On October 18th, 2006, the Quebec Court of Appeal rendered a much-awaited decision regarding class actions. In Bouchard v. Agropur Coopérative et al,(1) the province’s highest court was called upon to rule on the issue of whether, when there is a multiplicity of defendants, it is necessary that a legal relationship exist between the petitioner applying for authorization to bring a class action and each defendant ...
If you are a business owner-leader whose years of hard labour earned him substantial wealth, you certainly wish to maximize the value of the assets that will be transferred to your heirs. You also want such transfer to proceed harmoniously and at the lowest tax cost possible. To achieve these goals, you must start to plan now ...
Assuming that a foreign court exercises the power to issue letters rogatory or to appoint a commission to examine a witness in Quebec and to ask him to produce some documents, how can that be carried out in Quebec and is there a «blocking statute» protecting some of the documents?The Special Procedure Act (R.S.Q. c. P-27)The Special Procedure Act, Division VI (the «S.P.A.») governs rogatory commissions within Quebec for the purposes of a foreign lawsuit ...
Canada’s Clean Air ActWhat it is notThe new federal strategy respecting greenhouse gas reduction was finally unveiled on October 19, 2006 with the presentation of Bill C-30 on air quality(1) and the release of the brochure entitled Canada’s Clean Air Act(2). A few days later, on October 21st, the Government published its Notice of Intent which outlines the measures that it intends to develop and implement to reduce air emissions 3) ...
On July 17, 2006, the Court of Appeal rendered a judgement concerning the duty of financial institutions making loans to inform and advise their clients.(1) This decision, written by Judge Jacques Chamberland, sheds further light on the obligations of group loan insurance policyholders. The facts In early June 1994, the Respondent, 9000-7048 Québec inc ...
• Directors of NPOs are subject to substantially the same duties and liabilities as directors of for-rofit companies • Being a director of an NPO is not merely an honorary role • The corporate governance rules recommended for or imposed on reporting issuers are examples of best practices for NPOs; however, like for small businesses, they should be adapted, depending on the situation, to avoid unduly complicating the NPO’s processes • Special attention should be paid to certain differenc
As the poultry farming crisis looms and countries are on the lookout for outbreaks of infection, scientists are closely following the evolution of the virus, which is moving to new sources of infection.Before a crisis is on our doorstep, businesses should prepare themselves for the consequences of a high rate of absenteeism. Without exaggerating the risks, they should adopt preventive strategies and become aware of the legal ins and outs of their actions ...
These questions arise periodically and always pose problems of conscience for the lawyers and employers concerned. A recent decision of the Court of Appeal in Caisse Populaire Desjardins de La Malbaie v. Tremblay, J.E. 2006-1218, 2006 QCCA 697, sets out the latest state of the law on the subject. The facts Tremblay sued the Caisse Populaire for unlawful dismissal and his lawyer communicated with employees of his former employer for the purpose of meeting with them ...
On May 12, 2006, the Court of Appeal rendered a decision in a case involving the concept of intentional fault.(1) This judgement, written by Judge Louis Rochette, once again further complicates the idea of an intentional fault committed by an insured. I. The facts Assurances générales des Caisses Desjardins Inc. (referred to herein as “Desjardins”) insured Mr. Fournier’s property. In May 1999, Mr. Fournier committed suicide by setting his home on fire ...
Enacted in June 1998, the Tobacco Act (the «Act») is a major component of the Government of Quebec’s strategy to fight smoking. In June 2005, Quebec’s legislature reinforced the Act by adopting the Act to amend the Tobacco Act and other legislative provisions(1) (the «Amending Act»). The amendments, which came into force on May 31, 2006, are primarily intended to further restrict the use of tobacco in certain locations, including workplaces, and enhance compliance with the Act ...
On June 29, 2006, the Supreme Court of Canada, in a decision written by Judges McLachlin and Abella, reinstated the judgment of the Supreme Court of British Columbia and set aside the $100,000 award for punitive damages of the Court of Appeal. At the same time, it upheld the judgment rendered by the two lower courts and condemned Sun Life to pay the insured $20,000 in compensatory damages for mental distress caused by the breach of the disability insurance contract ...
In the past few years, several companies have experienced financial difficulties with their defined benefit private pension plans as a result of several factors including, in particular, poor investment performance due to falling stock markets, declining interest rates, the aging of beneficiaries and the increase in the number of retirees ...
