Shareholder/director not liable for “presumptive benefit” or “duty to explain”
Major shareholders and directors of corporation are not liable for torts of the corporation because they “presumptively benefit” from those torts, or because of a duty to be aware of, explain, and correct, the tortious behaviour, the Court of Appeal recently held in A-C-H International v. Royal Bank of Canada.[1] The court also re-affirmed the principle that “law suits must be decided within the boundaries of the pleadings”.[2] $1.7 million stolen through forged endorsements The facts of the case are straightforward. A-C-H International (“ACH”) was a joint venture between two companies, Ambler-Courtney Limited (“ACL”) and Hub Equipment Ltd. Endorsements were ... [more] Full article
It’s Not Just the Exchange Rate or the Spelling
The Substantial Differences Between Canada and the US in Handling Cheque (Check) Fraud Claims Implications for Insurers
In Canada, “check” is spelled “cheque”; and cheques are, of course, generally written in Canadian dollars and drawn on Canadian banks. Those are not, however, the only differences between Canadian and US law and banking practices relating to cheques. [more] Full article
3Com wins nearly US$10 million in two grey marketing fraud cases
3Com, a manufacturer of computer networking equipment and voice over IP telephones, won a total of US$9.9 million in damages in two recent Ontario decisions. On April 29, 2004, Mr Justice Juriansz awarded 3Com US$6.5 in damages against re-seller Zorin International Corp. and its principals, Sam Marotta and Domenic Sicilia for deceit. Earlier, on March 19, 2004, Madam Justice Lang awarded 3Com US$3.4 million in damages against re-seller Intelligent Decisions Inc. (IDI). These are believed to be the largest damage awards ever in grey marketing fraud cases in North America. [more] Full article