Court of Appeal for Ontario

CITATION: Knox v. Niagara Falls Taxi Ltd. (502909 Ontario Limited), 2014 ONCA 140

DATE: 20140224

DOCKET: C55623

BEFORE: Laskin, Goudge and Pardu JJ.A.

BETWEEN

Lewis Knox, Mary Cammie Bateman, and Jannese Freeman Plaintiffs (Respondents)

and

Niagara Falls Taxi Ltd., c.o.b. as 502909 Ontario Limited and Stephen Rashanod, Ayhan Alakoc, Diane Falconer, Mehmet Erilli and Michael Thewliss Defendants (Appellants)

COUNSEL: Elizabeth J. Forster and Christopher McClelland, for the appellant Gary McClelland, for the respondent

HEARD: February 19, 2014

On appeal from the judgment of Justice Barry H. Matheson of the Superior Court of Justice, dated May 15, 2012.

APPEAL BOOK ENDORSEMENT

[1] The appeal is allowed. There was no basis for finding the directors liable for breach of contract. The corporate defendant was found liable for termination of the contracts of dependent contractor taxi drivers without notice and damages were awarded in favour of the Plaintiffs against the Defendant corporation. No appeal is brought from that conclusion. It was not pleaded nor argued that the individual defendants were parties to the contract.

[2] There is no evidence of tortious conduct on the part of the individual defendants. The tort of intentional interference with economic relations requires an actionable wrong against a third party which is absent here. In addition, a claim for inducing breach of contract cannot proceed against a corporate officer or director where a claim for breach of contract lies against the corporation.

[3] The plaintiffs alleged that a tort was committed when the corporate defendant passed a board resolution which effected the termination of the Plaintiffs. Three of the individual defendants were not directors at that time.

[4] The award of costs against individual defendants in the judgement of May 15, 2012 is set aside. The Defendants Appellants are awarded costs of appeal fixed at $7500.00 inclusive of disbursements and H.S.T.