Quote:
|
Wow! This decision is going to be appealed, no doubt, but in the end, if CPR and the Province actually do have to pay, this would be absolutely stunning. It totally does make sense to recover actual costs, interest and economic loss of profit etc., but the amount of this award is insanely high. Commercial developers normally make 15% gross margin, which goes down to 5% after overhead and before taxes. With consulting costs being relatively low in the preliminary project stages, it must be all economic loss then. Using 5% as a denominator, $163M award suggests a $3.26B project value which is not even remotely close to what Remington was proposing on these lands. Just wow.
|
Yes, I suspect the appeal is likely to focus on the damages awarded, rather than the actual finding of liability (I admit, I haven't read the full decision yet.... it's 200 pages long. However, given that the trial ended in June and the decision is already out, I think some students clerking at the Court really earned their keep on this one).