On February 2, 2006, the Quebec Court of Appeal rendered an interesting judgement involving directors’ liabilities in the case of Johnson and Marcil v. André Arthur et al (500-09-012808-028), a lawsuit for slander ...
R E M E M B E R • A director must act in the best interests of the company at all times. • A director may not favour the interests of the shareholder or the member who arranged for his election if that person’s interests differ from the interests of the company ...
In a judgment rendered on February 7, 2006, the Quebec Court of Appeal reiterated the obligations of the employer and the employee to play a role in seeking a reasonable accommodation. In cases where a collective agreement exists, the union has the same obligation ...
The phenomenon of personnel agencies Generally, Labour Relations laws assume the interaction of two parties, an employer and an employee. The employee offers his services, for pay, to an employer, who determines the working conditions and ensures discipline. This is a bipartite relationship. However, when a business entrusts the management of its human resources to a personnel agency, there is a tripartite relationship ...
Introduction Since June 1, 2004, the Labour Standards Act (hereinafter the “L.S.A.”) requires employers to provide a work environment free from psychological harassment. Thus, employers must, as a first step, take reasonable measures to prevent psychological harassment and then, whenever they become aware of such behaviour, put a stop to it. These duties imposed on employers are obligations “of means” as opposed to obligations “of result” ...
A 100% Quebec Parental Insurance Plan A new Quebec Parental Insurance Plan (QPIP) came into force on January 1, 2006. This plan provides for payment of benefits to all workers eligible for the plan who take a maternity leave, parental leave, paternity leave or adoption leave. This plan replaces the federal employment insurance plan. Beginning in 1996, Quebec informed Ottawa that it wanted to implement its own parental insurance plan ...
The courts have always considered Quebec’s class action legislation to be strictly procedural and not modifying substantive law. Normally a person can only sue if he has a legal relationship with the defendant, meaning that he has a personal right of action. Thus, in the case of Bouchard v. Agropur coopérative et al,1 Mr. Justice J. Viens refused to authorize Bouchard to institute a class action against dairies from which he had not purchased milk. However, Mr. Justice M ...
Some important changes to the Act respecting the legal publicity of sole proprietorships, partnerships and legal persons (the “Act”) took place effective January 1st, 2006.The Act generally applies to all legal persons, partnerships and individuals carrying on an activity in the Province of Québec and requires those entities to register with the Enterprise registrar ...
On December 31, 2005, amendments to Ontario’s Securities Act will come into effect to provide investors with a new recourse against companies and their directors, officers, employees and consultants for any misrepresentation in their public documents or public oral statements, or for failure to make timely disclosure of material changes in the company’s circumstances ...
The recent decision of the Court of Quebec, Small Claims Division, in the case of Spénard v. Promutuel Bois-Francs, société mutuelle d’assurance générale,1 revisited the issue of the right of an insurer to seek the nullity of an insurance policy based on an insured’s failure to disclose a prior conviction under the Young Offenders Act. The Plaintiff claimed $5,100 from his insurer for property stolen from his home between January 24 and January 27, 2003 ...
On October 13, 2005, the Court of Appeal rendered judgment in two cases involving The Maritime Life Assurance Company and its insured, Madeleine Houle. In the first case, the Court of Appeal stated that the insurer is entitled to obtain a counter expertise by summoning its insured by writ of subpoena (art. 399 C.C.P.) even if it had its insured examined previously. In the second case, the Court ruled on the right of an insurer to have the insured examined by the expert of its choice (art ...
Summary • Directors’ risks can be reduced and their worries alleviated through: - fulfilment of their duties of loyalty and diligence - taking certain specific precautions - indemnification commitments and insurance coverage • Statutes provide for indemnification powers and rights; however, such rights should be supplemented • Obtain detailed contractual indemnification commitments • Directors’ and officers’ liability insurance policies are not all the same and need to be review
Summary • Higher standards are imposed on directors • The key mission of a corporate director: to contribute his knowledge and skills with a view to the best interests of the corporation • Corporate governance is the best shield against directors’ liability (Supreme Court judgment in the Wise case) • Specific precautions may be taken by corporate directors to ensure that they both fulfil their key mission and simultaneously protect themselves against the risk of liability Backgro
