Eugène Czolij

The Supreme Court of Canada allowed two appeals concerning the bankruptcy of Nolisair International Inc. and Sécurité Saglac (1992) Inc. The Court adopted the dissenting reasons of Fish J.A. from the Quebec Court of Appeal, setting aside the appellate judgments and restoring the Superior Court decisions regarding the provincial Crown's deemed trust for deductions at source.

The appellant appealed a Superior Court judgment authorizing the respondent, a Director appointed under the Canada Business Corporations Act, to summon witnesses for an examination on discovery in the context of an oppression remedy settlement.

The Court of Appeal dismissed the appeal, finding the interlocutory judgment was not appealable as of right.

The Supreme Court of Canada dismissed the appeal, holding that section 249 of the Act only permits appeals as of right for orders made pursuant to powers expressly conferred by the Act, not for interlocutory judgments rendered under suppletive provincial rules of civil procedure.

The appellant bank, as assignee of a bankrupt subcontractor's accounts receivable, brought a delictual action against the respondent owner (Hydro-Québec) for failing to disclose geotechnical reports that revealed poor soil conditions and errors in the original design.

The trial judge allowed the action, finding the owner acted fraudulently by hiding the information, which led to the subcontractor's financial ruin.

The Court of Appeal reversed this decision.

The Supreme Court of Canada allowed the appeal in part, holding that the Court of Appeal erred in overturning the trial judge's findings of fact without demonstrating a palpable and overriding error.

The Court affirmed that a contracting party can be delictually liable to a third party (the subcontractor) for failing to act reasonably, which includes a duty to inform in the context of a large construction project where the owner possesses superior expertise and knowledge of design errors.