Court of Appeal reconsiders test for jurisdiction over foreign defendants
In a recent decision, a five judge panel of the Court of Appeal for Ontario revised the legal test to be applied when the Ontario courts are asked to assume jurisdiction over a foreign defendant. The Court’s decision in Van Breda v. Village Resorts Ltd. clarifies the applicable legal principles and should provide greater guidance to Ontario courts on whether and when they can properly take jurisdiction over foreign defendants.
Read Full ArticleCourt of Appeal Upholds $3 Million Judgment in Bad Faith Revocation Case
In its decision released earlier this year in Rosenhek v. Windsor Regional Hospital,[i] the Court of Appeal for Ontario affirmed a $3 million judgment awarded to a doctor in his action against a hospital arising from the denial of hospital privileges to him. The Court concluded that the hospital’s Board of Governors had acted in bad faith in summarily revoking the doctor’s hospital privileges primarily because he didn’t “fit in” with his fellow staff members.
Read Full ArticleThe IMAX Case: Superior Court certifies first-ever Ontario shareholder class action for misrepresentations on the secondary market
In a pair of decisions released the same day, Justice Katherine van Rensburg of the Ontario Superior Court of Justice became the first judge to consider the statutory remedy created under section 138.3 of the Ontario Securities Act (the “Act”) for shareholders of public companies who suffer damages from public company misrepresentations on the secondary securities market in documents such as annual financial statements and other public documents.
Read Full ArticleNo cause of action for third party claims against solicitors when negligent advice given about mitigation, Ontario Court of Appeal rules
In its decision released last Fall in Davy Estate v. CIBC World Markets Inc. , the Ontario Court of Appeal affirmed an Ontario Superior Court order striking out a third party claim in which the defendant had tried to sue the plaintiff’s lawyer. The third party claim had alleged that the plaintiff’s lawyer had given the plaintiff bad advice on the mitigation of her damages. In addition to finding that the third party claim against the plaintiff’s lawyer could not succeed at law, the Court of Appeal also cited policy reasons against permitting one party to sue another party’s lawyer for alleged negligence; noting that such claims undermine a lawyer’s loyalty to their client and invade the sanctity of the lawyer-client relationship.
Read Full ArticleBusiness judgment rule does not trump unanimous shareholders’ agreement
Directors of a corporation cannot invoke the business judgment rule to justify decisions that violate a unanimous shareholders’ agreement, the Ontario Divisional Court held recently.
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