LOLG Successful in Obtaining More than $555 Million Trial Judgment Against Federal Government

Overview

On Wednesday, August 6, the Superior Court of Justice, Commercial List, released its decision in Quadrangle Group LLC et al v. The Attorney General of Canada. Following a seven week trial, Justice Osborne awarded approximately $555,000,000 plus prejudgment interest for negligent misrepresentation. In 2007, Industry Canada induced the plaintiffs to capitalize a new wireless carrier and build out a network to compete against incumbents with ‘specific representations intentionally and expressly made’ that their spectrum licences could be transferred after five years. In 2013, Canada broke its promise by ‘capriciously’ removing the right to transfer the license and then interfered in a CCAA sales process. The decision is a thorough, careful review of the principles governing liability of public authorities in the commercial context, and the circumstances in which a private law duty of care will be imposed on a regulator. It is also a cautionary lesson on the limits of regulatory discretion and the line between bona fide policy making and capricious behaviour, including interference with the judicial process. LOLG represented the co-plaintiff, Quadrangle. The team included Jonathan Lisus, Phil Underwood and Vivien Milat, as well as former partner Matthew Law, now the SVP, Legal Affairs at Rogers. The decision can be found here.