The trustees of a sole shareholder trust sued lawyers and accountants after tax assessments led to bankruptcies within a corporate group and the trust’s loss in share value.
The majority held that shareholders cannot sue for corporate losses unless they plead breach of a distinct obligation and direct personal injury.
On the pleaded facts, the claimed injury reflected corporate losses and did not establish sufficient interest under Quebec procedure.
The appeal was dismissed, with a dissent that would have allowed the action to proceed to trial.
