WebDAV user permissions on a per file basis

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http://serverfault.com – My team and I are building a webDAV server using Apache 2.2. We have run into an issue with user permissions. We have it currently set up so that user permissions work for folders on the server but one of the team members feels that is not enough. The system he is envisioning allows the user to access any folder but they will only be able to see files that the owner of that folder has given them permission to see. All the webDAV permission stuff I have seen online only mentions folders not individual files. Is this sort of set up even possible with webDAV? (HowTos)