Prairie Risk Management Inc. v. Marsh Canada Ltd. et al.
PRAIRIE RISK MANAGEMENT INC.
Law Firm / Organization
Tapper Cuddy LLP
PRM INVESTMENTS INC
Law Firm / Organization
Tapper Cuddy LLP
MARSH CANADA LTD.
Law Firm / Organization
Lenczner Slaght LLP
KEVIN McCREDIE
Law Firm / Organization
Lenczner Slaght LLP
ANDREW ROSS
Law Firm / Organization
Lenczner Slaght LLP
SYLVITE FINANCIAL SERVICES INC. C.O.B. AS RISK MANAGEMENT ALLIANCE INC.
Law Firm / Organization
Lenczner Slaght LLP

Facts:

  • PRM specialized in insurance for Manitoba's pork industry, combining smaller and larger operators to reduce premiums.
  • PRM provided confidential client information to Marsh to obtain insurance.
  • Marsh used PRM’s confidential information to solicit PRM’s clients for its own benefit.
  • PRM lost significant business and income and had to sell its business at a reduced value.

Court Findings:

  • Breach of Contract: An implied confidentiality agreement existed between PRM and Marsh.
  • Breach of Confidence: Marsh misused PRM’s confidential information, which was not public and required effort to compile.
  • Breach of Fiduciary Duty: Marsh had a fiduciary duty to PRM, which it breached by using PRM’s client information for its own purposes.
  • Other Claims: The claims for breach of duty of honesty, wrongful interference with economic relations, and breach of trust were dismissed.

Damages:

  • PRM was awarded $1,534,000.00 for loss of income and reduced sale price, plus pre- and post-judgment interest and costs.

Key Precedents:

  • Canadian Pacific Hotels Ltd. v. Bank of Montreal
  • Lac Minerals Ltd v. International Corona Resources Ltd.
  • Bhasin v. Hrynew
  • C.M. Callow Inc. v. Zollinger
  • Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District
  • Soulos v. Korkontzilas

The court found Marsh Canada Ltd. liable for significant breaches, resulting in a substantial financial judgment for PRM.

Court of King's Bench Manitoba
CI 17-01-07824
Civil litigation
$ 1,534,000
Plaintiff