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ARTICLE · 09 OCTOBER 2023

Liability In Construction Contracts: When To Pierce The Corporate Veil

A majority shareholder faced potential personal liability due to negligence during project oversight; however, the Alberta Court of Appeal clarified that such liability isn't easily established...

CanadaReal Estate and Construction

A majority shareholder faced potential personal liability due to negligence during project oversight; however, the Alberta Court of Appeal clarified that such liability isn't easily established, emphasizing that the corporate veil isn't readily pierced.

This case underscores the importance of distinguishing between personal and corporate responsibilities in construction projects, shedding light on the rarity of personal liability, particularly in cases involving economic loss. 

Will a director and majority owner of a limited liability construction company be liable for failures on a project? What if he is negligent in his oversight of the project and dealings with the owners?

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