15 September 2017
By Khrystina McMillanIn a decision released last Monday, September 18, 2017, the Ontario Court of Appeal overturned a decision to deny leave to proceed against individual defendants to a misrepresentation claim under Part XXIII.1 of the Ontario Securities Act (“OSA”). In Rahimi v SouthGobi Resources Ltd., the plaintiff sought leave to pursue an action against SouthGobi Resources Ltd. (“SGR”) and five current and former SGR directors and officers for alleged misrepresentations in SGR’s financial statements between 2010 and 2012. The defendants challenged the plaintiff’s motion for leave, relying in part on the defence of reasonable investigation. Although the Rahimi decision confirms that courts will consider and evaluate defences at the leave stage, the Court of Appeal emphasized that leave will not be denied where there is a lack of a clear record in support of the defence.
15 September 2017
By Khrystina McMillanWelcome to the first blog post of Babin Bessner Spry’s revamped website! We will be updating the blog on a regular basis to provide information about key cases or developments in a wide range of practice areas, including securities litigation, corporate governance, shareholder oppression, insolvency, intellectual property, conspiracy, fraud, product liability, professional liability and discipline, employment, competition, class action and advertising law.