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Breach of Duty Canada

Bennett Jones LLP

Delaware Court Affirms High Threshold for Breach of Directors' Caremark Duties

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In a recent case, Bricklayers Pension Fund of Western Pennsylvania (derivatively on behalf of Centene Corporation) v Brinkley (Centene), Delaware's Court of Chancery dismissed “Caremark duty claims”—named after the 1996 case...more

Bennett Jones LLP

Delaware Courts Confirm High Standard for Breach of Oversight Duty Applies Equally to Officers and Directors

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In the United States, corporate directors and, as confirmed by the Delaware Court in McDonald’s Corp. Stockholder Derivative Litigation (McDonald), corporate officers owe, as a subset of their duty of loyalty, a duty to...more

Stikeman Elliott LLP

Pleading Breaches of Fiduciary Duties in Class Proceedings: Court of Appeal Keeps the Bar Low in Ontario

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In Boal v International Capital Management Inc.(“Boal”), the Ontario Court of Appeal (the “Court”) considered the pleading requirements for certification of a breach of fiduciary duty cause of action. In holding that it was...more

Littler

Alberta, Canada Court Holds Senior Executive Personally Liable to Employer

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In Breen v Foremost Industries Ltd, 2023 ABKB 552, the Court of King’s Bench of Alberta dismissed the claim of a President and CEO that he had been wrongfully dismissed from his employment, finding that his employment had...more

Littler

Ontario, Canada Appeal Court Upholds Refusal to Impose Constructive Trust Over Proceeds of Sale of Property Owned by Defrauding...

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A recent Ontario Court of Appeal (OCA) decision demonstrates the process an employer may be expected to undertake to recover employee-stolen funds when the proceeds of the fraud are traced to the assets of a “stranger to the...more

Blake, Cassels & Graydon LLP

Cour d’appel de l’Ontario : Une perte ne peut être présumée par suite d’un manquement à l’obligation d’exécution honnête

Dans l’affaire Bhatnagar v Cresco Labs Inc (l’« affaire Bhatnagar »), la Cour d’appel de l’Ontario (la « CAO ») a statué qu’il ne peut être présumé que des dommages-intérêts seront attribués lorsqu’un défendeur a manqué à son...more

Blake, Cassels & Graydon LLP

No Loss, No Foul: Ontario Court of Appeal Clarifies That Loss Will Not Be Presumed From a Breach of the Duty of Honest Contractual...

In Bhatnagar v. Cresco Labs Inc. (Bhatnagar), the Court of Appeal for Ontario (Court) held that damages are not presumed where a defendant breaches the duty of honest contractual performance. Rather, according to the Court,...more

Bennett Jones LLP

Delaware Court Extends a Director's Duty of Oversight to Officers—What Could This Mean for Canadian Directors and Officers?

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In the United States, corporate directors owe, as a subset of their duty of loyalty, a duty to monitor and oversee the operations of the company, referred to as the "duty of oversight" in this blog. This duty is known as the...more

Bennett Jones LLP

Court Decision Highlights "Nominee" Director Issues

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Key Highlights - - Centerra Judge found the breaches of fiduciary duties the most egregious he had ever seen. - Nominee director principles in Centerra are relevant to directors of corporations governed by the Canada...more

Smart & Biggar

B.C. Supreme Court declines to strike Province’s class action claims to recover healthcare costs and damages related to opioid...

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In August 2018, the Province of British Columbia (Province) commenced a class action on behalf of itself and other provincial and federal governments against approximately 50 pharmaceutical manufacturers, wholesalers, and...more

Littler

Ontario, Canada Court Finds With-Cause Dismissal of Long-term Fiduciary Employee Justified

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In Goruk v. Greater Barrie Chamber of Commerce, 2021 ONSC 5005, the Ontario Superior Court found that the Chamber of Commerce (COC) was justified in dismissing with cause a 75-year-old, long-term employee with no prior...more

Blake, Cassels & Graydon LLP

CSC : Obligation fiduciaire de la Couronne et indemnisation des terres inondées d’une réserve autochtone

Le 16 juillet 2021, dans l’arrêt Southwind c. Canada, 2021 CSC 28 (l’« arrêt Southwind »), la Cour suprême du Canada (la « CSC ») a conclu que le montant de 30 M$ CA accordé à la Lac Seul First Nation (la « LSFN ») par la...more

Littler

Ontario, Canada Court Awards Employee $25,000 in Moral/Aggravated Damages Because Employer Breached Duty of Good Faith and Fair...

