Pomerleau Inc. v. Canada
T-1090-87
Denault J.
18/1/96
11 pp.
As result of increase in excise tax rate, plaintiff claimed amount from defendant for increase in cost of performing contracts on which it had successfully bid-Ways and means resolution had announced increase in federal sales tax rate on building construction materials and equipment; however, Bill had not been adopted when House dissolved for federal election-New Minister of Finance tabled second ways and means resolution providing for same tax increase-Increase in tax rate resulted in increase in plaintiff's costs, and it therefore requested adjustments in prices of its contracts; however, tender form included clause providing that tax change, even one occurring after filing of bid, would be deemed to have occurred before presentation of bid if Minister of Finance had given public notice thereof-Issue whether dissolution of House and prorogation of Bill had effect of nullifying ways and means resolution-Legislative process commenced by tabling of ways and means resolution must be continued and completed by adoption of statute before prorogation, failing which it remains without effect-From legislative standpoint, tax increase not enacted and consequently lapsed in regard to tax, since ways and means resolution not followed by enabling legislation prior to prorogation of Parliament- From contractual standpoint, defendant could not hold presumption in tender form against plaintiff, as fiscal change had not been completed at time Parliament dissolved, prior to filing of initial bid-Plaintiff entitled to increase in costs, interest and its costs and disbursements.