es 4498g lecture 8 - 2010
TRANSCRIPT
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ES 4498G
Engineering Ethics,
Sustainable Development andthe Law
March 8, 2010
TheThe UniversityUniversity of of Western OntarioWestern Ontario
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Position Paper
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Average – 71%
• Common issues:• Support o position
• !ua"it# o reerences
• !uestions:
– $oran Atherton – S&' (111
– )atherto*u+oca
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-ast C"ass
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• .ort "a+• -imitation perios
• 'uren o proo • .he engineer as e/pert +itness
• riting "a+ e/ams
• Contract "a+
• ntrouction to contracts• &ssentia" e"ements o contracts
• nenorcea3"e contracts
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.oa#4s C"ass
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Contract "a+• Mista5e
• .enering ssues• Contract nterpretation
• 6ischarge o Contracts
• 'reach
• Concurrent "ia3i"it# in tort an contract• .he agreement 3et+een c"ient an engineer
• -a+ cases
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nenorcea3"e Contracts
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• n aition to Statute o raus, there areother situations that ma# resu"t in
unenorcea3"e contracts• Misrepresentation
• 6uress
• nue in"uence
• Mista5e
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Mista5e
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• interest to engineers, especia""# +heninvo"ve +ith construction contracts
• Common mista5e• C"erica" errors in +ritten contract• rer o rectiication use to correct
• ni"atera" mista5e
• A mista5e mae 3# on"# one part# to the contract• Courts o not oten act to provie re"ie to mista5enpart#
• &g Imperial Glass Ltd. v. Consolidated Supplies Ltd.
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Mista5e
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Belle River Community Arena Inc. v. W.J.C. Kaufmann Co. et al.• Contractor su3mitte a 3i +ith a mathematica" mista5e• Ater su3mission, contractor iscovere mista5e an trie to
+ithra+ 3i• +ner reuse +ithra+a", an trie to accept 3i• +ner eventua""# contracte +ith another 3ier, an sue
contractor or the ierence• Courts ecie that the mista5e +as an honest c"erica" error, not a
su3stantia" mista5e, an no one shou" proit rom such a mista5e• 9An oeree cannot accept an oer that he 5no+s has 3een mae3# mista5e an that aects a unamenta" term o the contract
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Mista5e
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Ron Enineerin et al. v. !"e #ueen in ri"t of$ntario et al.
• Contractor ;7?0,000 out o >27@8 mi""ion=simi"ar to the 'e""e 1?0,000
• Contractor rea"ie mista5e an trie to +ithra+ thetener one hour ater 3is +ere opene
• Commission ;o+ner= reuse return o the 3i epositso
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Mista5e
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Ron Enineerin et al. v. !"e #ueen in ri"t of
$ntario et al.
• .ria" )uge ru"e against the contractor ;mperia"B"ass=
• n appea", the ecision is overturne ;'e""e
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.enering ssues – Contract A
TheThe UniversityUniversity of of Western OntarioWestern Ontario
•
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.enering ssues – Contract A
TheThe UniversityUniversity of of Western OntarioWestern Ontario
CALL !" #$DS
#$DS % &E'DE"S
A(A"D
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!**ers+
Acceptance
,
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C!'&"AC&
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$nvitation to &reat
!**er
+
!ne Acceptance
,
C!'S&"-C&$!'
