The appellant challenged an order striking his statement of claim for failure to disclose a reasonable cause of action arising from alleged negligent misrepresentation by a bank concerning continued corporate financing.
The court held that a shareholder, directing mind, guarantor, and creditor cannot personally recover the corporation's losses or guarantor-related losses as an independent cause of action, although properly pleaded personal losses may be recoverable.
The court accepted that an allegation of advancing personal funds in reliance on the misrepresentation could ground a personal claim, and that properly pleaded reputational or credit damage might also be available.
The appeal was dismissed, but leave to amend was granted in light of the possibility of a properly pleaded personal claim and a potential limitation issue.
