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
You intend to take on the North-American market? The Province of Quebec is amongst the best place to do so because of the bilinguism (English and French), important business with the United States of America, tax credits, etc. Here are a few practical issues you should consider.The Corporate FormIn Canada, there are many legal forms under which a company can do business. The majority of business people choose an incorporation ...
On April 4, 2005, the Court of Appeal issued its decision in CGU v. The Wawanesa Mutual Insurance Company and Axa Insurance1, which sheds new light on the right of a subrogated insurer to institute legal proceedings directly against the insurer of the person allegedly responsible for the loss. The decision also contains a discussion of the concept of solidarity between insurer and insured for the purposes of the interruption of prescription ...
A new regime for prospectus and registration exemptions for private placements is now in effect in Quebec. It was developed by the Canadian Securities Administrators (“CSA”) and affects both private and public companies. In Quebec, the new regime has been implemented in the form of a regulation (“Regulation 45-106”), which has brought about significant changes to both prospectus and registration exemptions under the Securities Act (Quebec) (the “Act”) ...
The provisions of the Environment Quality Act (“EQA”) regarding contaminated land require a person intending to change the use of a parcel of land to perform a site characterization study1 if certain specific industrial activities have been carried on there. If this study reveals the presence of contaminants in excess of the limit values prescribed by regulation 3, a notice of contamination must be registered in the land register against the property in question ...
On February 2, 2005, the Court of Appeal rendered judgement in L’Union-vie, compagnie mutuelle d’assurance v. Laflamme1, and allowed the appeal of Union-Vie, the defendant in the case. In the court of first instance, Union-Vie had been ordered to pay insurance proceeds of $200,000 further to the death, on September 27, 2001, of the Plaintiff’s spouse, pursuant to a life insurance policy issued on the basis of an insurance application dated October 23, 1998 ...
On March 18, 2005, the Quebec Court of Appeal handed down an important decision confirming that the evidence relating to the behaviour and practices of a “reasonable insurer” need not be provided by an expert witness. In CGU Compagnie d’assurances du Canada v. Sylvain Paul et al., (J.E. 2005-705), Justices Louise Mailhot, René Dussault and Marie-France Bich dealt with this issue in connection with an objection to evidence made by the attorney representing the insured, Mr ...
The Competition Bureau (the “Bureau”) is responsible for the administration and enforcement of the Competition Act (the “Act”), including criminal provisions relating to conspiracies to lessen competition, price fixing, market allocation, bid rigging and resale price maintenance, and civil provisions relating to abuse of dominant position, as well as other practices that may lessen competition, such as tied selling, refusal to deal and exclusivity ...
Armando Aznar J. of the Court of Québec recently rendered a harsh judgment against an insurance company.1 Although the amounts at stake were minimal, the decision may have a significant impact on insurers. This is one of the rare judgments where an insurer was ordered to pay exemplary and moral damages for having made allegations in the pleadings based on unjustified suspicions resulting in damages to the integrity and honesty of its insured ...
