es 4498g lecture 8 - 2010

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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


• Average – 71%

• Common issues:• Support o position

• !ua"it# o reerences

• !uestions:

– $oran Atherton – S&' (111

– )atherto*u+oca

mailto:[email protected]:[email protected]

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-ast C"ass


• .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


• 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


• 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


• 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


• 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


• 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


• 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


•

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CALL !" #$DS

#$DS % &E'DE"S

A(A"D

!")AL

C!'&"AC&

C!'&"AC& A

!**ers+

Acceptance

,

#$DD$'G

C!'&"AC&

C!'&"AC& #

$nvitation to &reat

!**er

+

!ne Acceptance

,

C!'S&"-C&$!'

C!'&"AC&

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• .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


• 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


•

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6ischarge o Contracts


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


• 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


• 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


• 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


• 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


• 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


• &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


• 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


• 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


• 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


• 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#


• 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


• Agenc#

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6ut# o Gonest#


• 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


• &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


• 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


1= .he acts•

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riting -a+ &/ams


(= ormat• -ength an ormat is up to #ou

• Point orm usua""# accepta3"e• &ective communication is 5e#

@=

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&/amp"e


• 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


• 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


&opics – &thics o

es 4498g lecture 8 - 2010

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