Litigation Trends In Corporate Canada

2020 has been a year of change and challenges. In this uncertain environment, corporate litigation has remained active, with disputes being heard electronically and digitally, as opposed to in court rooms.

In this article, we outline trends that have affected Canadian corporate litigation, highlighting risks to corporations and their directors and officers.

1. Caremark claims—coming soon to Canada?

In the United States, there has recently been an increase in "Caremark" claims, with five such claims being allowed to proceed in Delaware in the past two years¹. Caremark claims, which may be initiated after a significant failure of risk management, involve allegations that directors failed to make good faith efforts to oversee corporate operations, and therefore have breached their fiduciary duty of loyalty.