No Oppression Claim Against Directors Personally Unless A Director Instigates The Conduct

In a recent Ontario Superior Court of Justice decision, a declarant sued a condominium corporation and individual directors for oppressive conduct. The court threw out the claim against the individual directors because the declarant did not provide sufficient particulars, the alleged conduct did not result in any personal benefit, and there was no reasonable basis to decide whether the alleged oppression could be rectified by a monetary order against the directors personally. The court confirmed that directors should be held personally liable if they are the motivating force behind oppressive conduct. The court cautioned against allowing claims against directors for errors in everyday management of the affairs of the corporation that do not personally benefit them.