A.I. Enterprises Ltd. v. Bram Enterprises Ltd.

A.I. Enterprises Ltd. v. Bram Enterprises Ltd.

The unlawful means tort is limited to cases where the defendant uses means that constitute a civilly actionable wrong against a third party (or would be if loss occurred) and intentionally targets the plaintiff; no principled exceptions are permitted; on the facts the defendants’ acts were not 'unlawful means' for that tort, but the director breached fiduciary duties and is liable (and his company liable for knowing assistance/receipt).

Citation
2014 SCC 12
Parties
Appellant: A.I. Enterprises Ltd.; Appellant: Alan Schelew; Respondent: Bram Enterprises Ltd.; Respondent: Jamb Enterprises Ltd.; Intervener: Attorney General of British Columbia
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
31 January 2014
Procedural Posture
Torts / Appeal to the Supreme Court of Canada (final)
Outcome
Appeal dismissed
Legal Topics
Unlawful Interference With Economic Relations, Unlawful Means Tort, Breach of Fiduciary Duty, Intention Requirement, Scope of Liability
Source Language
English
Torts Fiduciary Duty Economic Torts Unlawful Interference With Economic Relations Unlawful Means Tort Breach of Fiduciary Duty Intention Requirement Scope of Liability

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Parties

A.I. Enterprises Ltd.

Appellant

Alan Schelew

Appellant

Bram Enterprises Ltd.

Respondent

Jamb Enterprises Ltd.

Respondent

Attorney General of British Columbia

Intervener

Procedural Posture

Torts / Appeal to the Supreme Court of Canada (final)

Legal Issues

  1. 1 What constitutes 'unlawful means' for the unlawful means tort?
  2. 2 Whether the unlawful means tort applies when the third party has no actionable claim
  3. 3 Whether principled exceptions to the unlawfulness requirement are permissible

Ratio Decidendi

The unlawful means tort is limited to cases where the defendant uses means that constitute a civilly actionable wrong against a third party (or would be if loss occurred) and intentionally targets the plaintiff; no principled exceptions are permitted; on the facts the defendants’ acts were not 'unlawful means' for that tort, but the director breached fiduciary duties and is liable (and his company liable for knowing assistance/receipt).

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Trial judgment affirmed and damages as assessed at trial upheld