Canada Case Law

Vassilakaki v. Vassilaki & Sons Investments Ltd. (Last Call Liquor Mart)

Court

Supreme Court of British Columbia

The court found the employer did not condone the plaintiff's misconduct because it acted reasonably by commissioning an independent investigation, promptly acting on its findings, and actively seeking a replacement; the plaintiff admitted pervasive dishonest conduct (misappropriation, undisclosed excessive wages, interest-free loans, payment of personal expenses) which, in context, constituted just cause for summary dismissal; the defendant's counterclaim succeeded and damages of $814,681.99 were awarded against the plaintiff.

Source excerpt

• Wrongful dismissal
• Just cause
• Condonation
• Misappropriation of corporate funds
• Breach of directors' duties
• Damages

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Court v. Court

Court

Supreme Court of Nova Scotia

The injunction was denied because, although the court found a strong prima facie case of misconduct by both parties, the applicant failed to establish irreparable harm that could not be compensated by damages and did not show that the balance of convenience favoured granting the intrusive mandatory relief; preserving the status quo pending trial was the prudent course.

Source excerpt

• Interlocutory injunction
• Oppression remedy
• Fiduciary duty
• Mandatory vs prohibitive relief
• Irreparable harm
• Balance of convenience

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Sanaie v. Chen

Court

Supreme Court of British Columbia

The court dismissed a petition for leave to bring a derivative action, finding the applicant had not proven good faith or that the proposed claims were in the company’s best interests.

• Derivative action (ss.232-233 bca)
• Breach of fiduciary duty
• Good faith requirement
• Best interests of the company
• Admissibility of affidavit evidence
• Costs (scale b)

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Bradford v. Bradko Enterprises Ltd.

Court

Supreme Court of British Columbia

The court found it just and equitable to liquidate Bradko Enterprises Ltd. because the equal shareholders were deadlocked over the Surrey Property, but ordered a receiver-manager first.

• Winding up
• Just and equitable
• Deadlock
• Reasonable expectations
• Receiver-manager appointment
• Corporate governance

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Muddy Waters Capital LLC v. Mayfair Gold Corp.

Court

Supreme Court of British Columbia

La Cour a annulé une injonction ex parte pour non-divulgation importante et a rejeté, au fond, la demande d’injonction des requérants en matière d’oppression.

• Oppression remedy
• Interim injunction
• Mareva injunction / preservation of assets
• Ex parte non‑disclosure
• Change of control provisions
• Proxy contest

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Petersen v. Hawley

Court

Supreme Court of British Columbia

The court dismissed an oppression-based interim injunction application, finding no strong prima facie case, no irreparable harm, and that the balance of convenience favoured refusal.

• Oppression remedy
• Interim injunction
• Mandatory vs prohibitive injunction
• Reasonable expectations of shareholders
• Production of corporate records
• Director/officer removal

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Smartt Inc. v. Siphon Enterprises Corp.

Court

Supreme Court of British Columbia

En una aplicación de seguridad para costas, el tribunal ordenó a la actora depositar $20,000 en fideicomiso, tras encontrar un riesgo prima facie de incapacidad para pagar costas.

• Security for costs
• Section 236 business corporations act
• Ability to pay costs
• Quantum of security
• Potential stifling of claim
• Security-for-costs

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Allard v. Allard

Court

Supreme Court of British Columbia

The court found justifiable lack of confidence and persistent deadlock in a family business dispute, invoked liquidation under s. 324(1)(b), and appointed a liquidator.

• Just and equitable winding up
• Deadlock between equal shareholders
• Buy-sell agreement
• Forensic audit and information asymmetry
• Remedies under s.227(3)
• Just-and-equitable-winding-up

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Stromsten v. Horvatincic

Court

Supreme Court of British Columbia

The court found material nondisclosure and misrepresentation on an ex parte injunction application in a shareholder dispute, set aside most of the order, and limited relief to signing authority and bank transaction restrictions.

• Ex parte injunctions
• Material nondisclosure
• Misrepresentation to court
• Access to corporate records
• Costs
• Ex-parte-injunction

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3-Sigma Consulting Inc. v. Ostara Nutrient Recovery Technologies Inc.

Court

Supreme Court of British Columbia

La Cour a accordé une suspension d’instance, jugeant qu’il existait une cause plausible liant les claims aux conventions d’actionnaires et renvoyant les questions de compétence à l’arbitre.

• Stay of proceedings
• Arbitration clause scope
• Competence-competence
• Non-signatory enforcement
• Misrepresentation
• Negligent misrepresentation

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