Alleslev-Krofchak v. Valcom Limited

Alleslev-Krofchak v. Valcom Limited

The Court of Appeal dismissed the appeal and upheld the trial judgment: (1) conspiracy directed at ARINC and Valcom's breach of the Valcom/ARINC subcontract constituted 'unlawful means' sufficient for intentional interference with economic relations; (2) AK could not rely on defamation as unlawful means against appellants who were directly actionable, but conspiracy against ARINC supplied the necessary unlawful means; (3) inducing breach of contract requires an actual breach and the appellants caused ARINC to breach its subcontract with Temagami; and (4) damages awards and allocation of liability were reasonable and should be upheld.

Citation
2010 ONCA 557
Parties
Plaintiff (respondent): Leona Alleslev-Krofchak; Plaintiff (respondent): Temagami Outfitting Company Canada Inc.; Defendant (appellant): Valcom Limited; Defendant (appellant): Brian Lewis; Defendant (appellant): Greg Poulin
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
24 August 2010
Procedural Posture
Civil / Court of Appeal Decision on Appeal From Superior Court Trial Judgment
Outcome
Appeal dismissed; trial judgment upheld
Legal Topics
Intentional Interference With Economic Relations, Inducing Breach of Contract, Defamation, Civil Conspiracy, Breach of Contract as Unlawful Means, Damages, Pleading Particulars, Causation and Intent
Source Language
English
Tort Contract Defamation Civil Procedure Appeal Intentional Interference With Economic Relations Inducing Breach of Contract Civil Conspiracy +4 more

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Parties

Leona Alleslev-Krofchak

Plaintiff (respondent)

Temagami Outfitting Company Canada Inc.

Plaintiff (respondent)

Valcom Limited

Defendant (appellant)

Brian Lewis

Defendant (appellant)

Greg Poulin

Defendant (appellant)

Procedural Posture

Civil / Court of Appeal Decision on Appeal From Superior Court Trial Judgment

Legal Issues

  1. 1 Whether the trial judge erred in relying on unpleaded unlawful means (additional defamatory acts, conspiracy, breach of contract) for the tort of intentional interference with economic relations
  2. 2 Whether appellants intended to cause economic loss to Temagami
  3. 3 Whether defamation or conspiracy can constitute unlawful means when the plaintiff can sue directly

Ratio Decidendi

The Court of Appeal dismissed the appeal and upheld the trial judgment: (1) conspiracy directed at ARINC and Valcom's breach of the Valcom/ARINC subcontract constituted 'unlawful means' sufficient for intentional interference with economic relations; (2) AK could not rely on defamation as unlawful means against appellants who were directly actionable, but conspiracy against ARINC supplied the necessary unlawful means; (3) inducing breach of contract requires an actual breach and the appellants caused ARINC to breach its subcontract with Temagami; and (4) damages awards and allocation of liability were reasonable and should be upheld.

Court Disposition

Appeal dismissed; trial judgment upheld

Orders

  • Appeal dismissed and trial judgment of Justice Catherine D. Aitken dated May 25, 2009 upheld
  • Leona Alleslev-Krofchak awarded general damages for defamation of $100000.00 CAD