Northstar Settlement Underscores Troubling Times for Directors
and Officers Liability Exposures
Northstar Aerospace (Canada) Inc.'s former
directors and officers denied liability for contamination at the
site of the defunct company, yet remained on the hook for millions
in clean-up costs. The settlement is indicative of the serious
risks that directors and officers are exposed to from environmental
enforcement. In particular, the settlement shows that the former
D&Os of a bankrupt company can be held personally responsible
for clean-up orders long after their company's assets have
disappeared.
After a convoluted legal odyssey through Ontario's courts
and tribunals, twelve former directors and officers (D&Os) of
bankrupt aerospace firm Northstar Aerospace (Canada) Inc.
(Northstar) have settled with the Ministry of the Environment and
agreed to pay $4.75M in clean-up costs. That's in addition to
the $800,000 they'd already spent and about one-third of the
estimated
