Is a director or a servant of a corporation liable in tort for inducing or procuring a breach of contract?

Saskatchewan, Canada


The following excerpt is from Schmeichel v. Lane, Thatcher and Bernston, 1982 CanLII 2471 (SK QB):

In my opinion the above excerpt from the judgment of Maguire, J.A. strengthens rather than weakens the plaintiff’s position to retain the statement of claim as pleaded. While it is a general rule that the directors or servants of a corporation acting within the scope of their authority are not liable in tort for inducing or procuring a breach of contract by their employer, there is, nevertheless an exception to this rule. That exception is where “some ... of the directors . . . conspire, before the board meeting ... to induce the board as a whole wrongfully to break a contract by dismissing one of the company’s servants” (Porter, J., in De Jetley Marks v. Greenwood (Lord), supra).

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