C!'&"AC&
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.enering ssues – Contract A
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• .he e/istence o a Contract A has signiicantimp"ications or 3oth contractors an o+ners, as
+e"" as engineers invo"ve in the teneringprocess – airness in revie+ing an accepting 3is –
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Contract nterpretation
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Sometimes isputes arise 3et+een the parties to acontract regaring the interpretation o the meaning opart o the contract
• Court ru"es 3ase on +itness testimon# an reaing othe contract
• Strict nterpretation• ocuses on precise +oring o contract, provie the contract is
not 9unconsciona3"e
• Preerre in Canaa• -i3era" nterpretation
• .a5es the intent o the parties into account• See5s to in a 9air an reasona3"e so"ution
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Contract nterpretation
TheThe UniversityUniversity of of Western OntarioWestern Ontario
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6ischarge o Contracts
TheThe UniversityUniversity of of Western OntarioWestern Ontario
Contracts ma# 3e ischarge in a num3er o +a#s:
• Perormance
• hen a"" parties to the contract have comp"ete their o3"igations• Ma# 3e e/tene 3# +arranties
• Agreement to 6ischarge• Since parties are ree to amen the contract, the# can terminate
the contract at an# time 3# mutua""# agreeing to terms
• 6ischarge 3# &/press .erms• Provisions are inc"ue in the contract that a""o+ termination o
the contract upon certain events – eg 3an5ruptc#, ai"ure tocomp"ete +or5 proper"#
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6ischarge o Contracts
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• 6ischarge 3# rustration• ccurs +hen changing circumstances raica""#
change the o3"igations, resu"ting in a ierent thingthan +as origina""# contracte or • 9orce ma)eure provision simi"ar 3ut ierent –
a""o+s or e/tene time 3ut not ischarge• n"# app"ie in e/ceptiona" circumstances
• 6estruction o essentia" o3)ect• Persona" incapacit#• EonDoccurrence o an event• Bovernment intervention F i""ega"it#
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'reach o Contract
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• ccurs +hen one part# to a contract ai"s to perormo3"igations speciie in the contract
• 'reach o contract entit"es the nonDeau"ting part# to sueor amages
• 'reach ma# a""o+ nonDeau"ting part# to consiercontract ischarge, 3ut on"# +here an essentia"conition has 3een 3reache
• arrant# – a nonDessentia" contract o3"igation• Conition – an essentia" contract o3"igation
• Contract ma# inc"ue provision to terminate contractupon 3reach
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6irect an nirect 6amages
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• 6ut# to Mitigate• Part# suering a "oss as a resu"t o 3reach o contract has a ut#
to mitigate the amount o amages suere
• Conuct +i"" 3e consiere 3# court +hen a+aring amages
• Pena"t# C"auses• Contract provision +hich speciies amages or certain 3reaches
o the contract – eg e"a#e comp"etion
•Shou" 3e consiere as a preDestimate o amages ;9"iHuiateamages=
• Court +i"" not enorce a pena"t# c"ause that is not a genuine preDestimate o amages
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Quantum Meruit
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• 9As much as is reasona3"# eserve
• Princip"e use to etermine reasona3"e pa#ment
amounts +hen no e/press agreement has 3eenreache, 3ut +or5 has 3een perorme
• &g +hen a contract is repuiate an nonD
eau"ting part# consiers the contractischarge, 3ut +or5 partia""# comp"ete ;A"5o5v Br#me5=
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Su3stantia" Comp"iance
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Ma)orit# o contract o3"igations have 3eenu"i""e, 3ut some minor aspects have not
• eiciencies are minor, contractor +i"" 3epai or +or5 perorme, "ess an# costs tocorrect eiciencies
• .#pica""# occurs +hen minorrepairsFa)ustments are necessar#
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Speciic Perormance an n)unction
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• &Huita3"e remeies supp"ementar# to reme# oamages
• Eot grante un"ess amages +i"" not supp"# suicientre"ie
• Speciic Perormance• Court can compe" a part# to perorm a contract o3"igation
• Sa"e o "an or uniHue items
• Eot grante +hen court must supervise• n)unction
• Ma# 3e grante +here a contract contains a 9negativecovenant, eg a nonDcompetition agreement
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6amages in tort vs contract
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Purpose o tort "a+ is to compensate victim anreturn them to +here the# +ou" 3e +ithout the
tort, thereore amages a+are are thoseactua""# cause
• n contract, amages are +hat is reasona3"#contemp"ate or agree at the time the contractis orme – opportunit# to "imit
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unamenta" 'reach
