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ARTICLE · 09 JULY 2019

Leave To Commence Derivative Action Allowed Where Continuous Breaches Occurred Under An Agreement

In Sax v Rick Aurora, 2019 ONSC 3573, the Divisional Court considered the application of the Limitations Act, 2002 in the context of a derivative claim brought under section 246 of the Business

CanadaCorporate/Commercial Law

In Sax v Rick Aurora, 2019 ONSC 3573, the Divisional Court considered the application of the Limitations Act, 2002 in the context of a derivative claim brought under section 246 of the Business Corporations Act for continuing breaches under an agreement. The plaintiff worked as a real estate agent for the defendants. He incorporated a numbered company to create a space for builders to sell pre-construction real estate to purchasers. His employer and the numbered company entered into an agreement whereby a portion of every commission earned by his employer operating in the numbered company's space would be paid to the numbered company.

The plaintiff was terminated on January 17, 2014, and shortly after commenced a claim against his former employer. The plaintiff subsequently learned that his former employer had not made any payments to the numbered company since the date of his dismissal, and did not intend to abide by the terms of the agreement. On April 11, 2017,

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