Bryan Hsu

The appellant, a corporate officer and sole director, appealed a judgment finding him personally liable for civil fraud arising from his company's failure to deliver 3 million NIOSH certified N95 masks during the COVID-19 pandemic to a Quebec hospital network, after receiving over US$11 million in advance payment.

The Court of Appeal dismissed the appeal, holding that the trial judge applied the correct threshold for recklessness in finding civil fraud and that the law clearly supports personal liability of officers and directors for fraudulent conduct, without needing to assess whether the conduct was "tortious in itself" or exhibited a "separate identity or interest."

The moving parties sought to quash the responding party's appeal of an order validating service of an application record.

The responding party, a foreign state, argued the order was final because it determined substantive rights regarding state sovereignty and the Hague Convention.

The Court of Appeal held that the order validating service was procedural and interlocutory, as it did not finally dispose of the dispute or deprive the responding party of substantive defences.

The motion was granted and the appeal was quashed.

The court considered whether service of an application record on the Republic of Argentina in a proceeding to enforce a U.S. judgment had to comply with the Hague Convention or could be validly effected through diplomatic channels under the State Immunity Act.

The court held that the State Immunity Act provides three non-hierarchical, alternative methods for service on a foreign state, and that service through diplomatic channels was valid.

The Republic’s motion for a declaration that it had not been duly served was dismissed, and costs were awarded to the applicants.