Joe Sather successfully defended an appeal before the British Columbia Court of Appeal arising from a corporate opportunity dispute involving the acquisition and use of ranch lands in a closely held commercial enterprise.
While the action involved findings relating to fiduciary obligations and the appropriation of a corporate opportunity, the appeal focused on the appropriate remedy. The plaintiffs sought to overturn the trial judge's remedial decision and obtain ownership-based relief in relation to the land. Fasken acted as appellate counsel for Joe Sather, developing the appellate strategy, preparing the factum, and delivering oral argument before the Court of Appeal.
The Court of Appeal upheld the trial judge's equitable compensation award and confirmed that compensation should be based on the likelihood that the lost opportunity would have occurred, rather than granting ownership of the land to the corporation as sought by the plaintiffs. In doing so, the Court provided important guidance regarding fiduciary obligations, corporate opportunity claims, and the remedial framework applicable to closely held companies.
The decision is a significant appellate authority on equitable remedies and the corporate opportunity doctrine. It confirms that courts retain broad discretion to award loss-based remedies where business opportunities are contingent or uncertain and provides valuable guidance on the balance between fairness, proportionality, and deterrence in crafting remedies for breaches of fiduciary duty.
Fasken represented Joe Sather with a team led by Kaleigh Milinazzo (Litigation & Dispute Resolution), and included Tom Posyniak (Litigation & Dispute Resolution) and Tyler Murphy (Litigation & Dispute Resolution).
Jurisdiction
- British Columbia
