Summary Judgment for $20 Million Overturned
Added on 2023-04-20
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Business Law Assignment
Summary Judgment for $20 Million Overturned
“$20-million judgment overturned” Law Times March 25, 2019
https://www.lawtimesnews.com/article/20-million-judgment-overturned-17037/
This article is related to the decision of the Ontario Court of Appeal to reverse the summary
judgment for $20 million based on criminal conviction for fraud regarding $5000.
The appellant in this case, Dirk Plate, appealed from the order of the motion judge to grant
summary judgment of $20 million to the respondent Atlas Copco Canada Inc., regarding its civil
claim against the appellant for the breach of his fiduciary duty (CanLII, 2019). Plate was
employed as the General Manager of the Construction and Mining Technique (CMT) division
and promoted as Vice President for Global Strategic Customers. His employment was terminated
by the respondent in 2007 and was sued in 2008 on the claim of involvement in a scheme that
defrauded the company. Plate was afterwards charged criminally for being convicted of
defrauding the company of more than $5000 in contradiction to section 380 (1) of the Criminal
Code, R.S.C. 1985, c. C-46. During imposition of sentence, judge found that participation of
appellant in the fraudulent scheme accounted for ‘gross breach of his fiduciary duty’ towards the
respondent (CanLII, 2019). The respondent then moved for summary judgment in its civil action,
where the motion judge determined that Plate was fiduciary of the respondent and had breached
his fiduciary duty and granted the judgment for $20 million for the company.
The Court of Appeal of Ontario has now reversed the summary judgment for $20 million based
on criminal conviction for fraud of around $5000 through the fraudulent scheme. The lawyer for
the appellant stated that the case required scrutiny, as the court of appeal has reasoned serving
notice that there are clear limits regarding admissibility of when parties should rely on the
material from criminal proceedings as proved in subsequent civil matters (CanLII, 2019). It was
“$20-million judgment overturned” Law Times March 25, 2019
https://www.lawtimesnews.com/article/20-million-judgment-overturned-17037/
This article is related to the decision of the Ontario Court of Appeal to reverse the summary
judgment for $20 million based on criminal conviction for fraud regarding $5000.
The appellant in this case, Dirk Plate, appealed from the order of the motion judge to grant
summary judgment of $20 million to the respondent Atlas Copco Canada Inc., regarding its civil
claim against the appellant for the breach of his fiduciary duty (CanLII, 2019). Plate was
employed as the General Manager of the Construction and Mining Technique (CMT) division
and promoted as Vice President for Global Strategic Customers. His employment was terminated
by the respondent in 2007 and was sued in 2008 on the claim of involvement in a scheme that
defrauded the company. Plate was afterwards charged criminally for being convicted of
defrauding the company of more than $5000 in contradiction to section 380 (1) of the Criminal
Code, R.S.C. 1985, c. C-46. During imposition of sentence, judge found that participation of
appellant in the fraudulent scheme accounted for ‘gross breach of his fiduciary duty’ towards the
respondent (CanLII, 2019). The respondent then moved for summary judgment in its civil action,
where the motion judge determined that Plate was fiduciary of the respondent and had breached
his fiduciary duty and granted the judgment for $20 million for the company.
The Court of Appeal of Ontario has now reversed the summary judgment for $20 million based
on criminal conviction for fraud of around $5000 through the fraudulent scheme. The lawyer for
the appellant stated that the case required scrutiny, as the court of appeal has reasoned serving
notice that there are clear limits regarding admissibility of when parties should rely on the
material from criminal proceedings as proved in subsequent civil matters (CanLII, 2019). It was
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