Q.B. Sep 17, 2001) Affirmed by 2 KeyCited Citation: Mellco Developments Ltd. v Portage la Prairie (City), 222 D.L.R. (4th) 67, [2003] 1 W.W.R. 216, 2002 CarswellMan 409, 166 Man. R. (2d) 285, 28 B.L.R. (3d) 17, 32 M.P.L.R. (3d) 1, 278 W.A.C. 285, 19 C.L.R. (3d) 1, 2002 MBCA 125, [2002] M.J. No. 381, 4 R.P.R. (4th) 28 (Man. C.A. Oct 01, 2002) Leave to appeal refused by 3 Mellco Developments Ltd. v Portage la Prairie (City), 313 N.R. 194 (note), 2003 CarswellMan 106, 2003 CarswellMan 107, 180 Man. R. (2d) 321, 310 W.A.C. 321, [2002] S.C.C.A. No. 502 (S.C.C. Mar 27, 2003) © Copyright 2005 West, Carswell, Sweet & Maxwell Asia and Thomson Legal & Regulatory Limited, ABN 64 058 914 668, or their Licensors. All rights reserved.