Ontario Civil

Debtor and Creditor

Two principals acted in concert in theft and diversion of scrap metal

Plaintiff claimed unpaid trucking invoices owed by defendant to plaintiff. Defendant brought counterclaim for lost profits caused by plaintiff in diverting shipments of scrap metal and selling it to scrap yards for profit. Plaintiff argued principal of defendant fully participated in scheme and shared profits. Defendant claimed tort of intentional interference with economic relations. Plaintiff was to have judgment in amount of $97,766. Counterclaim was dismissed. Defendant failed to meet burden in relation to tort. Two principals acted in concert in theft and diversion of scrap metal. There was delay and inaction on part of principal of defendant. Principal of defendant ran day-to-day operations related to trucking of scrap metal. Inaction of defendant’s principal was deliberate decision to avoid disclosure and further investigation of involvement of defendant’s principal in scheme. Documentary evidence showed defendant’s principal had knowledge of scheme and was willing participant. Doctrine of abuse of process was not applicable. Issue of misleading court was more appropriately addressed in relation to issue of costs.

1590825 Ontario Ltd. v. 1199547 Ontario Ltd.

(Sep. 16, 2011, Ont. S.C.J., Shaughnessy J., File No. 61249/09SR) 207 A.C.W.S. (3d) 272 (13 pp.).

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