The rule in Foss v. Harbottle is well established in Ontario law. The rule prevents shareholders from suing for a loss in the value of their shares brought about by a wrong done to the corporation. The rule is a consequence of the separate legal personality of the corporation. Just as shareholders (subject to limited […]
Category Archives: Commercial Litigation
Ontario Considers Eliminating Juries From Civil Trials
Litigation is a time-consuming prospect in any scenario, but trials involving juries are even more so. At a time when litigation has largely been on pause due to the COVID-19 pandemic, the backlog awaiting Ontario’s courts has been building. In response to the backlog, Ontario’s Attorney General has recently indicated that he is considering the […]
The Enforceability of Arbitration Clauses in Ontario
Whether in a shareholder agreement or an employment contract, the enforceability and permissible scope of an arbitration clause have been hot topics in Ontario courts in recent years. Below, we will look at how the courts have interpreted these issues and what it means for arbitration clauses in contracts going forward. What is an Arbitration […]
Ad Hoc Fiduciary Duty and Causation
“Fiduciary duty” is a concept that exists inherently in many types of relationships. To owe a fiduciary duty means having a responsibility to act in the best interest of another party. An estate trustee, for example, owes an inherent fiduciary duty to the beneficiaries of the estate. They must ensure that debts of the estate […]
Business Interruption Insurance & COVID-19
Many businesses take out insurance to cover losses that can arise due to fire or theft, including damage to equipment or property. However, it is equally important to consider the potential for extended periods of income loss if a business is forced to close temporarily. For example, if there is a fire, a business will […]
Resolving Legal Disputes During COVID-19
The fallout from the global spread of COVID-19 has had a major impact on every industry and profession throughout the country, including the legal profession. With Ontario courts closing to all but the most urgent criminal and family matters in recent weeks, those facing civil disputes classified as “non-urgent” have been left wondering when they […]
Force Majeure and Frustration in Contracts Following the COVID-19 Pandemic
COVID-19 has clearly had a significant adverse impact on the economy of Ontario, Canada and the global economy. Given the impact of social isolation and physical distancing, and the closure of non-essential businesses, the reality is many individuals and businesses will be unable to fulfil their ongoing contractual commitments. What are the available legal defences? […]
The Discoverability of Oppression Claims
The Ontario Court of Appeal (ONCA) in Maurice v. Alles (2016) found section 4 of the Limitations Act to apply to oppression claims under the Ontario Business Corporations Act (OBCA). Accordingly, claimants must bring their oppression claims within two years of the alleged oppressive conduct, subject to discoverability. In the case of multiple oppressive acts […]
The Importance of Sufficiently Proving Damages
In civil litigation for breach of contract, establishing a breach is only part of the battle. The primary remedy for a breach of contract is an award of damages, in an amount sufficient to put the aggrieved party into a position it would have been if not for the breach. In order to secure an […]
Adding a Defendant & “Reasonable Discoverability”
In the course of a litigation file, misapprehensions sometimes occur. When there is confusion as to the identity of the proper defendant, sometimes the need to add a new party defendant to the action arises. Depending on how far into an action the new defendant is discovered, the statutory limitation period may help to provide […]