Monthly Archives: September 2013

Manager's Liability…what it means to me as a bankrupt…


I recently read an article in The Lawyers Weekly related to Employment Law, and the impact that a fiduciary relationship may have when charges are brought. The case that was referenced in the article was Navrab Investments Inc. v. Vaidyan [2012] O.J. No. 5704. The specific facts of the case are not important… a person was sued by his company for theft. He was stealing from the till. He was a manager of some sorts, and the company alleged that this gave rise to a level of fiduciary duty. Meaning that he was in a relationship of trust and confidence, and he had a duty to uphold that. He was stealing from the till, and using his position to right off the money he took as ‘void’ entries. Needless to say he was found guilty.

What’s very interesting is that the lawyer for the company asked that the order specifically refer to this fact, and asked for a declaration that the order survives bankruptcy under a section 178(1)(d) of the Bankruptcy and Insolvency Act.  While the company’s lawyers felt that this was pertinent, it’s not clear that this type of declaration is needed. – but rather – its more expedient. If it’s in the order that the judgment would survive bankruptcy on the basis of fraud, then it would be tough to argue that this was not what the judge had intended. The ramifications here are that any person in a position that could be interpreted as instilling “trust and confidence” should be careful in their actions. The bankruptcy process, as all other law, is intended to be beneficial to people who are honest. If you steal, or cheat, then it will catch you.