James R. Adams

The appellant episcopal corporation appealed a finding of direct liability for sexual assaults committed by a parish priest over two decades.

The respondents cross-appealed, arguing the corporation was also vicariously liable.

The Supreme Court of Canada dismissed the appeal, confirming the corporation was directly liable because the bishop's failure to properly direct and discipline the priest constituted negligence by the corporation.

The Court also held the corporation vicariously liable, finding a sufficiently close relationship between the diocesan enterprise and the priest, and a strong connection between the employer-created risk and the wrongful acts.

The appellant challenged a motion judge's refusal to permit amendments to plead negligence and insurer bad faith in an insurance action.

The Court of Appeal held that, to the extent the proposed negligence claim advanced an independent cause of action not governed by the policy's one-year statutory limitation period, it was subject to the six-year negligence limitation period and was sought too late absent special circumstances.

The court found no basis to interfere with the motion judge's finding that no such special circumstances existed.

The proposed bad faith amendments were also deficient because they either related to costs or failed to disclose a proper legal basis.

The appeal was dismissed with costs.