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• A 3reach that goes to the ver# root o the contract
• mportant +hen iscussing e/emption c"auses
• Gar3utt4s P"asticine v a#ne .an5• a#ne .an5 +as contracte to esign an insta"" storage tan5s
or stearine at Gar3utt4s actor#
• P"astic pipe"ine ai"e, resu"ting in ire an estruction o theactor#
• Contract containe a provision "imiting the contractor4s "ia3i"it#• Court ru"e that, in the event o a unamenta" 3reach, an
e/emption c"ause cannot 3e re"ie upon to "imit "ia3i"it# – a#ne.an5 +as orere to pa# the u"" cost o reconstruction
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unamenta" 'reach
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Photo Prouction v Securicor .ransport• &ng"ish Gouse o -ors overru"e preceent
esta3"ishe in Gar3utt P"asticine• &mp"o#ee o securit# compan# starte a ire at theactor# – compan# sue or amages
• &/emption c"ause "imite contractor4s "ia3i"it# – noneg"igence invo"ve
• Court uphe" moiication o responsi3i"ities agree toin the contract, rather than app"#ing octrine ounamenta" 3reach
•
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unamenta" 'reach
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Gunter &ngineering v S#ncrue• Gunter an another compan# ;A""is Cha"mers= +ere hire to
supp"# gear 3o/es to S#ncrue
• Bear 3o/es ai"e ater e/press +arranties ha e/pire, 3utimp"ie +arranties in ntario Sa"e o Boos Act sti"" app"ie
• Gunter ha no e/emption c"ause, 3ut A""is ha a c"ause en#ingthe app"ication o a"" other +arranties ;inc"uing Statutor#=
• Court conc"ue A""is not "ia3"e
• Acceptance o the 9construction approach over the concept ounamenta" 3reach
• Proper"# rate, c"ear an irect e/emption c"auses ma# 3ere"ie upon, provie the# are not unconsciona3"e ;rare=
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Concurrent -ia3i"it#
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Stanar o care e/pecte o engineersame or contract an tort
• &ngineer ma# 3e concurrent"# "ia3"e in3oth contract an tort or the same action
• -imitation perio
• Concurrent torteasors
• Amount o amages
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&ngineerDC"ient Agreement
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Agenc#
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6ut# o Gonest#
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• 6ut# o care inc"ues ut# to act +itha3so"ute honest#
• rau ma# resu"t in repuiation o thecontract, amages or tort o eceit ancrimina" charges
• Secret commissions ;3ri3es, 5ic53ac5s=that in"uence the agentDprincipa"re"ationship a"so against the "a+
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Construction Contracts
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• &ngineer usua""# not a part# to construction contracts• n aition to preparing p"ans an speciications,
engineer usua""# aministers contract ;pa#ment
certiicates, +or5 comp"etion, charges or e/tras,emergencies, etc=
• hen empo+ere to ma5e ecisions that are ina" an3ining upon the parties to a construction contract, theengineer must act )uicia""# ;ie inepenent o the o+ner
an in goo aith=• Breat care must 3e ta5en +hen acting as inspector • 6etai"e recors shou" 3e 5ept• urther inormation in Chapter 2@
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ther -ega" ssues
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• ther chapters in Marston te/t o interestan re"evant or P& e/ams:
• 28 – Ar3itration an A6<• (0 – -ien "egis"ation
• (2 –
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riting -a+ &/ams
TheThe UniversityUniversity of of Western OntarioWestern Ontario
1= .he acts•
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riting -a+ &/ams
TheThe UniversityUniversity of of Western OntarioWestern Ontario
(= ormat• -ength an ormat is up to #ou
• Point orm usua""# accepta3"e• &ective communication is 5e#
@=
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&/amp"e
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• Samp"e Case Stu# – p 1I2
• Prime &Huipment v Machineor5s
• Prime contracts +ith Machineor5s to provie gear3o/es
• Contract inc"ue provision "imiting Machineor5s"ia3i"it# to >(00,000
• Bear 3o/es ai"e, costing Prime an aitiona" >@00,000ater >2?0,000 ha a"rea# 3een pai to Machineor5s
• hat c"aim can Prime ma5e against Machineor5sJ
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nDc"ass Assignment
TheThe UniversityUniversity of of Western OntarioWestern Ontario
• orm groups o (D? stuents
• Se"ect 1 o the samp"e tort cases ;pg ((2D(@@= an 1 o
the samp"e contract cases ;pg (@?D(??= given in the Appeni/ o the Marston te/t
• 6iscuss the acts o the case an the pertinent "ega"princip"es ientiie in c"ass
• rite suita3"e responses to the Huestions pose in thecases ;simi"ar to the samp"e ans+ers on pg I7DI8 an1I(D1I@=
• Gan in the so"utions, inc"uing name an stuentnum3er o each group mem3er, 3# the en o c"ass
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Ee/t C"ass
TheThe UniversityUniversity of of Western OntarioWestern Ontario
&opics – &thics o