On an appeal from summary judgment dismissing a corporate appellant's crossclaim against a transfer agent, the court rejected the argument that the transfer agent breached either a statutory due diligence duty under s. 91(1) of the Ontario Business Corporations Act or a common law duty by issuing a share certificate after raising concerns with inside counsel.
The court held the respondent had acted in good faith and had not failed in its duty.
The appeal succeeded only to the extent of narrowing an indemnity order as premature and overly broad, limiting contribution and indemnity to the contractual provision and striking a further paragraph of the order.
Costs were awarded to the respondent on a party-and-party basis.