Date: 20010108
Docket: A-579-99
Coram: DESJARDINS J.A.
DÉCARY J.A.
NOËL J.A.
Between:
SANDRA STEIN
Appellant
-and-
HER MAJESTY THE QUEEN
Respondent
Hearing held at Montréal, Quebec, on Monday, January 8, 2001.
Judgment delivered from the bench at Montréal, Quebec, on Monday, January 8, 2001.
REASONS FOR JUDGMENT OF THE COURT BY: DESJARDINS J.A.
Date: 20010108
Docket: A-579-99
Coram: DESJARDINS J.A.
DÉCARY J.A.
NOËL J.A.
Between:
SANDRA STEIN
Appellant
-and-
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT OF THE COURT
(Delivered from the bench at Montréal, Quebec,)
on Monday, January 8, 2001)
DESJARDINS J.A.:
[1] The appellant is appealing a decision of the Tax Court of Canada (reported at [1999] T.C.J. No. 372 (Q.L.), Judge Louise Lamarre Proulx), which dismissed her claims that she was a passive director, and that therefore, in her opinion, she was not subject to the responsibilities of a director under subsection 323(3) of the Excise Tax Act, R.S.C. 1985, c. E-15 (the "Act").
2
Subsection 323(3) reads as follows:
| (3) Diligence - A director of a corporation is not liable for a failure under subsection (1) where the director exercised the degree of care, diligence and skill to prevent the failure that a reasonably prudent person would have exercised in comparable circumstances.
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(3) Diligence - L'administrateur n'encourt pas de responsabilité s'il a agi avec autant de soin, de diligence et de compétence pour prévenir le manquement visé au paragraphe (1) que ne l'aurait fait une personne raisonnablement prudente dans les mêmes circonstances.
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[2] We are all of the view that this appeal cannot succeed.
[3] In Soper v. Her Majesty the Queen, [1998] 1 F.C. 124 (C.A.), in subsection 56, our Court noted the following:
. . . Whether the standard of care has been met, now that it has been defined, is thus predominantly a question of fact to be resolved in light of the personal knowledge and experience of the director at issue.
[4] The trial Judge seriously questioned the credibility of the appellant and other witnesses because their testimonies were not consistent with the facts.
[5] In the absence of a "palpable and overriding error" ([1976] 2 S.C.R. 802">Stein v. The Ship "Kathy K", [1976] 2 S.C.R. 802) on the part of the trial Judge, our Court could not intervene.
[6] No error of this nature has been proven to us.
1
[7] The appeal will therefore be dismissed with costs.
Alice Desjardins
J.A.
MONTRÉAL, QUEBEC
January 8, 2001
Certified true translation
Monica Chamberlain
FEDERAL COURT OF APPEAL
Date: 20010108
Docket: A-579-99
Between:
SANDRA STEIN
Appellant
-and-
HER MAJESTY THE QUEEN
Respondent
REASONS FOR JUDGMENT OF THE COURT
FEDERAL COURT OF APPEAL
NAMES OF COUNSEL AND SOLICITORS OF RECORD
COURT FILE NO.: A-579-99
CORAM: DESJARDINS J.A.
DÉCARY J.A.
NOËL J.A.
STYLE OF CAUSE:
SANDRA STEIN
Appellant
-and-
HER MAJESTY THE QUEEN
Respondent
PLACE OF HEARING: Montréal, Quebec
DATE OF HEARING: January 8, 2001
REASONS FOR JUDGMENT OF THE COURT:
THE HONOURABLE MADAM JUSTICE
DESJARDINS, J.A.
DATED: January 8, 2001
APPEARANCES:
Louis-Frédérick Côté FOR THE APPELLANT
Pierre Séguin and Pierre Zemaitis FOR THE RESPONDENT
SOLICITORS OF RECORD:
Mendelsohn, Rosentzveig, Shacter FOR THE APPELLANT
Montréal, Quebec
Veillette et Associés FOR THE RESPONDENT
Montréal, Quebec
Date: 20010108
Docket: A-579-99
Montréal, Quebec, Monday the 8th day of January 2001
CORAM: DESJARDINS J.A.
DÉCARY J.A.
NOËL J.A.
BETWEEN:
SANDRA STEIN
Appellant
-and-
HER MAJESTY THE QUEEN
Respondent
JUDGMENT
This appeal is dismissed with costs.
Alice Desjardins
J.A.
Certified true translation
Monica Chamberlain
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