Rhône (The) v. Peter A.B. Widener (The)

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Rhône (The) v. Peter A.B. Widener (The)

Supreme Court of Canada
Hearing: May 26, 1992
Judgment: February 25, 1993
Full case name: '
Citations: [1993] 1 S.C.R. 497
Court membership

Chief Justice: Antonio Lamer
Puisne Justices: Gérard La Forest, Claire L'Heureux-Dubé, John Sopinka, Charles Gonthier, Peter Cory, Beverley McLachlin, Frank Iacobucci, John C. Major
Reasons given

Majority by: Iacobucci J.
Joined by: La Forest, Sopinka, Gonthier and Cory JJ.
Concurrence/dissent by: McLachlin J.

Rhône (The) v. Peter A.B. Widener (The) [1993] 1 S.C.R. 497 is a Supreme Court of Canada decision on "directing mind" principle of corporate liability. The Court held that an individual must have "governing authority over the management and operation" of the corporation to be considered a "directing mind".

Contents

[edit] Background

While moored in the Montreal Port, the Rhone was struck by the Peter Widener, a barge that was being towed by several tugboats. The tugboats were owned by the Great Lakes tugboat company. "North Central", owner of the Rhone, sued Great Lakes and Captain Kelch, the captain of one of the tugboats, for negligence.

The primary issue before the Supreme Court was whether Kelch was a directing mind of "North Central" by virtue of the fact that he exercised some discretion and performed some non-navigational functions as an incident of his employment.

[edit] Opinion of the Court

The Court found that Kelch was not a directing mind. It held that to be a directing mind, the discretion given to the employee must amount to a delegation of central authority for the purpose of setting policy rather than out of necessity to accomplish the employees duties.

[edit] See also

[edit] External links

  • Full text of Supreme Court of Canada decision at LexUMand CanLII
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