Can a stranger to a trust be liable for a breach of trust committed by the corporation?
Ontario, Canada
The following excerpt is from American Axle & Manufacturing Inc. v. Durable Release Coaters Limited et al., 2010 ONSC 3368 (CanLII):
A stranger to a trust, including a director of a corporation, can be liable for a breach of trust committed by the corporation if the person had both actual knowledge of the trust and knowingly assisted the trustee in a fraudulent and dishonest breach of trust, fraud including the taking of a risk to the prejudice of another’s rights. See Air Canada v. M&L Travel Ltd., 1993 CanLII 33 (SCC), [1993] 3 S.C.R. 787 at 825-6 per Iacobucci J.
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