The Alberta Court of Appeal recently handed down a decision in which a director of a construction company was found personally liable for 50% of the damages in a case involving a death in the workplace.

A worker was killed when a hoist dropped a load on him and the family sued the company and the director.

It was noted that the company had no written safety policies or safety courses.

The court indicated that there was a “duty on the part of the directors to take such measures as are reasonably within their capacity to ensure that where the corporations employ others in hazardous activities, the directors will in good faith establish corporate policies that are reasonably oriented towards the corporation meeting its legal requirements as to worker safety and public safety.”

Lessons to be learned:

• If you are an owner, officer or director of a company, you can’t always avoid liability by “hiding behind” corporate protection;
• You will be responsible if you fail to have proper policies, procedures and proof in place to provide accountability;
• Your insurance may or may not cover this since liability is personal;
• Due Diligence, which would be an absolute defence to this type of action, requires proper systems.