Tortious In Itself: Director Personal Liability Without Veil Piercing

A recent decision of Justice Wilton-Seigel, CHU de Québec-Université Laval v. Tree of Knowledge International Corp., 2024 ONSC 3541, helps to re-affirm the difference between veil piercing and direct personal liability of corporate directors and officers. Here's what happened and why it matters.

The Background

During the COVID-19 pandemic, CHU de Québec-Université Laval ("CHU"), a major healthcare institution, entered into a contract with Tree of Knowledge International Corp. ("TOKI") to purchase three million N95 masks. These masks were crucial during the pandemic. However, instead of receiving the promised N95 masks, CHU got KN95 masks, which didn't meet the agreed standards.