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ARTICLE · 23 APRIL 2013

Unlimited Personal No Fault Liability For Directors And Officers?

A discussion on whether former corporate directors and officers have presumptive unlimited, personal, no-fault liability to orders to pay all environmental costs associated with the assets of their former corporation, or of the subsidiaries of that corporation.

CanadaEnvironment

The Ontario government is arguing in Superior Court today that former corporate directors and officers have presumptive unlimited, personal, no-fault liability to orders to pay all environmental costs associated with the assets of their former corporation, or of the subsidiaries of that corporation.

Northstar Aerospace (Canada), which is now bankrupt, owned 695 Bishop Street, Cambridge, Ontario, an industrial site with a substantial historic chlorinated solvent plume (TCE) that flows under part of the Bishop Street community. It spent close to $20 million to investigate, manage and remediate the contamination, under MOE supervision, until it ran out of money in 2012.

Last summer, the Ontario Ministry of the Environment failed to block the distribution to secured creditors of the proceeds of the marketable assets of Northstar Canada and of its parent company, Northstar Aerospace Inc. Justice Morawetz of the Superior Court (Commercial List) ruled that the money

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