It's "Buyer Beware" For Resource Developers When It Comes To Crown Consultation

The duty to consult is a Crown responsibility. But what happens when the Crown's consultation is inadequate? Can a company that suffers losses as a result claim compensation from the Crown? A recent decision of the British Columbia Court of Appeal in Moulton Contracting Ltd. v British Columbia, 2015 BCCA 89 indicates that it will be very difficult for companies to seek compensation from governments even where the Crown is found to have mishandled its consultation obligations.

Background

This decision arose from an appeal of a trial decision that ordered the Province of British Columbia (the "Province") to pay damages of $1,750,000 to the respondent, Moulton Contracting Ltd., ("Moulton") for breach of an implied term of a contract as well as liability in negligent misrepresentation.