The appellant hired the 13-year-old respondent to perform chores at his cottage.
The respondent negligently started a fire while trying to refuel a lawn mower, causing $285,000 in damage.
The appellant's insurer brought a subrogated claim against the respondent in tort and contract.
The Court of Appeal dismissed the appeal, holding that an employee is generally not liable to indemnify an employer for ordinary negligence.
Applying the Anns test, the court found that while the harm was foreseeable, the parties' relationship lacked sufficient proximity to make liability just and fair, and residual policy considerations weighed against imposing a duty of care.