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In Russell v. The Brick Warehouse LP, 2021 ONSC 4822 (The Brick Warehouse), on a motion for summary judgment in a wrongful dismissal action, the court awarded $25,000 in moral/aggravated damages because the employer breached...more

Blake, Cassels & Graydon LLP

SCC Rules that Crown’s Fiduciary Duty is Central in Assessing Compensation for Flooded Indigenous Reserve Land

On July 16, 2021, in the case of Southwind v Canada, 2021 SCC 28 (Southwind), the Supreme Court of Canada (the Court) ruled that the C$30-million awarded to Lac Seul First Nation (LSFN) by the Federal Court was insufficient...more

Bennett Jones LLP

Catch-22: Defending a Breach of Duty of Good Faith Claim and the Potential Waiver of Legal Privilege

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A defendant who wishes to rely on legally privileged information in response to a claim alleging breach of a duty of good faith, or alleging bad faith, may face a "Catch-22" scenario. ...more

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

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In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Blake, Cassels & Graydon LLP

Pensions, Benefits & Executive Compensation Newsletter – March 2021

Welcome to the 29th issue of the Blakes Pensions, Benefits & Executive Compensation Newsletter. This newsletter provides a summary of recent jurisprudential developments that affect pensions, benefits and executive...more

Littler

Supreme Court of Canada Clarifies Duty to Exercise Contractual Discretion in Good Faith

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In 2020, the Supreme Court of Canada (SCC) heard arguments in Wastech Services Ltd. v. Greater Toronto Sewage and Drainage District, 2021 SCC 7 (Wastech) and C.M. Callow Inc. v. Zollinger, 2020 SCC 45 (Callow), both of which...more

Blake, Cassels & Graydon LLP

La Cour suprême du Canada reconnaît l’obligation de bonne foi dans l’exercice d’un pouvoir discrétionnaire contractuel

Dans l’arrêt qu’elle a rendu dans l’affaire Wastech Services Ltd. c. Greater Vancouver Sewerage and Drainage (l’« affaire Wastech »), la Cour suprême du Canada (la « Cour suprême ») a reconnu l’obligation générale d’exercer...more

Blake, Cassels & Graydon LLP

Supreme Court of Canada Recognizes Duty of Good Faith in Exercise of Contractual Discretion

In Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage (Wastech), the Supreme Court of Canada (SCC) recognized a general duty to exercise contractual discretion in good faith. This bulletin summarizes the SCC’s...more

Blake, Cassels & Graydon LLP

Callow and the Duty of Honest Contractual Performance: What You Need to Know

In C.M. Callow Inc. v. Zollinger, the Supreme Court of Canada (SCC) held that a group of condominium corporations was liable for breaching their duty of honest contractual performance when they knowingly misled a maintenance...more

Carlton Fields

Court Confirms Arbitration Award as Not in Manifest Disregard of the Law

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Metso Minerals Canada Inc. and Metso Minerals Industries Inc. entered into a contract with ArcelorMittal Exploitation Miniere Canada and ArcelorMittal Canada Inc. to supply a specialized mill to a mining mill that...more

Bennett Jones LLP

Fraud and Knowing Assistance—Between the Innocents

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Fraud continues to plague businesses and individuals in Canada and abroad, increasing at an alarming rate. Those involved in asset recovery frequently turn to the equitable doctrine of knowing assistance to catch "strangers"...more

Blake, Cassels & Graydon LLP

Pensions Newsletter – October 2018

Welcome to the 22nd issue of the Blakes Pensions Newsletter. This newsletter provides a summary of recent jurisprudential developments that affect pensions and benefits and is not intended to be legal advice....more

Bennett Jones LLP

US $2.6-Billion Fraud Judgment Awarded Against Former Sino-Forest CEO

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On March 14, 2018, the Honourable Justice Penny of the Ontario Superior Court (Commercial List Division) released a decision granting a US$2.6-billion judgment to the SFC Litigation Trust for fraud and breach of fiduciary...more

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