Alberta Court Of Appeal Finds Corporate Director Not Personally Liable For Negligent Misrepresentation

The Alberta Court of Appeal recently decided that a corporate director who was found to have made negligent misstatements about the management team's knowledge, expertise and competence to operate its business, was not personally liable in tort.

In Hogarth v. Rocky Mountain Slate Inc. et al, 2013 ABCA 57, the Alberta Court of Appeal overturned the decision of the trial judge, thereby absolving one of six corporate directors (and the only one to appeal the trial decision) of personal liability for negligent misrepresentation.

Simonson was Chairman of the Board of Directors of Rocky Mountain Slate Inc. He was also a shareholder and an officer of Rocky Mountain Slate Inc.

For the purpose of raising capital for the company, a limited partnership was created. Among the material prepared was a business plan, an "Investment Opportunity" document, and a "Future Oriented Financial Information for the Three Years ended December 31, 2001...