A. Larmand

A sentencing appeal concerning whether a justice of the peace has jurisdiction to pierce the corporate veil and hold a sole shareholder and directing mind personally liable for corporate fines.

The defendant corporation pleaded guilty to three charges under the Electricity Act arising from unsafe electrical work that resulted in a death.

The trial judge imposed fines of $430,000 but declined to pierce the corporate veil, finding she lacked jurisdiction.

The Crown appealed, arguing the defendant had improperly transferred corporate assets to himself and a new corporation to shield them from liability.

The appellate court found that justices of the peace do possess implied jurisdiction to pierce the corporate veil in appropriate circumstances and that the test was satisfied on these facts.

The Electrical Safety Authority sought an extension of time to file an appeal of a sentencing decision by Justice of the Peace Moses.

The ESA's notice of appeal was filed outside the statutory appeal period.

The central issue was whether the trial court had jurisdiction to pierce the corporate veil to impose consequences on the company's principal and his new enterprise, given that the company's negligent electrical work resulted in the death of an elderly man.

The court granted the extension, finding that the ESA demonstrated a bona fide intention to appeal, acted diligently in pursuing the appeal, and that the proposed appeal had sufficient arguable merit.