Directors’ and Officers’ Liability Claim Example – Supplier

Sunview Doors Limited v. Pappas 2010 ONCA 198, Released 16 March 2010, here – allegation of breach of contract for unpaid accounts following bankruptcy, but also an allegation of breach of trust against two directors and an office manager  “pursuant to the combined operation of s. 8 (statutory trust) and s. 13 (pierce the corporate veil)” of the Construction Lien Act (“Act”)”, with this s. 13 ultimately creating joint and several liability. Supplier was successful. My rough guess at total Loss – $110,000.

Greg Shields, Partner, Mitchell Sandham Insurance Brokers, 416 862-5626, gshields@mitchellsandham.com

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