The appellants were sued by a credit union for monies owed under a credit facility after an employee stole $30 million.
The appellants counterclaimed against the regulators, FSCO and DICO, seeking contribution and indemnity on the basis that they negligently failed to oversee the credit union.
The Court of Appeal upheld the motion judge's decision to strike the counterclaim, finding that FSCO is not an entity capable of being sued, DICO is protected by statutory immunity, and the appellants had no tenable claim for contribution and indemnity under the Negligence Act because they were not tortfeasors.
