Do You Have Due Diligence And Can You Prove It?

The proof of due diligence by a defendant, on a balance of probabilities, is fact dependent. A recent Ontario trial decision provides a useful overview of the framework for a finding that due diligence has been proven.

The charges stemmed from a tragic 2012 incident in which a worker suffered a serious injury to his foot, which had to be amputated.

The defendant company was a manufacturer of machined metal products. It was in the process of manufacturing six large cylindrical spindles for its customer's massive trucks, which were used in the oil industry. Each spindle weighed about 10,000 pounds and was four to five feet long.

The manufacture of the second spindle was almost completed when the defendant's customer requested that the groove located at one end of the spindle be ground down. This had to be done by hand, since the spindle was already machined.