Summary: The Ontario Superior Court of Justice allowed Royal Bank of Canada (RBC) to proceed with negligence and oppression claims against several former officers of Chesswood Group Ltd. arising from allegedly inaccurate borrowing base and compliance certificates that caused the bank to over-advance funds and suffer losses of approximately $83 million. The individual defendants sought to strike the claims, arguing that they owed no independent duty of care to RBC and that their alleged conduct was undertaken in the course of their employment. The Court rejected those arguments in respect of three officers, finding that it was not plain and obvious that they could not be held personally liable for failing to implement adequate controls…
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