The appellant, Meditrust Healthcare Inc., operated a national mail-order pharmacy business through subsidiaries to comply with provincial regulations.
Meditrust sued the respondents for various economic torts, alleging a conspiracy to destroy its business.
The motions judge granted partial summary judgment dismissing most claims, holding that under the rule in Foss v. Harbottle, Meditrust could not sue for damages that were derivative of those suffered by its subsidiaries.
On appeal, the Court of Appeal upheld the motions judge's decision on all grounds except for Meditrust's claim for loss of goodwill, finding that damage to reputation could constitute a direct, personal loss to the shareholder.